Lafferty v Waterton [No 4]

The case of Lafferty v Waterton [No 4] involved a dispute between a daughter and her mother's estate over the inheritance of a portion of the mother's assets. The daughter alleged that her mother had promised her one third of her remaining assets, and that the mother had made substantial gifts to other children during her lifetime. The daughter sought equitable estoppel to prevent the mother's estate from denying the promise, as well as a constructive trust over the property disposed of during the mother's lifetime. The case was heard in the Supreme Court of Victoria.
The legal issues before the court were whether the mother's estate was estopped from denying the promise of one third of her assets to the daughter, and whether the property disposed of during the mother's lifetime was subject to a constructive trust as to one third of its value. The court also considered whether the daughter had given up her claim for family provision and, if so, whether the claim had any value. The court needed to determine whether the daughter's claim was enforceable under equity and whether a constructive trust should be imposed over the property in question.
The court found that the mother's estate was estopped from denying the promise of one third of her assets to the daughter, as the daughter had relied on the promise to her detriment by giving up her claim for family provision. The court held that the daughter's claim had value, as it represented a legitimate expectation of inheritance. The court also found that the property disposed of during the mother's lifetime was impressed with a trust as to one third of its value, and that this trust was enforceable under equity. The court imposed a constructive trust over the property to ensure that the daughter received her rightful share of the inheritance.
The final orders of the court were that the mother's estate was estopped from denying the promise of one third of her assets to the daughter, and that a constructive trust was imposed over the property disposed of during the mother's lifetime as to one third of its value. The daughter was entitled to receive her rightful share of the inheritance, and the mother's estate was liable for any losses or damages resulting from the breach of the promise. The court's decision provided clarity on the enforceability of promises of inheritance and the imposition of constructive trusts in cases of substantial gifts made during a person's lifetime.