Estoppel by representation

What does estoppel by representation mean? Is estoppel by representation of fact a cause of action? What is a reliance based estoppel? Can no defense to the estoppel be raised?

It is similar to the concept of deterimental reliance. Spencer Bower defines estoppel by representation of. It claims that the person made a representation , intending another to reasonably rely on it, and out of fairness, it should be upheld.

A’s conduct is such that a reasonable person would understand that it was intended to be acted. Thereafter, they forged transfers into other names chosen by the fraudsters so that they received dividends. Finally the fraudsters sold ‘their’ shares and were paid the sale proceeds in the usual way. To perpetrate this frau two fraudulent documents had to be produced. A transfer to the innocent incoming shareholder.

Lindsay J identifie correctly, that this fraud relied on a company’s procedure for verifying a member’s change of address not being complied with due to the inertia of a shareholder who failed to respond to a letter seeking to verify a notice of change of address. See full list on withersworldwide. The share certificates and the stockbrokers’ actions in selling the shares established the representations made by the Companies and the stockbrokers reliance upon it. Detriment suffered by the stockbrokers loss was another matter, as the Companies had suffered the loss (by compensating the original shareholders) while the stockbrokers had not suffered any such loss. In that event the stockbrokers would become liable to the Companies on the implied indemnity.

The Court held that the stockbrokers’ estoppel argument succeede thus putting the stockbrokers in the position they would have been in had the representation in the false share certifications been true. Had Cadbury Schweppes or Unilever PLCnot acted so sympathetically to the original shareholders, and the duped individual shareholders had instead brought claims against the stockbrokers and the Companies, the stockbrokers’ estoppel argument would not have stood up against the original shareholders. It can be used to prevent a plaintiff denying that a statement or set of facts are true where they had previously represented that they were. Paddon-Hughes Development Co.

Estoppel is a judicial doctrine that exists in various common law jurisdictions. Its purpose is to achieve equity in contractual matters by preventing (estopping) a person from going back on their word. Estoppel can be argued where one party has relied on a promise or representation made by another party and suffered a detriment as a result.

A party who has a duty to make a statement but fails to make one is in effect making a statement by its silence. A representation can be made either by words or conduct in equitable estoppel. The party making the representation intends for the other party to rely upon such a representation.

An important aspect of the latter task has been the fundamental re-examination of the role of estoppel by representation as a defence to restitution. Register and Subscribe now to work with legal documents online. Two recent cases in the Court of Appeal, Scottish Equitable plc v. National Westminster Bank plc v. Somer International (UK) Ltd.

The principle of estoppel is in place to protect a person against a loss suffered as a result from a reliance on a promise or representation. Specific forms of the estoppel doctrine include: Promissory Estoppel. If his defence was upheld he really established that the plaintiff had not established a cause of action. Instantly Find and Download Legal Forms Drafted by Attorneys for Your State.

A form of Estoppel in which one party acts to his detriment on a misrepresentation of fact by another. It does not refer to misrepresentations of points of law, not to promises of future action (see: Promissory estoppel ). The concept of estoppel embraces notions of fairness and reasonableness that in reliance upon strict legal rights being otherwise overridden. A defendant who raises estoppel as an affirmative defense alleges that the plaintiff's own actions prevent it from seeking a remedy in court. This is the doctrine of Estoppel.

Essentially, equitable estoppel is a method of preventing someone from going back on his word in a court of law.