Leicester v Walton

In *Leicester v Walton* [1995] NSWCA 256, 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 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 the covenant ran with the land and bound subsequent owners, or if it was merely a personal covenant between the original parties.

The Court of Appeal, applying established principles of property law, found that the covenant was intended to benefit the appellant's adjoining land and that it satisfied the requirements for a restrictive covenant that could bind successive owners. The Court reasoned that the covenant was negative in substance, intended to protect the amenity of the dominant tenement, and that there was a clear intention for it to be annexed to and run with the land. The Court distinguished the present case from those where covenants were found to be personal or unenforceable due to uncertainty or lack of benefit.

Consequently, the Court of Appeal allowed the appeal, finding the deed of covenant to be valid and enforceable against the respondent.