Svenson v Payne [1945] HCA 43

ABC ine v Big Fights Inc a) 46 1PR

71 C.L.R.] OF AUSTRALIA.

[HIGH COURT OF AUSTRALIA.]

SVENSON . : : - ' 3 : . APPELLANT ; DEFENDANT, AND PAYNE AND ANOTHER . : ' . RESPONDENTS. PLAINTIFFS,

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES.

Estoppel—Hotel—Leuse by life tenant-trustee under will—Term in excess of trustee's power granted by will—Death of trustee—Claim by remainderman that lease be declared void—Repairs and renovations to hotel—Hxpenditure of large sums by lessee—Knowledge, at material times, of remainderman of details of lease, expen- diture and her rights—Acquiescence—Appropriate remedy.

A life tenant, who was also the trustee under the will, granted a lease of certain hotel property to the licensee who, on the faith of the lease, agreed to, and did, expend a considerable sum of money upon improving the property in accordance with statutory requirements, The licensee did not search against the title of the life tenant. 'The term of the lease exceeded the period authorized by the will but the remainderman, the daughter of the life tenant, although aware of the negotiations, was in no sense a party thereto and was not regarded by either the life tenant or the licensee as interested in the matter. After the lease had been executed and before any money had been expended, the remainderman became aware of the life tenant's limited powers of leasing, but refrained during his lifetime from taking any action in the matter, being of the belief that the life tenant, her father, was entitled to exercise complete control during his lifetime and that there was nothing which she could do. After the death of the life tenant, the remainderman applied for equitable relief,

Held that, in the circumstances, the remainderman was not estopped by her conduct and that the lease was void and should be cancelled without compensa- tion to the licensee.