Leicester v Walton

In *Leicester v Walton* [1995] NSWCA 258, the New South Wales Court of Appeal considered a dispute between the appellant, Leicester, and the respondent, Walton. The case concerned the interpretation and enforceability of a deed of covenant entered into between the parties.

The primary legal issue before the Court was whether the deed of covenant, which purported to create a perpetual restriction on the use of certain land, was valid and enforceable against the respondent. Specifically, the Court had to determine if such a perpetual covenant ran with the land and bound subsequent owners, or if it was void for remoteness of the reversion.

The Court of Appeal, applying established principles of property law, held that the covenant was void for remoteness. It reasoned that a covenant that sought to impose a perpetual restriction on the use of land, without any corresponding benefit to other land owned by the covenantee, was an attempt to create a perpetual rent charge or an interest in land that was contrary to public policy and the established rules against perpetuities. The Court distinguished this situation from covenants that confer a benefit on adjoining land, which are generally enforceable.

Consequently, the Court of Appeal allowed the appeal, finding that the deed of covenant was not enforceable against the respondent.