Leicester v Walton

In *Leicester v Walton* [1995] NSWCA 257, 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 by the parties.

The primary legal issue before the Court of Appeal 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 or as an unreasonable restraint on trade.

The Court of Appeal, applying principles of property law and contract law, found that the covenant was not void for remoteness. It reasoned that the covenant was a personal one between the original parties and did not purport to create an interest in land that would bind successors in title. The Court distinguished between covenants that create proprietary interests and those that are merely contractual obligations. As a result, the covenant was held to be enforceable as a personal obligation between Leicester and Walton.

The Court of Appeal dismissed the appeal, upholding the primary judge's decision that the deed of covenant was valid and enforceable between the parties.