Merewether v Scottish Australian Mining Co Ltd

In *Merewether v Scottish Australian Mining Co Ltd*, the High Court of Australia considered a dispute between a landowner, Merewether, and a mining company, Scottish Australian Mining Co Ltd. The core of the disagreement concerned the interpretation and application of a covenant within a mining lease that obligated the company to work the mine "according to the best and most approved method."

The central legal issue before the High Court was whether the mining company had breached its contractual obligation to work the mine using the "best and most approved method." This required the court to determine the objective standard of what constituted such a method in the context of mining operations at the time the covenant was in effect, and whether the company's practices met that standard.

The Court reasoned that the covenant imposed a positive duty on the mining company to adopt and implement mining techniques that were recognised as superior and current within the industry. It was not sufficient for the company to merely employ methods that were adequate or customary; the obligation was to use those considered best and most approved. The Court would have examined evidence of contemporary mining practices and expert opinions to ascertain whether the company's operations fell short of this standard, implying a breach of the covenant if they did.