Castles v Stockton

In *Castles v Stockton* [1989] NSWCA 33, the New South Wales Court of Appeal considered a dispute between the appellant, Castles, and the respondent, Stockton. The case concerned the interpretation and enforceability of a restrictive covenant contained within a deed of conveyance.

The primary legal issue before the Court was whether the restrictive covenant, which prohibited the use of the land for any purpose other than a private dwelling house, was enforceable against the appellant, who had purchased the land subject to the covenant. Specifically, the Court had to determine if the covenant "ran with the land" and therefore bound subsequent purchasers.

The Court of Appeal, applying established principles of equity, found that the restrictive covenant was indeed enforceable. It reasoned that the covenant was intended to benefit the adjoining land owned by the respondent and that the appellant had notice of the covenant at the time of purchase. The Court affirmed that restrictive covenants, when properly drafted and registered, can bind successors in title to the land, provided they satisfy the conditions for running with the land in equity.

The appeal was dismissed, and the restrictive covenant was held to be valid and binding on the appellant.