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Baird Textile Holdings Ltd v Marks & Spencer plc [2001] EWCA...

ResourcesBaird Textile Holdings Ltd v Marks & Spencer plc [2001] EWCA...

Facts

  • Baird Textile Holdings Ltd supplied goods to Marks & Spencer plc under a longstanding supply arrangement.
  • Baird claimed Marks & Spencer’s conduct implied an ongoing, stable partnership, on which Baird relied to its detriment.
  • No formal written contract existed detailing the duration or conditions of the relationship.
  • Baird sought to found a proprietary estoppel claim, arguing that M&S’s conduct amounted to a promise of continued business.

Issues

  1. Whether proprietary estoppel can be established based on implied or vague promises without specific and definite terms.
  2. Whether Baird’s reliance on Marks & Spencer’s conduct, leading to alleged loss, satisfied the requirements for proprietary estoppel.
  3. Whether loss from reliance must be directly attributable to a precise promise or assurance.
  4. Whether the doctrine of proprietary estoppel can prevent unfairness in the absence of clear assurances.

Decision

  • The Court of Appeal held that proprietary estoppel requires a clear and definite promise or assurance.
  • Implied or vague understandings of a relationship’s continuation were not sufficient to found an estoppel claim.
  • The court found that Baird had not received a sufficiently precise promise from Marks & Spencer regarding future business.
  • Baird’s claim failed as the reliance and loss alleged could not be directly linked to a definite assurance by Marks & Spencer.
  • Proprietary estoppel requires a definite and precise promise or assurance, not merely open-ended or implied understandings.
  • Loss from reliance is only relevant where it stems directly from acting on a specific promise.
  • The doctrine operates to prevent unfairness but does not extend to cases where promises cannot be clearly established or linked to loss.
  • Written contracts are not always necessary, but the promise or assurance must be sufficiently certain to support a legal remedy.
  • The court distinguished successful estoppel claims, such as in Gillett v Holt, Crabb v Arun District Council, and Thorner v Major, on the basis that clear and actionable promises were made in those cases.

Conclusion

The Court of Appeal in Baird Textile Holdings Ltd v Marks & Spencer plc determined that proprietary estoppel cannot be founded on vague or implied promises; only specific, definite assurances linked directly to reliance and loss will satisfy the doctrine’s requirements.

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