Christian Youth Camps Limited v Cobaw Community Health Services Limited and Ors

Christian Youth Camps Limited (CYC) sought to purchase land from Cobaw Community Health Services Limited (Cobaw). The land was subject to a restrictive covenant that prohibited its use for any purpose other than as a "private hospital or nursing home". CYC intended to use the land for a youth camp, which would include accommodation and recreational facilities. Cobaw refused to consent to the release or modification of the covenant, and CYC commenced proceedings in the Supreme Court of Victoria seeking a declaration that the covenant did not apply to its proposed use, or alternatively, that it should be modified or extinguished. The case proceeded to the High Court of Australia.

The High Court was required to determine whether the proposed use of the land as a youth camp was prohibited by the restrictive covenant. Specifically, the Court had to consider the proper construction of the phrase "private hospital or nursing home" and whether it encompassed the activities proposed by CYC. The Court also considered the principles governing the modification or extinguishment of restrictive covenants under the relevant legislation.

The High Court held that the restrictive covenant, properly construed, prohibited the use of the land for a youth camp. The Court reasoned that the terms "private hospital" and "nursing home" referred to facilities providing medical or convalescent care, and did not extend to the provision of accommodation and recreational activities for youth. The Court affirmed that restrictive covenants are to be construed according to their plain meaning, and that any ambiguity should not be resolved in favour of the party seeking to escape the restriction. The Court also noted that the statutory grounds for modification or extinguishment of restrictive covenants were not met in this instance.

The High Court dismissed CYC's appeal, upholding the decision of the lower courts.