Crabb v Arun District Council [1975] EWCA Civ 7 is a leading English land law and contract case concerning "proprietary estoppel".
Lord Denning MR affirmed that where agreements concern the acquisition of rights over land, there is no need for both parties to provide a consideration for upholding the bargain.
Lord Denning MR held that the promise could be enforced, and that a right of access over ADC's land be made way for.
We had occasion to consider it a month ago in Moorgate Mercantile v Twitchings [1975] 3 WLR 286 where I said that the effect of estoppel on the true owner may be that "his own title to the property, be it land or goods, had been held to be limited or extinguished, and new rights and interests have been created therein and this operates by reason of his conduct - what he has led the other to believe - even though he never intended it.
If I may expand that, Lord Cairns said: "It is the first principle upon which all Courts of Equity proceed", that it will prevent a person from insisting on his strict legal rights - whether arising under a contract, or on his title deeds, or by statute - when it would be inequitable for him to do so having regard to the dealings which have taken place between the parties, see Hughes v Metropolitan Railway Co (1877) 2 AC 448.
In Bamsden v Dyson (1866) LR 1 HL at page 170 Lord Kingsdown spoke of a verbal agreement "or what amounts to the same thing, an expectation, created or encouraged."
In Birmingham & District Land Co v The London & North Western Railway (1888) 40 Ch D at page 277, Lord Justice Cotton said that ".... what passed did not make a new agreement but what took place .... raised an equity against him."
And it was the Privy Council who said that ".... the Court must look at the circumstances in each case to decide in what way the equity can be satisfied" giving instances, see Plimmer v City of Wellington Corporation (1884) 9 AC 713-4.
In Inwards v Baker (1965) 2 QB 29, it was held that, despite the legal title being in the plaintiffs, the son had an equity to remain in the bungalow "as long as he desired to use it as his home."
In Siew Soon Hah v Wang Tong Hong [1973] AC 837, the Privy Council held that there was an "equity or equitable estoppel protecting the defendant in his occupation for 30 years".
In Bank Negara Indonesia v Philip Foallm (1973) 2 Malaya Law Journal the Privy Council held that, despite the fact that he had no protection under the Rent Acts, he had an equity to remain "so long as he continued to practise his profession."
The Judge found that there was "no definite assurance" by the Council's representative, and "no firm commitment", but only an "agreement in principle", meaning I suppose that, as Alford said, there were "some further processes" to be gone through before it would become binding.
Seeing that they knew of his intention - and they did nothing to disabuse him but rather confirmed it by erecting gates at point B - it was their conduct which led him to act as he did: and this raises an equity in his favour against them.
In the circumstances it seems to me inequitable that the Council should insist on their strict title as they did: and to take the highhanded action of pulling down the gates without a word of warning: and to demand of Crabb £3,000 as the price for the easement.
If the matter had been finally settled in 1967, I should have thought that, although nothing was said at the meeting in July 1967, nevertheless it would be quite reasonable for the Council to ask Crabb to pay something for the access at point B, perhaps - and I am guessing - some hundreds of pounds.
And at the present time, it seems to me that, in order to satisfy the equity, Mr. Crabb should have the right of access at point B free of charge without paying anything for it.
In such a case I think it is now well settled law that the Court, having analysed and assessed the conduct and relationship of the parties, has to answer three questions.
Lord Kingsdown refers in fact to those doubts in a passage, which I need not quote, at page 171 of his speech in Ramsden v Dyson.
But there can be no doubt that since Ramsden v Dyson the Courts have acted upon the basis that they have to determine not only the extent of the equity, but also the conditions necessary to satisfy it, and they have done so in a great number and variety of cases.
In January 1969 the defendants, for reasons which no doubt they thought good at the time, without consulting the plaintiff, locked up his land.
It has involved him in loss, which has not been measured; but, since it amounted to sterilisation of an industrial estate for a very considerable period of time, it must surpass any sort of sum of money which the plaintiff ought reasonably, before it was done, to have paid the authority in order to obtain an enforceable legal right, I think therefore that nothing should now be paid by the plaintiff and that he should receive at the hands of the Court the belated protection of the equity that he has established.