Hypotheticals by Manny Wood. Published in the Coffs Coast Advocate on 19 November 2016.
Daniel grew up on a farm owned by his parents Geoff and Barbara.
Daniel worked full-time on the farm and at the age of 23, Geoff told him “one day this will all be yours”.
At the age of 30, Daniel complained to his father that his weekly wage of $400 per week was not enough pay for him and his wife to stay on the farm.
Geoff then told Daniel that if that was the case, he would only receive an equal share of the farm, with his two siblings.
Daniel was furious that his father had gone back on his promise and he and his wife move away. Daniel obtains a well-paid job.
Daniel sends a letter to his parents, enclosing a bill for work he had done on the farm. The bill is never paid.
A few years later, Geoff’s marital relationship with Barbara breaks down as does his relationship with his other children.
During the course of a messy divorce, Daniel sides with his father and loans him money to pay his legal costs.
An agreement is reached whereby Barbara and the other two children receive a substantial settlement.
Geoff makes a will that leaves his whole estate to Daniel, who again believes that he will inherit the farm.
Geoff continues to live on the farm and Daniel again performs extensive work during the course of the following five years.
One week before he dies, Geoff makes a new will, leaving the whole of his estate to Barbara.
The Supreme Court ultimately finds that Geoff was under no contractual obligation to make any special provision for Daniel under his will. The court also finds that any representations that he made to Daniel did not give rise to a proprietary interest in the farm.
The court did however award Daniel approximately $300,000 by way of compensation for unjust enrichment, primarily for work done for his father’s benefit and a smaller allowance for monies that he gave to his father.
Geoff’s estate pays 60% of Daniel’s substantial legal costs.
You can contact Manny at manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
