If you have worked on the family farm all your life in expectation of inheriting it as promised by your parents, what happens if they change their mind or leave it to someone else in their will?
As in many families, the farm is not just where they work, it is their home, their heritage, their future; being a farmer is their life. If you have spent years (or decades) working on the family farm based on a promise that one day you will own it, what can you do if that promise is broken?
You may have a legal claim known as 'proprietary estoppel', and it could help secure what has been promised to you.
What is the most common scenario leading to a proprietary estoppel claim?
You may have worked on the family farm from a young age, helping during school holidays and leaving school early to work on it; or specifically going to agricultural college with the intention of returning to the farm. It is common for farmers with proprietary estoppel claims to have given up other jobs with better pay and benefits, to have worked long hours on the farm, taken little or no pay, and made personal sacrifices such as relocating to live on or near the farm, on the promise that “One day, this will all be yours.”
Proprietary estoppel claims are often triggered by parents changing their wills (which sometimes comes to light during their lifetime); the unexpected sale of all or part of the farm; a falling out, resulting in them refusing to honour the promise they made; or discovering that after the parents' deaths, the farm was not gifted as promised and, instead is to be divided among all the siblings even if their involvement has been minimal.
This is where proprietary estoppel may help to secure the farm which you had been promised.
What type of cases do you deal with?
Although many proprietary estoppel cases have gone to Court, the majority settle before trial. We have cases which have settled early on, at mediation while the Court proceedings have been ongoing, and on the first day of trial. We have dealt with estoppel cases involving small farms, shares in a family businesses where land is held in a company, farms where only one sibling is actively farming the farm, and cases where both parents are still alive, but have broken their promise during their lifetime.
Recent legal decisions: what are the Court’s latest judgments?
The Courts are continuing to intervene where promises made to people have been broken, and where they can prove the other elements of a proprietary estoppel claim. Three recent cases that show how proprietary estoppel works in real life are:
A son worked for decades on the family farm, based on repeated promises he would inherit it. When the will excluded him, he took legal action. The Court found that a clear assurance had been made, and he had relied on it to his detriment. He was awarded a substantial interest in the farm.
This case involved two siblings in a farming family. One had stayed on and worked the land full-time for over 30 years after being told repeatedly that “the farm will be yours.” When the land was left equally between both siblings, the Court stepped in. The judge ruled that the promises, sacrifices, and reliance were enough to justify giving the claimant sole ownership of key farm assets, rather than simply a share. This case reinforces that equal is not always fair when someone has given up decades of opportunity based on a promise.
Cleave & Anor v Cleave (2024)
In this case, the claimants (son and daughter-in-law) had made substantial contributions to the property and relied on assurances that they would have an interest in it. When the relationship between the parties broke down, the mother denied any such interest. The Court found in favour of the son and daughter-in-law, holding that the mother’s conduct gave rise to a reasonable expectation of rights in the property, and that it would be unconscionable to deny those rights.
What can you do?
If the scenario sounds familiar, here are some practical steps:
- Keep records: Texts, emails, or letters that show the promise all count. Consider if there are any witnesses who have heard the promise made, or can speak about the promisor's future plans for the farm. Independent witnesses typically carry more weight than family members with a vested interest.
- Note your detriment and sacrifices: For example, missed opportunities, unpaid work, improvements you have made to the land or home.
- Get legal advice early: the longer you leave it to take action after you know the promise has been broken, the more likely the opponent will argue that your claim should not be dealt with due to delay. If a sale of the farm or farmland, which has been promised to you, is imminent, you should address it as quickly as possible.
Our expertise
Proprietary estoppel claims can be complex but we are very experienced in dealing with these types of claims and this, combined with our agricultural experience, gives you the reassurance you need to know you are in safe hands. If you think you are entitled to the family farm and that promise has been broken by your parents, or if they have now died and their will gives all or part of the farm to another member of the family, we can talk through your situation and help you understand your rights.
The information provided in this article is provided for general information purposes only, and does not provide definitive advice. It does not amount to legal or other professional advice and so you should not rely on any information contained here as if it were such advice.
Wright Hassall does not accept any responsibility for any loss which may arise from reliance on any information published here. Definitive advice can only be given with full knowledge of all relevant facts. If you need such advice please contact a member of our professional staff.
The information published across our Knowledge Base is correct at the time of going to press.
