Equity

Alysia Debowski

alysia@largestprime.net

Thinking back to last week …

What is a fiduciary obligation? In what circumstances will a court find that

a fiduciary obligation exists? What will amount to a breach of a fiduciary

obligation? What remedies might be granted for

breach of a fiduciary obligation?

Estoppel in Equity

Waltons v Maher Estoppel

Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 Commonwealth v Verwayen (1990) 170 CLR 394 (at 434-436) Austotel Pty Ltd v Franklins Selfserve Stores Pty Ltd (1989) 16

NSWLR 582 W v G (1996) 20 Fam LR 49 S & E Promotions Pty Ltd v Tobin Bros Pty Ltd (1994) 122 ALR 637 Giumelli v Giumelli (1999) 161 ALR 473 Fitzwood Pty Ltd v Unique Goal Pty Ltd (in liq) [2001] FCA 1628

Proprietary Estoppel

Dillwyn v Llewelyn (1862) 4 De G F & J 517; 45 ER 1285 Ramsden v Dyson (1866) LR 1 HL 129 Plimmer v Mayor of Wellington (1884) 9 App Cas 699 Willmott v Barber (1880) 15 Ch D 96 Olsson v Dyson (1969) 120 CLR 365, per Kitto J at 376 Cameron v Murdoch (1986) 63 ALR 575 Riches v Hogben [1986] 1 Qd R 315 Jackson v Crosby (1979) 21 SASR 280

Applying the theory …

Barbie and Ken are looking for a house to rent that will fit them, their 7 children and all of their belongings.

After finding a perfect house in an area close to the children’s school and Barbie’s workplace, Barbie and Ken submit an application for tenancy to the real estate agent, Dodgy Rental Co.

The agent Debbie contacts Barbie and Ken to offer them the lease of the property. Debbie says that Barbie and Ken don’t need to sign any paperwork until the day they move in.

Barbie and Ken give notice of termination on their existing lease and arrange removalists on the strength of what Debbie has told them.

When they arrive in the removal truck at the house, Debbie’s supervisor informs them that Debbie had made a mistake – and the house had actually been leased to someone else.

Will equitable estoppel assist Barbie and Ken?

Confidential Information

Coco v A N Clark (Engineers) Ltd [1969] RPC 41 Saltman Eng. Co v Campbell Eng. Co (1948) 65 RPC 203, at 215 Herbert Morris Ltd v Saxelby [1916] AC 688 Potters-Ballotini Ltd v Weston-Baker Ltd [1977] RPC 202 LAC Minerals v International Corona Resources Ltd (1989) 61 DLR

(4th) 14 Faccenda Chicken v Fowler [1985] 1 Ch 724; [1986] 1 Ch 617 (CA) Wright v Gasweld (1991) 22 NSWLR 317 AG Australia Holdings Ltd v Burton (2002) 58 NSWLR 464 Cactus Imaging Pty Ltd v Glenn Peters [2006] NSWSC 717 (18 July

2006)

Applying the theory

Fred works for Enid’s phone counseling business, which provides personalised counseling catering to the individual needs of its clients. Records are kept of the clients’ personal histories, preferred payment method and the counseling sessions themselves.

When Enid returns from an ill-fated cruise on the Pacific Dawn, all of her employees have disappeared and some of the clients’ records appear to be missing.

Some of Enid’s clients inform her that Fred had contacted them and told them that the business was closing but would reopen under a new name and Fred’s leadership. All of Enid’s employees have gone to work for Fred.

What rights does Enid have to bring an action for breach of confidence?

Next class

Unconscionable Transactions Equity & Trusts, Chapter 6