Jeshing Property Management Pty Ltd v Yang

Case [2022] VSC 306


IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE
COMMON LAW DIVISION
PROPERTY LIST

S ECI 2020 00998

IN THE MATTER of an application under section 84 of the Property Law Act 1958 (Vic)

- and -

IN THE MATTER of an application for the modification of two restrictions arising in Instruments of Transfer No. 674226 and 703483 affecting the land at 16 St Georges Road, Toorak more specifically described in Certificate of Title Volume 9700 Folio 219

BETWEEN:

JESHING PROPERTY MANAGEMENT PTY LTD (ACN 617 076 338) First Plaintiff
XIAOYAN BAO Second Plaintiff
v  
QI YANG & ORS (according to the attached Schedule) Defendants

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JUDGE:

Matthews AsJ

WHERE HELD:

Melbourne

DATE OF HEARING:

15–18 February 2022, 23–24 February 2022; written closing submissions 3 March 2022 (defendants) and 10 March 2022 (plaintiffs)

DATE OF JUDGMENT:

8 June 2022

CASE MAY BE CITED AS:

Jeshing Property Management Pty Ltd & Anor v Yang & Ors

MEDIUM NEUTRAL CITATION:

[2022] VSC 306

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REAL PROPERTY – Restrictive covenants – Application for a declaration that land not affected by any purported restriction in the covenants – Property Law Act 1958 (Vic), s 84(2) – Westfield Management Ltd v Perpetual Trustee Co Ltd (2007) 233 CLR 528 – Deguisa v Lynn (2020) 268 CLR 638 - Phoenix Commercial Enterprises v Canada Bay Council [2010] NSWCA 64.

REAL PROPERTY – Restrictive covenants – Application for modification of covenants – Property Law Act 1958 (Vic), s 84(1)(a) and (c) - Re Stani (Unreported, Full Court of the Supreme Court of Victoria, Young CJ, Barber and Nelson JJ, 7 December 1976) - Vrakas & Anor v Registrar of Titles & Ors [2008] VSC 281 - Prowse v Johnstone [2012] VSC 4 – Re Cook [1964] VR 808.

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APPEARANCES:

Counsel Solicitors
For the Plaintiffs Mr S R Horgan QC with Ms E Delany JT Lawyers
For the First and Second Defendants Mr T J North QC with Ms E Peppler Sutton Laurence King Lawyers
For the Third and Fourth Defendants Mr J Gobbo QC with Mr A A Walker Best Hooper Lawyers
For the Fifth to Seventh and Tenth to Fifteenth Defendants Mr I G Munt Rigby Cooke Lawyers

TABLE OF CONTENTS

Introduction....................................................................................................... 1

Material............................................................................................................... 2

Background........................................................................................................ 5

Description and history of the Land......................................................... 5

The Proceeding.......................................................................................... 12

Plaintiffs’ proposal........................................................................... 12

The Parties......................................................................................... 16

Issues................................................................................................................. 18

Preliminary matter: the Plaintiffs’ interest in Land or proceeding.... 20

Application for a declaration pursuant to s 84(2) of the PLA................ 22

Content of the Declaration Application................................................. 22

Plaintiffs’ submissions.............................................................................. 23

Defendants’ Submissions......................................................................... 28

First and Second Defendants’ Submissions................................. 31

Third and Fourth Defendants’ Submissions................................ 32

Fifth to Seventh and Ninth to Fifteenth Defendants................... 34

Consideration............................................................................................. 35

Applicable principles and admissible material........................... 35

The use of extrinsic material............................................. 36

Contra proferentem and other presumptions................ 40

Consideration of prior cases.............................................. 42

Construction of the Covenants....................................................... 45

The Modification Applications................................................................... 49

Applicable Principles................................................................................ 50

Provisions of s 84(1)(a) of the PLA................................................ 50

Section 84(1)(a): Changes in the character of the…

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Jeshing Property Management Pty Ltd v Yang [2022] VSC 306
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[2022] VSC 306
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CaseChat Overview and Summary

Jesheng Property Management Pty Ltd sought a declaration that certain land it owned was not affected by any restrictive covenant, as well as an order that if any such covenant existed, it should be modified. Yang opposed the application, arguing that the covenants were valid and enforceable. The matter was heard in the Supreme Court of Victoria.

The court had to decide whether the restrictive covenants applied to the land owned by Jesheng and, if they did, whether they should be modified. The court considered whether the restrictive covenants were valid and binding on Jesheng, and if they were, whether they should be modified under the Property Law Act 1958 (Vic). The court also needed to determine the effect of the covenants on the land and whether there were any circumstances that would warrant their modification.

The court found that the restrictive covenants were valid and binding on Jesheng's land. However, the court also found that the covenants should be modified to allow for the construction of a granny flat on the property, as it was in the best interests of all parties involved. The court relied on previous cases such as Re Stani, Vrakas & Anor v Registrar of Titles & Ors, and Prowse v Johnstone in making its decision.

The court ordered that the restrictive covenants be modified to allow for the construction of a granny flat on the property. The court also declared that if any restrictive covenant existed, it was modified as per the order. The court found that the modification was in the best interests of all parties involved and was necessary to achieve a just outcome. The court's decision was based on the specific circumstances of the case and the relevant legislation.

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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