Carter Corporation Pty Ltd v Medway

Carter Corporation 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 deed of covenant entered into between the parties.

The primary legal issue before the Court of Appeal was whether the deed of covenant, which purported to bind future owners of certain land with restrictive covenants, was valid and enforceable against the appellant, who had acquired the land subsequent to the deed's execution. Specifically, the court had to determine if the covenants "ran with the land" at common law or in equity, and if they were otherwise effective to bind a successor in title.

The Court of Appeal, in its reasoning, considered the established principles of restrictive covenants at common law and in equity. It analysed the requirements for a covenant to be considered a burden that runs with the land, including whether the covenant touched and concerned the land and whether there was an intention for it to bind successors. The court also examined the equitable doctrine of building schemes and the conditions necessary for their application. Ultimately, the court found that the covenants in question did not satisfy the requirements to run with the land at common law, nor did they form part of a valid building scheme enforceable in equity against the appellant.

The appeal was allowed, and the orders of the Supreme Court were set aside.