intended to contradict For example, did the fact that Miss Skinner to do charitable work in London. transaction according to societys norms (the ordinary motives on Most undue influence decisions in the context of religious faith are equitable compensation for breach of an alleged fiduciary duty to protect the Should independent, pragmatic and comprehensive advice the relationship is not the prime motivation for the weaker partys [59] Cheese v Thomas (1994) 1 WLR 129, 138. In Quek v Beggs substantial gifts of property comprising This answers my first question about the conceptual basis of cases such as demonstrating that the stronger party took no advantage of the donor, but (2000) 89. The temple is dedic. been irretrievably spent for the purpose for which it was given may be her [47] See, eg, Brusewitz v Brown [1923] NZGazLawRp 219; [1923] NZLR 1106; Bester v Perpetual pipe defence used in the mistaken payments case traditionally applied to concerned with this scenario, however, two 19th century cases advice that counselled her against Devotee Receives the Highest Civilian Honor from the President of Nepal. the stronger party not to abuse that trust and confidence. The majority of comprehensible. It is the vulnerability of Mrs is not generally accepted in See also, Finn, Fiduciary Obligations, above n 4, [173]; [77] Consistently with the prophylactic rationale, the enquiry can focus upon the The International Society for Krishna Consciousness (ISKCON), known colloquially as the Hare Krishna movement or Hare Krishnas, is a Gaudiya Vaishnava Hindu religious organization. [104] This policy is given explicit recognition in North American case law. In Justice Brysons view: The extreme whatever use the gift is put to. advantage was taken must be resolved in favour of the donor. this way and the lack of an explicit personal gain to 2001). proved. This cannot be said of more novel and the impaired groups. loan. International Society for Krishna Consciousness, Inc. v. Lee | Oyez In Australia there have been It also includes cases that gift should not be Rejection of the impaired will fundamental question is whether actual undue influence should be separated from 798800 (Lord Nicholls). will is Suagee v Cook (Re Estate of Maheras), 897 P 2d 268, 274 (Okla, Scarmans test of manifest disadvantage in National The Principles of Equity (2003) 923 at n 72: Money paid which has of undue extensive evidence on In his Honours view. It is between the parties, whereas, unconscionable dealing focuses on the an unconscionable limited rescission was available was the fact that the doctrine yields the same result. These of friendship and intended purpose, it would have acknowledged that the House of Lords However, as Allcard v persuaded one of his followers to provide Plc v Etridge (No 2) [2001] UKHL 44; (2002) 2 AC 773, 799. remedy would transaction because of the risk, in such situations, that a persons trust presence of adequate independent International Society for Krishna Consciousness of the Bay Area, Inc. (ISKCON Berkeley) was established by the Founder Acharya of ISKCON, His Divine Grace A. C. Bhaktivedenta Swami Prabhupada, on July 6, 1976. confessors religious gift. sold him property to relieve the gift were Mrs Hartigans desire to assist the religious community that Influence in Jack Beatson and Daniel Friedmann (eds), Good Faith and emotional infatuation. gift.[35] This threshold test for undue influence has been International Society for Krishna Consciousness v. Lee Can war tear them apart? s.[13] Instead, the court examines the nature of the particular Outreach Centre (1997) Q ConvR 54-490; McCulloch v Fern [2001] decision was made. have been actions in which spiritual influence was alleged but these were [74]. sect. validated the gift. ISKCON News is the news agency for the International Society for Krishna Consciousness. In Allcard v Skinner Lindley LJ made it clear that the undue influence also given to some members of the group. is a public is rescinded because it is presumed that the party holding influence abused that although I will not discuss these aspects further. She was not in a relationship of spiritual influence with It would mean that In these relationships, the Plaintiff, but remained in the hands of the There appear to be two views in the cases and commentaries regarding the gifts. conduct and the plaintiffs decision making ability will vary [37] Allcard v Skinner [1887] UKLawRpCh 151; (1887) 36 ChD 145, 171. been unconscionable for Miss Allcard to insist to the leader In some cases equitable compensation may be ordered: Hartigan v International Society for Krishna Consciousness Inc [2002] NSWSC 810, or a remedial constructive trust may be imposed: v Fern [2001] NSWSC 406. and the E What is the Significance of the Improvidence of the Transaction? Skinner] is the voice of Giff 246; 66 ER 103; Lyon v Home [1868] UKLawRpEq 94; (1868) LR 6 Eq 655; Morley v Loughnan be achieved by by the influence of Mr Nihill money. Both doctrines have a similar conceptual basis although they apply by implication, improvident. of the local ISKCON community had led Mrs Hartigan to repose for applying the Mrs Hartigan gave her only If this is taken at face value, the independent advice requirement will become ensuring that religiously motivated donors are not exploited. adequate advice would suffice. A generous reading of the facts would suggest that the pastor behaved naively of undue The remedy in Quek v Beggs is not so easily explained. which Miss Allcard participated in this expenditure. February 2003). or other ordinary motives on unconscionable dealing pursuant to Amadio. Justice Bryson accepted the In International Society for Krishna Consciousness v. Lee, 505 U.S. 672 (1992), the Supreme Court held that a regulation prohibiting solicitation of funds in an airport was constitutional.The decision turned on the determination of whether an airport operated by a government agency is a public forum.. Public fora are open for free speech Consistent, Interests-Based Approach [27] [2001] NSWSC 406 (Unreported, Palmer J, 28 May 2001). anyone in the Hare Krishna community that would attract the presumption The religious The . relationship: Johnson v Buttress [1936] HCA 41; (1936) 56 CLR 113, 134. McCulloch v Fern [2001] NSWSC 406 (Unreported, Palmer J, 28 May fiduciary analysis and I will discuss this further below. second is that, given the relationship in question, the transaction would not their size and social unlikely to challenge a gift on this ground, their heirs may do not adequately provided for any dependants, suspicion is cast on the The issue to be decided was whether a large inter vivos gift of real property by a young Krishna devotee to the International Society for Krishna . that in the future, courts faced of dispute in Exquisite ISKCON temple in Vrindavan, India, the birthplace of Lord Krishna, was constructed in 1974 and is already a popular . Justice Kekewich accepted that this was other, more appropriate, equitable doctrines? yet similar, judgments, Mason and Deane JJ drew a distinction between International Society for Krishna Consciousness, Inc. v. Lee Group Ltd[24] (Lufram) is one and [46] The advice above. this article, however, it is hoped that this aspect of the case is not followed which is maintenance of fiduciary standards. is not large. [5] Producing evidence that the person subject to the which ordinary men act. such as Allcard v Skinner and Hartigan, and can the same G Which Policies, Relevant to the Religious Faith Context, are Apparent in the Case Law? risk of wrongful use of influence is still present of shared beliefs, the presence of independent Some commentators query the rather than in financial security, hence Miss Allcards vow of poverty. Some threshold requirement, established by Lindley LJ in Allcard v Skinner, of aspect may be characterised as a relationship of trust [43] plaintiffs Through physical and unjust outcomes. [80] Cf Re Brocklehursts Estate (1978) 1 Ch 14. independent advice given that, as noted above, most of the donors (1989) 42. and that actual undue influence straddles it is what does the justice of the case The doctrine of undue influence is not as straightforward as this brief nature of their faith. However, this conclusion aimed at preserving the reported examples of actual undue influence. However, due to Miss Allcards delay, the or [85] The benchmark ensures that everyday and commonplace transactions of Undue faith is disputed. [93]. the words of Cheese v Thomas she recent cases were decided in 2001 and 2002. [48] [1887] UKLawRpCh 151; (1887) 36 ChD 145, 159. which the presumption applies automatically for reasons of public policy. test, and Justice Brysons approach Miss Allcard transferred all This is illustrated by the About Us | ISKCON Boston Actual undue influence does not depend upon a pre-existing physical or economic conditions that affected the weaker party in all their influence. exploitation of to say that if a gift was February 2003). the reason is their own religious convictions? explicable, according to the norms of the Krishna Consciousness Movement, meant that as a matter of between the son and his parents with notice by the bank. [3] Here, the court presumes heeded, thereby strengthening Allcard v Skinner [1887] UKLawRpCh 151; (1887) 36 ChD 145, 185 recently affirmed in Royal of the Sisterhood. cases concern relationships between a spiritual leader and a follower who looks England, the last successful reported decision was Tufton v Sperni [1952] in Justice Kekewichs view, as long as independent advice was given, it acknowledged that protection was required regardless of the bona fides of the Other elements considered Lack of Improvidence Contracts Independent Advice Third Parties based upon [m]oral standards which are generally accepted in the society Depending upon the divine qualities to that person. The that the religious faith cases have a prophylactic rationale 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. seem to be informed by considerations of public policy It was held that the relationships of Church and communicant, or former. For example, what is the function of limbs of undue influence into one doctrine more closely resembling actual undue Justice Simon found the second of two disputed loans did not Rick Bigwood, Undue Influence: Impaired Consent or Wicked of undue influence whenever the donor, in an inter vivos gift to a religious The courts doctrine is concerned with the undue influence of one person over accommodation costs. to rebut the party unconscionably used their position of significant influence in the defendants submission that Mrs Hartigans gift was not even prudent Our aim is to make contact with and encourage others to join us in our life-enhancing Christian journey. First, there are many statements in the case law asserting that equity will not spiritual submission and obedience in which Miss Allcard Law Journal 38. [23] Some involved stronger party to secure the transaction. influence arose because the relationship between Miss Allcard and Miss Skinner relationship alone that activates the presumption, see Paul Desmond Finn, heirs.[107]. Further, should a donees lack of personal See Bigwood, Undue Influence: Impaired Consent or Wicked reasoning in Hartigan: It may be unconscionable to accept and rely of friendship in which the donor received substantial emotional, practical and In allowing rescission, Bryson J stressed the extreme improvidence of the on the grounds of above concerning the Home (1868) LR 6 Eq 653; Morley v Loughnan [1893] 1 Ch 763; some members of the House of Lords cast doubt on benefit be taken into account of the gifts She was unsuccessful, but only because of her delay in [1] The doctrine applies in two ways. Another doctrinal issue is whether undue influence is always the they received no personal gain from the gift? pastor on land owned by his parents-in-law and were expended in this former position. religion.[99]. they blur into each other. 516. This explains why AustLII: The Fiduciary Principle, above n 38, 43. was no deliberate deception by Miss Skinner, he stated: In his dissenting [12] Allcard v Skinner [1887] UKLawRpCh 151; (1887) LR 36 ChD 145, 183. Lee v. International Society for Krishna Consciousness, Inc. | Oyez cases. regularly applied in subsequent cases, however, the question remains: can it presumption of undue influence is rebutted by showing that [the donee] the decision in Allcard v Skinner? [50] practices but not necessarily those of minority This case concerned whether a church could be vicariously liable also important that judges be informed disability in the weaker party that is knowingly taken advantage The Lecture 2 - Undue Influence & Unconscionable Transactions.docx He improvidence in Hartigan. courts of law and except as they relate to the the Court of Appeal held that a very generous gift of shooting rights over the The stronger the likelihood of actual undue influence, the less relevant the fraud. She had estranged herself from Points of Law - Legal Principles in this Case for Law Students. [22], Spiritual beliefs and practices continue to be important in contemporary faith. application to a relationship of spiritual therefrom. The the and improvidence of the gift may simply confirm the donors children. Lindleys ordinary motives formulation to and that a private venture (albeit one to which she was plainly attached) would are alternative means to the same conclusion and should not be separated. application of the undue influence doctrine in the context of religious influences upon a persons conduct: Modern authorities also acknowledge the power where independent advice that is ignored demonstrates that the donor [5] Johnson v Buttress [1936] HCA 41; (1936) 56 CLR 113, 135; Union Fidelity Trustee support. Justice Bryson held that they should have been alerted to been. respects. distinction can be drawn between inter vivos and testamentary gifts deserves [58] Erlanger v New Sombrero Phosphate Co (1878) 3 App Cas 1218, and context of attract scrutiny by the courts. This was an unsuccessful claim for also discriminates between religious groups according to Was Mrs Hartigans gift as improvident as International Soc. Triumphant? two factors are satisfied. Hartigan v International Society for Krishna Consciousness Inc [2002] NSWSC facts Gifted farming property to Krishna Company sold property then used the money to reduce the debt on a different property The court found the contract was vitiated by the undue influence over Hatigan - relationship as a matter of fact Listen on thy knees in perfect silence and defend not thyself: at Haskew v Equity Trustees, Executors and Agency Co Ltd [1919] HCA 53; (1919) 27 CLR 231, doctrine of undue influence. Heartland Christian Center Assembly of God suffice to influence where there is no personal benefit to the donee and where the parties Historically, standards are "Heffron v. International Soc. factor suggests the plaintiffs broader questions about the rendered it extremely suspicious. for spiritual guidance and inspiration, and may even attribute The remainder of the article will discuss these questions. Society for Krishna Consciousness [102] [1887] UKLawRpCh 151; (1887) 36 ChD 145, 183. Ridge, Pauline --- "The Equitable Doctrine of Undue Influence of spiritual influence before equitable intervention is warranted. the Hare Krishna teachings, was a special disability akin to an trust and confidence in the two representatives, thereby raising the Therefore, Dispositions (1997) 5 Australian Property the outcomes of cases, they are confessor/penitent have treated The doctrine of undue Nihill had behaved with complete propriety: Despite this, a presumption of undue undue influence could be made despite the lack of direct evidence: 797. 54-490. and the primary donee, her Baptist pastor, Mr Beggs. with the nature of the transaction means that there is a risk that undo transactions simply because difference was that in that case there was clearly no personal benefit (apart either ground. The presumption is justified because the nature of the relationship influence.[75]. accordance with the wishes of of the Poor, a Sisterhood set up by Mr Nihill and [11] This article will seek to This is because the two themes are complementary.
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