| IN THE SUPREME COURT OF VICTORIA | Not Restricted |
AT MELBOURNE
COMMON LAW DIVISION
S CI 2012 05752
IN THE MATTER of an Application under Section 84 of the Property Law Act 1958
BETWEEN:
| GARDENCITY ALTONA PTY LTD (ACN 113 976 935) | Firstnamed Plaintiff |
| SONNY AUSTRALIA INVESTMENTS PTY LTD (ACN 603 071 101) | Secondnamed Plaintiff |
| v | |
| DENNIS GRECH AND OTHERS (according to the attached schedule) | Defendants |
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JUDGE: | Lansdowne AsJ |
WHERE HELD: | Melbourne |
DATE OF HEARING: | 28, 29, 30 May 2014 and 26 June 2015 |
DATE OF JUDGMENT: | 5 October 2015 |
CASE MAY BE CITED AS: | Gardencity Altona v Grech and ors |
MEDIUM NEUTRAL CITATION: | [2015] VSC 538 |
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RESTRICTIVE COVENANT – application to remove restriction in covenants to construction in brick or stone – whether the plaintiff is required to identify all beneficiaries of the covenants – whether brick veneer complies with the restriction - whether the restriction is obsolete – consideration of the proper neighbourhood - no evidence of change in the neighbourhood - covenant complied with on subject land – variety of materials in the neighbourhood but brick the most common material - restriction not obsolete – whether removal of the restriction will cause no substantial injury to the defendants – defendants have genuine and reasonable preference for brick – other amenity interests of defendants not protected by the restriction - some non- adherence to like covenants shown but also adherence - no proposal from the plaintiff in the light of which the effect of removal of the restriction can be considered- removal of the restriction would cause uncertainty – precedential effect of removal of the restriction – not shown removal of the restriction will not substantially injure the persons entitled to its benefit – application dismissed- Property Law Act 1958 (Vic) s 84(1)(a) and (c).
JOINDER – subject land sold after trial but before judgment – purchaser joined as second plaintiff by consent.
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APPEARANCES: | Counsel | Solicitors |
| For the Firstnamed Plaintiff | Ms T J Acreman | Simon A Nixon |
| For the Secondnamed Plaintiff | Mr M G R Gronow (on 26 June 2015) | P & B Law (on 26 June 2015) |
| For the Defendants | Mr M D Townsend | Russell Kennedy |
TABLE OF CONTENTS
Introduction and summary............................................................................................................... 1
Summary of conclusions.............................................................................................................. 2
Procedural history........................................................................................................................ 4
Facts....................................................................................................................................................... 7
History of the titles and the covenants...................................................................................... 7
Benefited land.................................................................................................................... 12
The parties acquire their land................................................................................................... 16
The character of the area............................................................................................................ 19
Plaintiff’s proposals.................................................................................................................... 21
Legal principles................................................................................................................................ 23
S 84(1)(a): obsolete....................................................................................................................... 24
‘Obsolete’............................................................................................................................ 24
‘Neighbourhood’............................................................................................................... 25
Change or other circumstances........................................................................................ 25
S 84(1)(c): no substantial injury................................................................................................. 25
Generally...................................................................................................................................... 28
Submissions...................................................................................................................................... 29
Plaintiff......................................................................................................................................... 29
Obsolescence...................................................................................................................... 29
No substantial injury........................................................................................................ 30
Defendants................................................................................................................................... 31
Obsolescence...................................................................................................................... 32
No substantial injury........................................................................................................ 33
Discussion.......................................................................................................................................... 34
Purpose of the restriction........................................................................................................... 34
Neighbourhood and beneficiaries............................................................................................ 36
Does brick veneer comply with the restriction?..................................................................... 40
Current extent of the use of brick............................................................................................. 41
Change.......................................................................................................................................... 45
Non-compliance with the materials restriction...................................................................... 48
The defendants’ views................................................................................................................ 51
Benefit by way of limitation on height?................................................................................... 56
Uncertainty................................................................................................................................... 57
Creation of a precedent.............................................................................................................. 59
Conclusion.........................................................................................................................................…
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- Case
- [2015] VSC 538
- Decision Date
CaseChat Overview and Summary
The court found that the plaintiff was not required to identify all beneficiaries of the covenants. It was determined that brick veneer did not comply with the restriction. The court concluded that the restriction was not obsolete, as there was no evidence of a significant change in the neighbourhood. The variety of materials used in the neighbourhood was noted, but brick remained the most common material. The court also found that the defendants had a genuine and reasonable preference for brick, and their other amenity interests were not protected by the restriction. Although some non-adherence to the like covenants was shown, adherence also existed. The plaintiff did not propose any alternative in light of which the effect of removing the restriction could be considered. The court reasoned that removing the restriction would cause uncertainty and have a precedential effect, and it was not shown that the removal would not substantially injure those entitled to the benefit of the covenant. Consequently, the application was dismissed.
The final orders of the court included the dismissal of the application to remove the restrictive covenant. Additionally, the subject land was sold after the trial but before the judgment, and the purchaser was joined as the second plaintiff by consent.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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