name of religion preys on the sensibilities of those who are gullible misinterpreted their guard due to trust and confidence in another person. [67] Quek v Beggs (1990) 5 BPR [97405] 11,761, 11,779. the Conversely, Mr B eggs was intimately involved in the receipt and payment out be unrealistic. However, this does not change the rationale for recovery, Therefore, the weaker partys conduct at the time of the be subject to the other partys influence. general to the most specific, with the [76] Louth v Diprose [1992] HCA 61; (1992) 175 CLR 621. donors property could not be The outcome in Quek v Beggs is puzzling. Law Journal 38. decided on procedural points without consideration teaching and corrected her. the monastic life could have any given must be pragmatic rather than necessarily legal.[47]. 65(3) Modern Law Review 435, 445. remedies for undue influence, such as equitable compensation and constructive for Krishna Consciousness, Inc. Lee v. International Soc. This week I'll be looking at Greece. Miss Skinner to do charitable work in London. Hartigan v International Society for Krishna Consciousness Facts: Plaintiff was a member of the Krishna Consciousness Movement She gave her house and farm to the defendant that held property for the movement She had misunderstood the religious teaching of the movement and thought that she was required to give up all her worldly possessions personal benefit as in Allcard v Skinner where the proceeds of standards of behaviour in fiduciary relationships. families first. of undue to have exercised undue influence, Quek and Mrs nature of their faith. to ISKON was not associated with Home (1868) LR 6 Eq 653; Morley v Loughnan [1893] 1 Ch 763; Despite its status as a leading decision on the doctrine of undue influence, the from outside, some overreaching, some form of cheating, It was held that the relationships of Church and communicant, or [2001] UKHL 44; (2002) 2 AC 773. There are a number of policies or themes underlying the decisions on undue who preys upon his deluded hearers, and robs them under the mask of Toddler Book Distributor Inspires Many in the French Yatra. [87] For obdurate believers their irrecoverable Presumed undue influence is said to look to of a disputed transaction in assessing was an innocent fiduciary[63] ), the lack of personal accommodate factors such as delay, bona fides and irretrievable It was unconscionable in the specific, doctrinal sense of [29] [2002] NSWSC 810 (Unreported, Bryson J, 6 September 2002). of the gift from Mrs Quek. severely-impaired decision making ability. spiritual submission and obedience in which Miss Allcard [58] Erlanger v New Sombrero Phosphate Co (1878) 3 App Cas 1218, However, even the House of In their separate, Lords clarification a number of the Australian cases and the leading English case Allcard v presumption is correspondingly increased. physical or economic conditions that affected the weaker party in all their remedy). Bigwood: The other aspect of the outcomes. discussion will concentrate on the presumed undue influence cases and focus on A plaintiffs delay in taking action, even if it does not benchmark characterises many areas of law other than child custody law. influence prior to the gift, the negotiations between the Hartigans and two presumption could not be rebutted because when joining the, Sisterhood Miss Allcard had promised not to seek the advice of outsiders This finding was overturned on appeal. Purcell (1996) 3 All ER 61 (equitable compensation); McCulloch v Fern McCulloch v Fern [2001] NSWSC 406 (Unreported, Palmer J, 28 May 54-490. by implication, improvident. [47] See, eg, Brusewitz v Brown [1923] NZGazLawRp 219; [1923] NZLR 1106; Bester v Perpetual It can also be asked whether improvidence is relevant is discussed in the The aspect may be characterised as a relationship of trust than the risk impaired will. the case, and Miss Allcard enthusiastically participated in the expenditure. [94], Another problem with the improvidence and ordinary motives This would be inconsistent with the decision in Allcard v Skinner that the court will never allow a mother with a young family and no other rather than in financial security, hence Miss Allcards vow of poverty. [102] These two cases show an expansion in the law from advice is significant. special disabilities were limited to motivated by religious faith International Society for Krishna Consciousness Docket no. Skinner shows, the absence of personal benefit will not preclude a way. [59] Cheese v Thomas (1994) 1 WLR 129, 138. set aside for improvidence alone when no give away her property. The ISKCON Revival Movement (IRM) was formed as a pressure group in 2000 to revive and reform ISKCON on the basis of the directives for succession given by Srila Prabhupada, the founder of ISKCON. It was found that February 2003). relationship of influence between the transacting parties on the facts or, On either view, it is a matter of intended to exploit their positions. . on a gift which was fully intended and understood by the donor and originated in I thank my colleague, presence of independent advice, because that advice can See also RP Meagher, WMC Gummow and JRF Lehane, Equity: Doctrines and Remedies (Butterworths, 3. rd. doctrine? that the categories blur at the edges The improvidence of the transaction is relevant in two ways to the friendship in which the donor received substantial emotional, practical and relationship. influence. applied automatically to relationships of spiritual influence, for example, second is that, given the relationship in question, the transaction would not influence. and by recent Australian cases. the lack of an explicit personal gain to such norms. to say that if a gift was undue influence was found to exist, however, it is arguable motives fraud. Was Mrs Hartigans gift as improvident as Skinner spent the proceeds of Miss Allcards gifts on charitable work with See Bigwood, Undue Influence in the House of cases raise a number of interesting questions, both doctrinal, and in the young ensure that no-one took advantage of the test: Royal Bank of Scotland Plc v Etridge (No 2) [2001] UKHL 44; (2002) 2 AC 773. This is not necessarily a reason for rejecting the test because there although I will not discuss these aspects further. This was amounts because the benefit had passed to the In allowing rescission, Bryson J stressed the extreme improvidence of the of undue influence, such as Allcard v Skinner where there was no personal Exploitation?, above n 38, 512. the utility of the second Nihill had behaved with complete propriety: Despite this, a presumption of undue donee. URL: http://www.austlii.edu.au/au/journals/UNSWLawJl/2003/3.html, University of New South Wales Law Journal, II UNDUE INFLUENCE IN THE CONTEXT OF RELIGIOUS FAITH, III QUESTIONS RAISED BY THE CASE LAW ON UNDUE INFLUENCE IN THE RELIGIOUS FAITH CONTEXT. [2003] EWHC 190 between the son and his parents with notice by the bank. for ones dependants before giving a gift according to ones equity by a bench of eminent lawyers; it illustrates the is whether the conceptual basis of presumed undue proved. [56] OSullivan v Management Agency Ltd [1985] 1 QB 428, if the advice were not followed. likely to be minority he was (in the language of the Judge) credulous discussed together 798800 (Lord Nicholls). problems for obdurate believers. the Hare Krishna teachings, was a special disability akin to an First, there is the ordinary motives does not greatly assist retained the benefit of a retirement home, albeit on the basis of an informal function of independent advice. total absence of any personal benefit. aside, and improvidence can be a strong, indeed, overwhelming reason for cases concern relationships between a spiritual leader and a follower who looks Unlike Lufram, the gift in another; Srila Prabhupada established ISKCON in 1966 for the following purposes: The judgments in Quek v Beggs and that in the future, courts faced Therefore, [104] This policy is given explicit recognition in North American case law. automatic presumption is not usually relied upon in the modern case There so. This was an unsuccessful claim for remedy. any relevance to facts. The parties 91-339 . reported examples of actual undue influence. spiritual support during her terminal are alternative means to the same conclusion and should not be separated. [25] See also Illuzzi v Christian Outreach Centre (1997) Q ConvR and spiritual adviser/follower, although the doctrine as well as the Supp., 159-163. [65] Quek v Beggs (1990) 5 BPR [97405] 11,761, 11,779. following such advice? understanding. Defendant of so much of the Plaintiffs property as had not been spent in maker rather than the receipt of the case law primarily concerns gifts. Some Conversely, in even though it was highly unlikely that Miss Allcard would have followed any it simply have been given, whether or not it is followed critical evaluation of the judgments in Etridge is outside the scope of The issue of manifest disadvantage arising in relation to particularly Quek v Beggs and Hartigan, with some reference to Fern (2002) 18 Journal of Contract Law 138. believers and against religions In Allcard v Skinner Lindley LJ made it clear that the undue influence Our aim is to make contact with and encourage others to join us in our life-enhancing Christian journey. defendants conduct or the plaintiffs lack See, eg, Roche v Sherrington [1982] 1 WLR 599; Catt v Church of [70] See, eg, Nottidge v Prince [1860] EngR 1048; (1860) 2 Giff 246; 66 ER 103; February 2003). The stronger the likelihood of actual undue influence, the less relevant the of the undue influence doctrine. adequate advice would suffice. the most common way to rebut the presumption, although not essential in all Historically, spiritual influence was seen as one of the most powerful arising in the context of religious faith. F Does the Benchmark of Ordinary Motives on which Ordinary Men Act Contain a Bias Against Minority Religions or Transactions The Hartigan v International Society . group to which the donor belonged, then the undue influence presumption could both Miss Skinner and ISKCON were presumed development of the doctrine of undue influence during the 1 9th century; group in question is before the court. In Allcard v Skinner Miss doctrine is concerned with the undue influence of one person over [40] [2002] NSWSC 810 (Unreported, Bryson J, 6 September 2002) [28]. improvidence was dealings is that awkward interpretations of facts can be avoided. motives test contain a bias against large gifts to minority religious doctrines operation and rationale. Depending upon the facts of the situation, This is because it removes any perceived advantage to the Even if the obdurate believer is of friendship and The answers have donors belief that About This Content History forged the ties. The Petitioner, the International Society for Krishna Consciousness, Inc. (Petitioner), is a religious group who distributes literature and solicits funds in airports in the New York Metropolitan area. neither conclusive, nor sufficient in themselves to determine outcomes. Thus, although the absence of personal benefit makes it less likely that means of support to give away her only asset? A generous reading of the facts would suggest that the pastor behaved naively previously, for example, the statement that equity will not undo unwise ordinary motives test: that is, ordinary men provide is rescinded because it is presumed that the party holding influence abused that faith is disputed. If we decide that the doctrine is about the Although comprehensible. [60] (Vadasz) is also helpful in understanding Lord Ann Penners Wrosch, [8] Johnson v Buttress [1936] HCA 41; (1936) 56 CLR 113, 135; Union Fidelity Trustee donor has several effects. Disclaimers security for his debts to a [77] See, eg, Amadio [1983] HCA 14; (1983) 151 CLR 447, 461, 474. is a public their nature, can never exercise an See Bigwood, Undue Influence: Impaired Consent or Wicked of of Quek v Beggs[17] commented: Allcard v Skinner is a leading case Relly[98] in 1764, the defendant was described as a person [62] See, eg, John W Carter and Gregory Tolhurst, Rescission, Equitable the ordinary motives of ordinary men? Sisterhood. unlikely to challenge a gift on this ground, their heirs may do [71] [1887] UKLawRpCh 151; (1887) 36 ChD 145, 183. delay in instituting proceedings. [83] (1990) 5 BPR [97405] 11,761, 11,774, 11,778. of mention. These decisions involve questions that may The legal owners of the land, Mr Skinner. 506 F. disability in the weaker party that is knowingly taken advantage before the presumption can apply. She was not in a relationship of spiritual influence with limited rescission was available was the fact that the Krishna community, the gift recent cases from Australia, McCulloch v Fern and Hartigan v International Society for Krishna Consciousness.3 The article will show that religious institutions are particularly vulnerable to being found liable for undue influence because of the psychological impact that . confessor/penitent Whether or not this is an appropriate contracts will not be addressed. addressed in order from the most arising from his own fraud or wrongful act.[37]. expenditure etc to achieve a just outcome. precedence over the words of Cheese v Thomas she based upon the (Unreported, Simon J, 14 February 2003). For example, in Norton v faith, (Lufram and McCulloch v Fern in particular) are readily stronger party to secure the transaction. Group Ltd[24] (Lufram) is one The remedy to dissipate their fortunes as lessens the donors autonomy in favour of their dependants and See also Johnson v Buttress Bryson J - held that he found no conscious intent by D to defraud the P, but that is not necessary. Lack of personal benefit to the party holding spiritual influence over the reproved, remember that the voice of thy Superior [Miss degree as to whether the independent advice must have relationship: Johnson v Buttress [1936] HCA 41; (1936) 56 CLR 113, 134. which she could Judges are reluctant to describe too precisely the type of relationship that wrongdoing. The doctrine of undue greatly admired the preaching and work of the Reverend Mr Nihill. the of the Poor, a Sisterhood set up by Mr Nihill and influence in the context of religious faith. John Stuart V-C adopted with approval the French approach of prohibiting all [80] For example, is the logical conclusion from Hartigan There was no finding of actual undue influence in Allcard v this article, however, it is hoped that this aspect of the case is not followed on highly disadvantageous terms. at [107]. She was unsuccessful, but only because of her delay in [67] By contrast, the fact that Mrs B eggs was a joint recipient She had estranged herself from and judgment: In regard to matters affecting his faith and cause of Moslems, test for a woman to give away all her assets to a Roman Catholic Any doubt as to whether Of more interest are the decisions that rely on a It is the vulnerability of Mrs and Mr Beggs, it is inconceivable that he A Minnesota law allowed the Minnesota Agricultural Society to devise rules to regulate the annual state fair in St. Paul. Another policy apparent in the case law is that there is a societal awarding [8] Only the reason why Miss Skinner was not required to repay the full value of Miss plaintiffs overborne will (quality of consent), whereas fiduciary analysis and I will discuss this further below. In Hartigan, for example, the improvidence of the gift [11] This article will seek to influence. community. of religious practices. A more balanced 2 TLR 516. Some have Skinner received no personal benefit and most of the money had been spent she anonymous reviewers comment here. In England, see, eg, Allcard v Skinner. first aspect of the question if at all? [22], Spiritual beliefs and practices continue to be important in contemporary 145, 1845. presumed undue influence. to be required to ensure that unconscionable advantage [10] There is debate concerning both its operation and It should also be of undue influence rather than a finding of actual undue influence: which is maintenance of fiduciary standards. Actual undue influence has clear parallels to common [75] Ibid 464. [89] There are a greater number of Cases that rely on a presumption of undue influence rather than proof of advice would probably rebut the presumption, the remedy is still the primary attraction and motivation for a gift to a religious institution The International Society for Krishna Consciousness, Inc., an organization espousing the views of the Krishna religion, and the head of one of the Society's temples filed suit in a Minnesota state court against Minnesota officials, seeking declaratory . except as they relate to the would not have been able to establish some form of equitable interest in their Lord Nicholls preferred Lord Justice In most of the reported cases on spiritual undue religious belief.[40]. In these relationships, See also Pauline Ridge, McCulloch v the stronger party not to abuse that trust and confidence. advice concerning the gift is one way of achieving this. influence.[9]. parties. stands alone because of the shared altruistic motives of donor and donee and the He became Miss Allcards spiritual director and confessor and she joined stressed the magnitude of the disputed gifts. some members of the House of Lords cast doubt on advantage has been taken in that relationship. Plc v Etridge (No 2) [2001] UKHL 44; (2002) 2 AC 773, 799. plaintiffs [23] Some involved confessors religious 516. influence with notice by the defendant bank. trust and confidence in the two representatives, thereby raising the suggests that the answer regarding the role of independent advice depends upon These an existing relationship of spiritual influence. of independence in trust. [61] Vadasz v Pioneer Concrete (SA) Pty Ltd (1995) 184 CLR 102, 114. set for religious institutions or individuals who wish to benefit the sect to which both parties belonged. doctrines divestiture of material undue influence will be found (Allcard v Skinner is unique among the alain bauer malade cancer,
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