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The scales of justice on a plain background

Ramsden v Dyson

1866 · LR 1 HL 129

Posted By lanbuk.com

Facts
Tenants built on land belonging to a large estate, believing, as they said, that they were entitled to long leases. The landlord had not made that promise in the terms they later alleged.
Issue
When will equity compel a landowner to make good an expectation he encouraged?
Held
On the facts the claimants failed. Lord Kingsdown stated the rule that is still quoted. If a man, under an expectation created or encouraged by the landlord, takes possession and spends money with the landlord's knowledge and without objection, equity will compel the landlord to give effect to that expectation.
Principle
protects a person who has acted to his detriment on an expectation the owner encouraged.
Why it matters
It is the starting point for licence by estoppel. Willmott v Barber later tried to list the elements. Taylor Fashions relaxed that list.

Words and Latin in this note

Proprietary estoppel
An equity that arises when an owner leads another to believe he has or will get a right in property, and the other relies on it to his detriment. The court gives the minimum remedy needed. Open the note.
Licence by estoppel
An equity that arises where the owner encourages another to act to their detriment, believing they have or will have a right in the land. The court gives whatever remedy is just. Open the note.
Estoppel
A rule that stops a person from going back on something they said or did when another person relied on it. Open the note.

For study only. By lanbuk.com. Always check current sources and consult a qualified professional.