Dowzard Pty Ltd v Stocks

Dowzard 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 restrictive covenant contained within a deed of sale for a parcel of land. The appellant sought to develop its land in a manner that the respondent, a neighbouring landowner, contended was in breach of the covenant.

The primary legal issue before the Court of Appeal was whether the restrictive covenant, which purported to prevent the construction of any building other than a single private dwelling house, was enforceable against the appellant. This involved determining whether the covenant "ran with the land" and thus bound subsequent purchasers, and whether it was sufficiently clear and unambiguous in its terms to be upheld. The court also considered whether the covenant had been breached by the appellant's proposed development.

The Court of Appeal, applying established principles of equity regarding restrictive covenants, found that the covenant was indeed intended to bind successors in title and was sufficiently clear in its meaning. The court reasoned that the covenant's purpose was to preserve the residential character of the neighbourhood. The proposed development, which involved subdividing the land and constructing multiple dwellings, was held to be a clear breach of the covenant's prohibition against building anything other than a single private dwelling house.

Consequently, the Court of Appeal dismissed the appeal and affirmed the decision of the Supreme Court, granting an injunction to prevent the appellant from proceeding with its development in contravention of the restrictive covenant.