McColl JA at [1]; Macfarlan JA at [2]; Emmett AJA at [22]
Decision:
(1) The appeal be allowed. (2) The orders made by the primary judge on 15 August 2016 and 25 August 2016 in proceedings 2013/302819 be set aside. (3) The parties file and serve written submissions relating to the appellant’s costs within 21 days of the date of these orders. (4) The parties provide to the Court short minutes of order giving effect to these reasons.
Catchwords:
CONTRACTS — Formation — Intention to create legal relations — whether intention to make a testamentary contract can be objectively inferred from the conduct of the appellant and the deceased — whether deceased was contractually obliged not to revoke will
ESTOPPEL — Proprietary estoppel — Standing by — Knowledge of mistake by party bound — present mistake of fact — whether appellant relied on the mistaken belief to his own detriment that he would inherit deceased’s property — whether unconscionable for deceased to accept benefit of appellant’s assistance when deceased knew of appellant’s mistaken belief — whether respondent is estopped from denying appellant’s entitlement to property
ESTOPPEL — Proprietary estoppel — Encouragement — Detrimental reliance — whether necessary for appellant to show that he would have acted differently but for his mistaken belief — whether appellant’s reliance on mistaken belief was unreasonable
EQUITY — Equitable remedies — Specific performance — principle of proportionality — whether the benefit of proprietary relief outweighs the detriment suffered by appellant — whether detriment suffered by appellant was substantial
[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.
[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.
[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.
Consideration
[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.
[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.
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AGLC
Priestley v Priestley [2017] NSWCA 155
Case
[2017] NSWCA 155
Decision Date
CaseChat Overview and Summary
The appeal in *Priestley v Priestley* concerned a dispute between the appellant and the respondent regarding the deceased's estate. The appellant alleged that the deceased had made a testamentary contract not to revoke her will, and alternatively, that the deceased was estopped from revoking her will due to the appellant's detrimental reliance on a mistaken belief that he would inherit certain property. The case was heard in the Court of Appeal of New South Wales.
The primary legal issues before the Court of Appeal were whether the conduct of the appellant and the deceased objectively demonstrated an intention to create a legally binding testamentary contract, and whether the deceased was contractually obliged not to revoke her will. Additionally, the court was required to determine if the doctrine of proprietary estoppel applied, specifically whether the appellant had relied to his detriment on a mistaken belief that he would inherit the deceased's property, and if it would be unconscionable for the deceased to have accepted the benefit of the appellant's assistance while aware of this mistaken belief. The court also considered whether the appellant needed to demonstrate that he would have acted differently but for his mistaken belief, and whether his reliance was unreasonable, as well as the proportionality of granting proprietary relief in light of the detriment suffered.
The Court of Appeal allowed the appeal, setting aside the orders made by the primary judge. The court found that the elements of proprietary estoppel were made out, concluding that it was unconscionable for the deceased to have accepted the benefit of the appellant's assistance when she knew of his mistaken belief that he would inherit the property. The court determined that the appellant's reliance on this mistaken belief was reasonable and that the detriment suffered was substantial, outweighing any potential detriment to the estate. Consequently, the court found that the deceased was estopped from denying the appellant's entitlement to the property.
The Court of Appeal ordered that the appeal be allowed, the orders of the primary judge be set aside, and that the parties file written submissions regarding costs. The parties were also directed to provide short minutes of order giving effect to the court's reasons.
Orders
Orders of the court
(1) The appeal be allowed.
(2) The orders made by the primary judge on 15 August 2016 and 25 August 2016 in proceedings 2013/302819 be set aside.
(3) The parties file and serve written submissions relating to the appellant’s costs within 21 days of the date of these orders.
(4) The parties provide to the Court short minutes of order giving effect to these reasons.