| IN THE SUPREME COURT OF VICTORIA | Not Restricted |
AT MELBOURNE
COMMON LAW DIVISION
PROPERTY LIST
S ECI 2019 01509
IN THE MATTER of an application under s 84 of the Property Law Act 1958 (Vic)
and
IN THE MATTER of an application for the modification of a restriction arising under a covenant contained in a transfer of land registration number 1383291 affecting the land at 43 Allenby Avenue, Reservoir, Victoria, being more specifically described in Certificate of Title Volume 5464 folio 672
BETWEEN:
| HIVANCE PTY LTD | Plaintiff |
| v | |
| VINCE MOSCATIELLO & ORS (according to the attached Schedule) | Defendants |
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JUDGE: | Macaulay J |
WHERE HELD: | Melbourne |
DATE OF HEARING: | 11 February 2020 |
DATE OF JUDGMENT: | 17 April 2020 |
CASE MAY BE CITED AS: | Hivance Pty Ltd v Moscatiello & Ors |
MEDIUM NEUTRAL CITATION: | [2020] VSC 183 |
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LAND LAW – Restrictive covenant on land in a suburban neighbourhood preventing more than one dwelling on the land – Application to modify the covenant to permit three dwellings to be constructed on the land – Whether plaintiff proved that modification will not cause substantial injury to the beneficiaries of the covenant – Whether neighbourhood retains an intact special character due to the network of single dwelling covenants – Whether the ‘horse had bolted’ in that existing multi-dwellings in the neighbourhood had already eroded any special character the covenant had previously assisted to maintain – s 84(1)(c) Property Law Act 1958 (Vic) – Randell v Uhl [2019] VSC 668.
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APPEARANCES: | Counsel | Solicitors |
| For the Plaintiff | Mr A Ounapuu | Sinisgalli Foster Legal |
| For the Defendants | Ms T Acreman | MPW Lawyers |
HIS HONOUR:
Introduction
Holly Valance, the sole director and shareholder of the plaintiff company, Hivance Pty Ltd, wants to build three two-storey townhouses at 43 Allenby Avenue, Reservoir, Victoria, a residential lot that once would have been described as ‘a quarter acre block’ (the property).[1] Her problem is that the property is subject to a restrictive covenant that only permits a single dwelling on the land. That being so, she has brought this application under s 84 of the Property Law Act 1958 (Vic) asking the Court to vary the covenant so that it permits three dwellings to be built.
[1]920 square metres.
The defendants, all neighbouring land owners whose lands enjoy the benefit of the restrictive covenant, oppose her application. To succeed, Hivance must prove a negative: it must prove that the proposed variation to the covenant will not cause ‘substantial injury’ to the beneficiaries of the covenant.
Arising from the principal arguments put for and against that proposition, the critical questions appear to be these:
(a) Does the neighbourhood retain a special distinctive character engendered and sustained by the single-dwelling covenant?
(b) If so, has the plaintiff shown that a relaxation of the single-dwelling restriction on the property will not diminish that distinctive character either –
(i) directly (immediately), because of the construction of the proposed three-dwelling development, or
(ii) in the longer term, by establishing or contributing to…
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- Case
- [2020] VSC 183
- Decision Date
CaseChat Overview and Summary
The court examined the evidence and found that while the neighbourhood had experienced some changes, there was sufficient evidence to support that a special character was still present. This was based on the number of single dwelling covenants that remained intact and the nature of the neighbourhood as a whole. The court rejected the argument that the 'horse had bolted', finding that the presence of a few multi-dwelling properties did not necessarily mean that the special character had been completely eroded. The court relied on the decision in Randell v Uhl [2019] VSC 668, which emphasised the importance of maintaining the special character of a neighbourhood through restrictive covenants.
In light of the evidence, the court concluded that Hivance had not proven that modifying the covenant would not cause substantial injury to the beneficiaries. The court also found that the neighbourhood retained a special character that was worth protecting. Consequently, the application to modify the covenant was dismissed. The court ordered that Hivance bear its own costs of the application.
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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