Morrison v Neil

[2015] VSC 269

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE
COMMERCIAL COURT

S CI 2013 06581

IN THE MATTER of an application by ROBYN MARY MORRISON for the discharge or modification of covenants 0984695 and 1090117 pursuant to s 84(1) of the Property Law Act 1958 (Vic)

BETWEEN:

ROBYN MARY MORRISON	Plaintiff
v
ARTHUR NEIL (and others according to the attaches schedule)	Defendants

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JUDGE:	DERHAM AsJ
WHERE HELD:	Melbourne
DATE OF HEARING:	14 & 15 October 2014
DATE OF JUDGMENT:	17 June 2015
CASE MAY BE CITED AS:	Morrison v Neil & Ors
MEDIUM NEUTRAL CITATION:	[2015] VSC 269

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REAL PROPERTY – Restrictive covenant – Application for discharge or modification –Covenant restricting, amongst other things, the erection of more than one dwelling on the land – Proposed development involving subdivision and construction of single dwelling on one lot and 4 unit development on the other – Whether by reason of changes in the character of the neighbourhood the restriction ought to be deemed obsolete – Whether discharge or modification will not substantially injure the persons entitled to the benefit – Application refused – Applicable legal principles – Property Law Act1958, s 84(1)(a) & (c).

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APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Mr N Jones	Subdivision Lawyers
For the Defendant	Mr M Townsend	King & Wood Mallesons

TABLE OF CONTENTS

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

Background.................................................................................................................................... 2

Summary of Conclusions............................................................................................................. 3

Evidence............................................................................................................................................... 3

Affidavits........................................................................................................................................ 3

Expert Reports............................................................................................................................... 4

First Chapman Report......................................................................................................... 4

Second Chapman Report.................................................................................................... 8

Milner Report....................................................................................................................... 9

Third Chapman Report..................................................................................................... 15

Defendants’ Evidence..................................................................................................................... 16

Applicable Law................................................................................................................................. 22

Legislative Provisions................................................................................................................. 22

Plaintiff’s Submissions............................................................................................................... 26

Changes in the Character of the Property or Neighbourhood................................... 26

Substantial Injury............................................................................................................... 28

Defendants’ Submissions........................................................................................................... 33

Changes in the Character of the Property or Neighbourhood................................... 33

Substantial Injury............................................................................................................... 35

Consideration.................................................................................................................................... 38

Section 84(1)(a) – Changes in the Character of the Property or Neighbourhood.............. 38

Neighbourhood.................................................................................................................. 38

Level of Change................................................................................................................. 42

Substantial Injury........................................................................................................................ 43

Comparison Test................................................................................................................ 43

Precedent............................................................................................................................. 45

Amenities............................................................................................................................ 47

Conclusion......................................................................................................................................... 50

HIS HONOUR:

Introduction

1. The plaintiff applies to modify or discharge two covenants insofar as they affect her property at 44 Beach Road, Mentone (‘the Property’).[1]  The Property is lot 4 on plan of subdivision LP7955, and part of lot 3 on that subdivision.  Lot 4 is the larger lot and fronts on Beach Road, Mentone.  Lot 3 is a strip of land that connects lot 4 to Marina Road, Mentone.  The plans in Annexure A show the location of the Property and the surrounding streets.

   [1]The land more particularly described in Certificate of Title 06837 Folio 252.

1. The two covenants are:

(a)        the covenant in Transfer 0984695 dated 8 September 1920,[2] which relates to lot 3 on the plan of subdivision;

(b)       the covenant in Transfer 1090117 dated 20 February 1923,[3] which relates to lot 4 on the plan of subdivision.

Plans showing the location of the Property and the properties having the benefit of the two covenants in question are attached in Annexure A.[4]

[2]Exhibit SL-2 to the affidavit of Simon Libbis…