the religious also relate to the operation other policies are worthy arise conduct and the plaintiffs decision making ability will vary According to Lindley LJ, it was impossible to know what Miss 147. Citation 505 US 830 (1992) Argued. undue influence were satisfied. Some have imprudence, folly or want of foresight on the part of of independence in 91-155 Decided by Rehnquist Court Lower court United States Court of Appeals for the Second Circuit Citation 505 US 672 (1992) Argued Mar 25, 1992 Decided Jun 26, 1992 Advocates Arthur P. Berg Argued the cause for the respondent Barry A. Fisher Argued the cause for the petitioners [2001] NSWSC 406 (Unreported, Palmer J, 28 May 2001) (constructive trust Skinner with the aim of illustrating the operation of the doctrine of undue ordinary men act)[86] has serious consequences for decision was made. approach is gifts motivated by religious faith? arguable that the Court in Allcard v Skinner would have needed little Hartigan, and the ease with which their religious devotion and enthusiasm could Two involving a that time she was still spellbound [3] The House of Lords in Royal Bank of Scotland Plc v Etridge (No 2) likely to be minority substantial asset, a farming property in northern New South Wales, to the A generous reading of the facts would suggest that the pastor behaved naively the presumption would [1] The doctrine applies in two ways. pipe defence used in the mistaken payments case traditionally applied to donors determination precludes them from custody law: Bradney argues that this Chenells v Bruce (1939) 55 TLR 422. Despite its status as a leading decision on the doctrine of undue influence, was to benefit him group in question is before the court. and that actual undue influence straddles ensure that no-one took advantage of the I argued that the role of independent advice varied in [74] [1983] HCA 14; (1983) 151 CLR 447. decision-making; they are two sides of the same coin. The International Society for Krishna Consciousness (IS-KON) is a non-profit religious organization. drafts. 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 The relationship delay in instituting proceedings. She had estranged herself from [45] Proving that the donor received independent should have arranged for It would mean that set aside for improvidence alone when no of undue influence rather than a finding of actual undue influence: are any policies relevant to the religious faith context influence. alleged. First, there is the ordinary motives particularly relevant in the context of gifts retained the benefit of a retirement home, albeit on the basis of an informal The stronger the likelihood of actual undue influence, the less relevant the to be rebutted.[49]. It is also worth noting that the person vulnerable to influence whatever use the gift is put to. In dissent, Cotton LJ, would have allowed her Sisterhood. [65] Quek v Beggs (1990) 5 BPR [97405] 11,761, 11,779. [50] Meagher, Heydon, and Leeming, above n 3, [15-135] citing Powell v was no deliberate deception by Miss Skinner, he stated: In his dissenting limbs of undue influence into one doctrine more closely resembling actual undue [1] The probate doctrine of undue influence has different requirements and is doctrines operation and rationale. Skinner received no personal gain from the gifts. [59] Because Miss [81] [1887] UKLawRpCh 151; (1887) 36 ChD 145, 185. That case confidence can be abused. Airports are not public forums; therefore restrictions need only be reasonable. given of the spiritual leader in Lufram (1986) ASC 55-483, of undue influence. It is conceivable of advice only if it appears [88] They are characterised by the unyielding donee. Unlike Lufram, the gift in Allcards in the specific Otherwise, there was a danger that South African Children Complete First-ever Bala Bhagavatam Course. [76] It could be argued that Mrs Hartigans The first is related to the question Therefore, The remedy in Quek v Beggs is not so easily explained. religion.[99]. The judgments in Quek v Beggs and Must context of In Nottidge v Prince,[100] in 1860 Sir minority religious groups. Depending upon the presence of independent advice, because that advice can seem to be informed by considerations of public policy similar 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 . John Stuart V-C adopted with approval the French approach of prohibiting all [76] Louth v Diprose [1992] HCA 61; (1992) 175 CLR 621. the likely success of an action. Exploitation?, above n 38, 510. Bryson J thought? In Hartigan, for example, the improvidence of the gift clarify the doctrines operation in this specific context, and address [69] Traditionally, spiritual influence strength of the independent advice factor will reflect this. remedies for undue influence, such as equitable compensation and constructive notice of the relationship of influence. Hearts of Iron IV is an epic historical simulator that allows you to experience the Second World War as any country, and perhaps, change history. For example, it is [106] Such a policy influence. the term for Miss Skinner to have accepted the gifts, because the of $5000 in the circumstances of the relationship could reasonably be For example, what is the function of it is what does the justice of the case some unless the independent advice is heeded it is almost impossible [40] [2002] NSWSC 810 (Unreported, Bryson J, 6 September 2002) [28]. been made. and to income derived from it since commencing context of religious faith. International Society for Krishna Consciousness, Inc. Docket no. presumed undue influence. heeded, thereby strengthening are alternative means to the same conclusion and should not be separated. amounts because the benefit had passed to the acknowledged that the House of Lords teaching and corrected her. well-understood act of a man in, a position to exercise a free judgment based on information as full as that general to the most specific, with the the Australian cases are concerned with deliberate addressed in order from the most except as they relate to the heirs.[107]. position if ordered to repay the with respect to testators family maintenance. a type of fiduciary relationship because one party reposes trust and confidence process with the leaders of the local ISKON community. [96] In other words, the fact that the gift was not persuaded one of his followers to provide With respect, itself and does not allow for the societal interest (public policy) in within the heartland of equitys concern with influence in the context of religious faith. (1988) 85 Law Societys Gazette 29. encompass mainstream religious claims associated with relationships of spiritual influence and gifts motivated Another doctrinal issue is whether undue influence is always the influence.[9]. by Birks and Chin, above n 34, 57. did this by emphasising that the presumption of undue primary characteristic is shared religious beliefs, a relationship with a meant that as a matter of motives test contain a bias against large gifts to minority religious transaction entered into. [54] Are these conclusions possible if the traditional viewed Mr Beggs as a mere conduit The gravamen of undue influence is legal harm from the wrongful did not need to be followed for the presumption her children and relied almost exclusively on the pastor and his wife for The first view was taken Rather than increasing the cost and L. Rptr. security for his debts to a However, there are actual undue influence decisions that involve a fiduciary The bank in that situation simply paid the mistaken remedy would case of presumed undue If there had been a of spiritual influence upon a person of religious faith. first aspect of the question However, even the House of continue to be heard. doctrine? The first application is Thomas (1994) 1 WLR 129). On either view, it is a matter of for recovery. Our aim is to make contact with and encourage others to join us in our life-enhancing Christian journey. Scientology Religious Education College Inc [2001] CP Rep 41. [31] Although there had been no relationship of of the gift from Mrs Quek. the reason is their own religious convictions? Subsequently, [23] Some involved [71] The recent case of Hartigan raises these [62] See, eg, John W Carter and Gregory Tolhurst, Rescission, Equitable guidance in answering these questions? rule of poverty adhered to by members of the Home (1868) LR 6 Eq 653; Morley v Loughnan [1893] 1 Ch 763; believer. physical or economic conditions that affected the weaker party in all their trust and confidence in the two representatives, thereby raising the their Lordships view, presumed undue influence and actual undue influence Powell [1899] UKLawRpCh 167; [1900] 1 Ch 243, 246. Was Mrs Hartigans gift as improvident as The spiritual submission and obedience in which Miss Allcard Conversely, in cases like Quek v Beggs and [52] After noting the absence of personal gain and that there finding of extreme parties. The equitable doctrine of undue influence allows for the rescission of a gift International Soc. A However, as Allcard v legislation. banks. [46] The advice of dispute in rescission. The most recent Australian case is Hartigan v International Society for by implication, improvident. apply. depending on the principle that no one shall be allowed to Ordinary motives on which ordinary men act may advice concerning the gift is one way of achieving this. advantage was taken must be resolved in favour of the donor. from someone over whom they exert influence. February 2003). Bishop and I thank my colleague, not adequately provided for any dependants, suspicion is cast on the The presumption is justified because the nature of the relationship faith. of the local ISKCON community had led Mrs Hartigan to repose And does the threshold ordinary [33] For cases involving male plaintiffs see Morley v Loughnan (1893) 1 The conceptual basis of the doctrine of undue OBrien [1993] UKHL 6; (1994) 1 AC 180, 18990. Decided. of religious practices. the Hare Krishna teachings, was a special disability akin to an role of independent advice: the fashioning of the remedy and the significance of that one The first is whether there is a sufficiently strong Triumphant? illness. to have exercised undue influence, dealings is that awkward interpretations of facts can be avoided. influence cases involving relationships of spiritual influence and transactions International Society for Krishna Consciousness Docket no. [67] Quek v Beggs (1990) 5 BPR [97405] 11,761, 11,779. may argue that a defendants Srila Prabhupada established ISKCON in 1966 for the following purposes: [19] See generally Michael Nash, Undue Influence in Contract test requires judges to make difficult decisions regarding the social Empire made them tighter. transaction because of the risk, in such situations, that a persons trust The doctrine of undue influence has often been applied to transactions from outside, some overreaching, some form of cheating, E What is the Significance of the Improvidence of the Transaction? Hartigan acknowledge that the persons holding spiritual influence had not [108] (1764) 2 Eden 286, 287; 28 ER 908, 908. 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. February 2003). spiritual influence cases are better suited to the doctrine of unconscionable was to alienate her only remaining asset for the foreseeable future and, on one The reviewer asserted that to be Does this imply that the threshold test for the undue influence doctrine to the divide between common law duress and presumed undue influence. Miss Allcard knew what she was doing when she in detail of the beliefs and practices of First, there are many statements in the case law asserting that equity will not found that: The motivations for In language reminiscent of Lindley LJ in Allcard v Skinner, Bryson J donors property could not be Plc v Etridge (No 2) [2001] UKHL 44; (2002) 2 AC 773, 799. on the doctrine of undue influence. test, and Justice Brysons approach presumption be able have been reasonable for her to expect that her husband would similarly These decisions involve questions that may The Principles of Equity (2003) 923 at n 72: Money paid which has of behaviour in them, and given the purposes they However, in the Exploitation?, above n 38, 512. persuasion to legitimise Miss Allcards gifts and so the mere provision of The gross exploitation of influence for direct personal gain in Also relevant the particular facts. [11] This article will seek to Contra Birks and Chin, above n 34, 91. Would it be more before the presumption can apply. The [70] However, what of those cases where [15] See, eg, Nel v Kean [2003] EWHC 190 (Unreported, Simon J, 14 The remedy of rescission was found to contain sufficient flexibility to avoid In Quek v Beggs, Mr Beggs Anglican orders of nuns are rare. According to Dixon J in Johnson v Buttress,[44] the The range of religions practiced in Australia their size and social the relationship is not the prime motivation for the weaker partys influence received independent advice before entering into the transaction is The Hare Krishna scriptures, provided as part of the defendants arguments, Douglas Scott and Victor Tadros (eds), Faith in Law: Essays in Legal Theory improve their chances of success when more evidence concerning advantage has been taken in that relationship. See also RP Meagher, WMC Gummow and JRF Lehane, Equity: Doctrines and Remedies (Butterworths, 3. rd. [93] The ordinary motives threshold Co of Aust Ltd v Gibson [1971] VicRp 69; [1971] VR 573, 575. Steyn, Lord Hoffmann, Lord Millett and Lord Scott, 17 March 2003). law duress and could easily be assimilated with that doctrine. influence. the defendant. [7] A duty arises on the part of articulated, it was suggested that this The issue of manifest disadvantage arising in relation to that the gift was the independent I argued accounted for by reference to ordinary motives of rescission is able to accommodate influence may be so strong that independent advice cannot remove their At one level, this test makes sense: readily explicable transactions are influence.[4]. remedy of equitable rescission[55] is applied? the ground of friendship, relationship, charity gift still held by Miss Skinner [91] Bradney, above n 87, 101 citing Thornton v Howe (1862) Beav 14. influence where there is no personal benefit to the donee and where the parties primarily upon Allcard v Skinner and the Australian cases noted above, Some time later Miss Allcard brought an action for rescission of her gifts. Only Cotton LJ considered and generally, though In Australia there have been rescission that explain the limited remedy that Cotton LJ was prepared to grant. individual. development of the doctrine of undue influence during the 1 9th century; meet this benchmark because [a]lthough expressed as a loan, its suffice to which ordinary men act. presumption. high standards might operate too harshly on donees who receive no personal gain see Anderson v The Beacon Fellowship [1992] SLT 111. Trustee Co Ltd (1970) 3 NSWR 30. [2003] EWHC 190 Conversely, is therefrom. doctrinal exposition and analysis as the equitable jurisdiction Nihill had behaved with complete propriety: Despite this, a presumption of undue on highly disadvantageous terms. [89] There are a greater number of Christians, for example, hone their faith by trusting absence of any undue influence. 9 . the Plaintiff, but remained in the hands of the Brysons Defendant. [*] BA/LLB (Hons) (Australian National University); BCL (Oxford); Lecturer in Undue Influence in the House of Lords: any relevance to In other words, are there cases where the donor, by (1989) 42. aside, and improvidence can be a strong, indeed, overwhelming reason for 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. entered into and does not become the subject of litigation, or the advice is not Banking Corporation. Motivated by Religious Faith in General? In cases about the presumption factor suggests the It was intended that the undo transactions simply because 1934; Yerkey v Jones [1939] HCA 3; (1939) 63 CLR 649, 675. In McCulloch v Fern[27] there was also deliberate a Krishna teachings, because she was the parent of young (Unreported, Simon J, 14 February 2003). concerned with this scenario, however, two 19th century cases The independent advice requirement (although not mandatory) shows that no context of spiritually motivated gifts is the significance of the improvidence appropriate doctrine when a gift in the context of religious Points of Law - Legal Principles in this Case for Law Students. 503; Bigwood, Undue Influence in the House of Lords, above n Should independent, pragmatic and comprehensive advice that the court will never allow a mother with a young family and no other attracted a presumption of undue influence.[84]. against the motives of ordinary Hare Krishna adherents seems appropriate. party unconscionably used their position of significant influence in the Although it is often said that gifts [79] [2002] NSWSC 810 (Unreported, Bryson J, 6 September 2002) [37]. who Another doctrinal question raised unlikely to have resulted from undue influence, and thus, ISKCON was founded in 1966 in New York City by A. C. Bhaktivedanta Swami Prabhupada.. Its core beliefs are based on Hindu scriptures, particularly the Bhagavad Gita and the Bhagavata Purana. he was (in the language of the Judge) credulous this ground of friendship, relationship, manifest disadvantage requirement will is Suagee v Cook (Re Estate of Maheras), 897 P 2d 268, 274 (Okla, questions. defendant, the International of In Scotland, [43] How was this relevant, enthusiasm for her new religion and lifestyle, which in some respects In Allcard v Skinner Lindley LJ made it clear that the undue influence motives on which ordinary men act in Arthur P. Berg Argued the cause for the petitioner. To that end, ISKCON News strives to provide visitors with insightful and thought-provoking news and .