Causley and Anor v Countryside (No 3) Pty Ltd and Ors

In *Causley and Anor v Countryside (No 3) Pty Ltd and Ors*, the New South Wales Court of Appeal considered a dispute between the Causleys (appellants) and Countryside (No 3) Pty Ltd and others (respondents). The core of the disagreement concerned the interpretation and enforceability of certain restrictive covenants affecting land.

The primary legal issues before the Court of Appeal were whether the restrictive covenants were valid and enforceable against the appellants, and if so, what was the proper construction of those covenants in relation to the proposed development of the appellants' land. Specifically, the court had to determine if the covenants, which purported to restrict building on the land, were sufficiently clear and precise to bind subsequent purchasers and whether they had been breached by the appellants' actions.

The Court of Appeal analysed the wording of the restrictive covenants, applying established principles of contract and property law regarding the construction of restrictive covenants. The court considered whether the covenants created a building scheme or were personal in nature. It examined the intention of the original parties and the clarity with which the restrictions were expressed. The court found that the covenants were sufficiently clear and intended to run with the land, thus binding the appellants. The court also determined that the proposed development constituted a breach of these covenants.

The Court of Appeal allowed the appeal in part, finding that the restrictive covenants were valid and enforceable. It made declarations as to the construction of the covenants and granted an injunction restraining the appellants from proceeding with their development in breach of those covenants.