Dee-Tech Pty Limited and Bright Star Laundry Pty Ltd v Neddam Holdings Pty Ltd

Dee-Tech Pty Limited and Bright Star Laundry Pty Ltd (the applicants) sought to restrain Neddam Holdings Pty Ltd (the respondent) from proceeding with a development application. The applicants argued that the respondent had breached a restrictive covenant contained within a deed of covenant and restriction dated 19 March 1991. The matter came before the Supreme Court of New South Wales.

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 or houses," extended to and bound the respondent as a successor in title to the original covenantor. The Court also considered whether the proposed development, which involved subdividing the land and constructing multiple dwelling houses, constituted a breach of this covenant.

Allsop P found that the restrictive covenant was intended to run with the land and bind successors in title. His Honour applied the principles of equitable covenants, noting that for a covenant to bind future owners, it must have been intended to do so and must have been imposed for the benefit of other land. The Court determined that the covenant was clearly intended to benefit the adjoining land owned by the applicants and that the proposed subdivision and construction of multiple dwelling houses constituted a breach of the covenant prohibiting use for "any purpose other than a private dwelling house or houses."

The Court ordered that the respondent be restrained from proceeding with the development application in a manner that would breach the restrictive covenant.