Land registration and proprietary estoppel

• Author: Simon Cooper
• Position: Of the Cayman Islands Law School
• Pages: 478-500

LANDREGISTRATIONANDPROPRIETARYESTOPPEL

SimonCooper*

ThelawoftheCaymanIslandsrecognisesequitableestoppel,

otherwiseknownasproprietaryestoppel,asbothadefenceanda

causeofactioninclaimsrelatingtoland. Butthepreciseimpactof

aproprietaryestoppelclaimonsubsequentpurchasersofthelandis

anissueonwhichthereis littleclearguidanceintheCaymanIslands

orEngland.Thisarticleidentifiesandexploressomeoftheissues

whichareraisedforthirdpartieswhoacquirethelandtowhichthe

estoppelclaimrelates.Themattersconsideredarealsorelevantto

thoseotherCaribbeanjurisdictionswhichhavelegislationderived

fromtheKenyanRegisteredLandAct1963.

ProprietaryStatusoftheInchoateEstoppelEquity

Proprietaryestoppelarisesthroughrepresentationoracquiescence.

Whenanowneroflandwhomakesarepresentationthataclaimant

has, orwill acquire,rightsintheland,andtheclaimant inrelianceon

thatrepresentationactstohisdetriment,an“equity” arisesinfavour

oftheclaimantwhichwillbevindicatedbythecourtasitseesfitin

itsdiscretion.Sucha“representation”maytaketheformofeitheran

expresspromisebytheowner,ortheowner’stacitacquiescencein

theclaimant’sdetrimentalreliance. Althoughthetwomanifestations

ofproprietaryestoppelarebasedonthesameunderlyingprincipleof

OftheCaymanIslandsLawSchool.IamindebtedtoMr.C.Buchanan,Directorof

theLands andSurveyDepartmentandRegistrarofLands,whoprovidedhelpful

commentsonanearlier draft.

478

Land Registrationand ProprietaryEstoppel479

preventingtheowner’s unconscionableconductinattemptingtodeny

hisearlierrepresentation,itseemsthatthetwoformsretainacertain

separateidentity.1

Theequitythatisgeneratedbytheestoppel isaninchoateclaimto

theexerciseofthecourt’s discretion,andthuscannoteasilybe

categorisedintooneoftheestablishedinterestsinland,orother

recognisedpersonalorproprietaryright,untilthecourtmakesits

declarationastotheappropriateremedy.Itisthereforenecessaryto

summarisethepossibleviewsastothestatusoftheclaim.

Non-ProprietaryStatus

CertaindictaoftheEnglishcourtsproposethatanequityisnot

capableofenforcementagainstpurchasersofthelandtowhichthe

claimrelates,thecasessupportingthispropositionincludingNational

ProvincialBankLtdvAinsworth}Inthiscasetheequityinquestion

wastherightofawifetooccupationofthematrimonialhome,which

washeldtobepurelypersonal,exercisableonlyagainstthehusband.

Itissubmittedthatthedecisioncanbedistinguishedfromestoppel

claimsonthegroundthatawife’s equitytooccupybearslittle

relationtotheequityarisingfromproprietaryestoppel:thewife’s

equityisnevermorethanamerelypersonalclaimagainstthe

husband,derivingsolelyfromhermaritalstatus,andunlikean

estoppelequityitdoesnotrepresentanembryonicclaimtoa

proprietaryinterestinspecificproperty.LordUpjohnsaidthata

TaylorsFashionsLtdvLiverpoolVictoriaTrusteesCoLtd[1981]2W.L.R.576.

NationalProvincialBankLtdvAinsworth[1965]A.C.1175,[1965]2AllE.R.472.