ESTOPPEL IS ADMITTED BY MONEGASQUE CASE-LAW
The common law principle that prevents someone from arguing something or asserting a right that contradicts what they previously said or agreed to by law is admitted by Monegasque jurisdictions for the second time (Court of appeal, 13 December 2022, Court of appeal, 8 June 2016).
In both proceedings, Monegasque jurisdictions did accept the Estoppel principle, a point worth highlighting, but did not apply it.
Estoppel legally prevents a person from making contradictory claims or actions as opposed to statements or actions they may have made previously.
This principle stipulates that a party may not set itself in contradiction to its previous conduct as the other party has relied on such conduct. Such inconsistency is prohibited because it can cause harm to the other party and allow the party to evade contractual provisions.
Such inconsistent claim or action should therefore not be admissible.
There is no principle of Estoppel in Monegasque civil law. Instead, the obligation to conduct the legal debates in good faith has the equivalent effect of prohibiting inconsistent conduct.
One party can amend in good faith its briefs and strategy during the proceedings, especially during long proceedings, considering any change, to the extent possible within the law (in particular, within the law applicable to counterclaims and additional claims).
For example, a party could not claim that a contract is invalid and then claim that it should be executed nor accept the appointment of an arbitrator and subsequently claims that the arbitration clause is invalid. It can also be illustrated by a party which challenges a right during appeal proceedings whereas it recognizes its application during first instance's proceedings.
Monegasque jurisdictions will have to clarify which legal regime is applicable to prohibit the admissibility of contradictory claims.
They will also have to clarify whether this principle can only apply to the same proceedings or can be extended to other proceedings related to the same case.
Originally published 24 May 2023.
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