Alcune Pty Ltd v Tri-Anta Pty Ltd

Alcune Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the interpretation and enforceability of a restrictive covenant contained within a deed of transfer of land. The appellant sought to restrain the respondent from developing its land in a manner that allegedly breached this covenant.

The primary legal issue before the Court of Appeal was whether the restrictive covenant, which purported to prevent the respondent from erecting any building other than a single private dwelling house, was valid and enforceable against the respondent. This involved considering whether the covenant "ran with the land" and whether it was sufficiently clear in its terms to be given effect by the court.

The Court of Appeal found that the covenant was indeed valid and enforceable. Applying established principles of land law, the court determined that the covenant satisfied the requirements for a restrictive covenant to bind successive owners, including the requirement that it be negative in substance and intended to benefit the dominant tenement. The court also found the language of the covenant to be sufficiently clear to prohibit the respondent's proposed development, which involved the construction of multiple townhouses.

Consequently, the Court of Appeal allowed the appeal, set aside the order of the Supreme Court, and granted an injunction restraining the respondent from proceeding with its development in breach of the restrictive covenant.