Parents forced to sell farm in proprietary estoppel claim issued by son

The High Court has recently ruled in another proprietary estoppel claim which arose within a farming family.

The case of Guest v Guest (2019) was an inheritance dispute relating to a dairy farm in Monmouthshire known as Tump Farm which was owned by David and Josephine Guest. The couple’s son, Andrew Guest, started working at Tump Farm as a school leaver and worked there continuously for a period of 32 years.

Andrew’s role had perks which included free accommodation in a cottage located on the farm but he had committed his life to the farm working very long hours (often 60 hour weeks). Andrew had not pursued more other lucrative professions on the understanding that he would eventually inherit Tump Farm (along with the dairy farming business).

David and Josephine Guest had originally made wills leaving the farming business and the farm to Andrew and his brother Ross, with a small legacy to their daughter Jan. However, after a family fall out, Andrew was cut out of his parents’ will with Ross being named as the sole beneficiary.

Andrew issued a proprietary estoppel claim in the court on the basis that his parents had promised that he would inherit a substantial proportion of the farm and the family business. Andrew gave evidence that in detrimental reliance of these promises, he had worked long hours working on the farm and spent his own money on the farm and borrowed money to renovate his cottage.

The court made an order in Andrew’s favour and awarded him 50% of the value of the family business and 40% of the value of the farming land and buildings. The value of this award equates to approximately £2.7 million. The Judge had difficulty in establishing the appropriate value of the award. Clearly, Andrew did not expect to receive anything until after his parent’s had died. However, the court made an accelerated award and determined that due to the severe breakdown of the relationship, a clean break was required. This means that Andrew will receive a payment in the form of a lump sum. His parents will likely have to sell the farm to pay Andrew his award.

If you would like more information about proprietary estoppel claims or if you would like to discuss an inheritance dispute or will dispute please call 01384 410410 and ask to speak to Liam Owen or Susan Ford. Alternatively, you can e-mail us at contentiousprobate@georgegreen.co.uk providing a brief summary of the issues you wish to discuss with us, along with your contact details and we will contact you if we think we may be able to help.