Thorner v Major [2009]

1. Facts

• David Thorner (C) worked on Peter Major's (D) farm for nearly 30 years without payment.

• C was led to believe he would inherit Peter’s land.

• Following a falling out, C did not inherit the estate.

• C argued that there was an implied agreement that he would inherit the property.

• The estate had previously given him a bonus for death duties (taxes on inheritance), which C claimed demonstrated Peter's commitment to passing on the property.

2. Outcome

• The House of Lords (HoL) ruled in favour of C, affirming that an implied agreement existed.

• The court found that the nature of the relationship and the conduct of the parties supported C’s claim.

3. Impact and Analysis

• Objective Test for Promissory Estoppel:

◦ Lord Hoffmann established an objective test that evaluates the claimant’s reasonable understanding of the defendant’s conduct.

◦ This test considers whether the promise, though not explicitly stated, was clear and unequivocal in the context of the parties' relationship and conduct.

• Lord Walker’s Approach:

◦ Emphasised the need for the promise to be "clear and unequivocal" but also highlighted the importance of context.

◦ Recognised the taciturn and undemonstrative nature of the parties, which influenced how their interactions were interpreted.

• Lord Scott’s Dissent:

◦ Argued against applying promissory estoppel due to the lack of explicit evidence that C relied on D’s remarks.

◦ Suggested that the absence of clear reliance undermined the application of promissory estoppel.

• Holistic and Contextual Analysis:

◦ The court took a holistic approach, considering the long-term relationship and the practicalities of the working arrangement.

◦ The assurance given by Peter, even if not explicitly articulated, was deemed to be taken seriously and relied upon in the context of their relationship.

• Normative Promissory Weight:

◦ McFarlane/Sales noted that Thorner established a normative weight for promises, focusing on the seriousness rather than clarity.

◦ This case reflects a move towards contextualised objectivity, where the seriousness of the promise and the relationship between parties play a crucial role in determining enforceability.

• Slippery Slope into Subjectivity:

◦ While the objective test helps maintain some level of consistency, it also introduces a degree of subjectivity, particularly when interpreting the seriousness and context of implied promises.