McMahon & Anor v McMahon & Ors

[2008] VSC 386

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMERCIAL AND EQUITY DIVISION

No. 7514 of 2005

McMAHON & ANOR	Plaintiffs
v
McMAHON & ORS	Defendants

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JUDGE:	WHELAN J
WHERE HELD:	Melbourne
DATE OF HEARING:	14-15, 18-22, 25-28 August, 1, 3-4 September
DATE OF JUDGMENT:	2 October 2008
CASE MAY BE CITED AS:	McMahon & anor v McMahon & ors
MEDIUM NEUTRAL CITATION:	[2008] VSC 386

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CONTRACTS – Intention to create legal relations – Family members – Contract not established.

REAL PROPERTY – Easements -  Easement by prescription/Lost modern grant – Easement established.

REAL PROPERTY – Easements - Common intention as to use – Provision of substitute route – Substitute route consistent with common intention.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiffs	Mr C Harrison Mr M Kennedy	McMahon Fearnley
For the Defendants	Mr M Colbran QC Mr  T Messer	Beveridge Eaton Lawyers

TABLE OF CONTENTS

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

Sequence of events............................................................................................................................ 4

Pre-1969.......................................................................................................................................... 4
Division of the land...................................................................................................................... 5
Clearing in 1971............................................................................................................................. 6
John’s house and fence................................................................................................................. 6
Mid-1970s – tracks to the national park..................................................................................... 8
Location of the track across the large blocks before 1983....................................................... 8
Position as at Christmas 1982...................................................................................................... 9
Discussions concerning the airstrip – Christmas/New Year 1982/1983............................ 10
Work in 1983 on the airstrip and the track across the large blocks..................................... 10
The taxiway and the 1984 realignment of the fence on John’s small block........................ 11
1985 work..................................................................................................................................... 12
New Year 1995:  the ultralight parachute incident................................................................ 12
John’s fence in the late 1990s..................................................................................................... 13
Counsel’s advice in 1997............................................................................................................ 13
John says he is withdrawing permission for the airstrip...................................................... 16
John prevents use of the airstrip............................................................................................... 16
Confrontation at John’s eastern fence....................................................................................... 17
Track work and airstrip reconstruction in May 2004............................................................. 17
Flooding....................................................................................................................................... 18

The airstrip agreement.................................................................................................................... 19

The respective accounts of events............................................................................................ 19
Intention to create legal relations............................................................................................. 27
John’s right to close the strip..................................................................................................... 28
Agreement not established in any event................................................................................. 30
The airstrip estoppel claim........................................................................................................ 30

The plaintiffs’ easement claims..................................................................................................... 32

The pleaded case......................................................................................................................... 32
The claims as argued.................................................................................................................. 33
Factual issues concerning John’s fence.................................................................................... 33
Timing of John’s fence................................................................................................................ 34
Use after the fence was erected................................................................................................. 35
Bulldozing on John’s small block in 1971............................................................................... 36
The track at the big rope............................................................................................................ 37

Applicable legal principles concerning the easement claims.................................................. 40

Analysis of the plaintiffs’ easement claims................................................................................. 43

Characteristics of the east/west easement.................................................................................... 48

The defendants’ claims for easements in relation to ocean access.......................................... 51

Conclusions....................................................................................................................................... 53

HIS HONOUR:

Introduction

1. Members of the McMahon family have owned land on the Boole Poole Peninsula near Lakes Entrance for generations.  In 1969 Henry Ernest McMahon transferred land on the Boole Poole Peninsula which he owned to his five children as tenants in common.  By various subdivisions during the 1970s the land he transferred was divided amongst the five children.  I will refer to this land as the McMahon land.

1. The McMahon land is on a peninsula running east-west, with the ocean to the south and the Gippsland Lakes to the north.  It was,…