Neighbourhood Association DP 285249 v Watson

The case of Neighbourhood Association DP 285249 v Watson involved a dispute between a neighbourhood association and a property developer over the implementation and adherence to development contracts and statutory covenants within a community title scheme. The matter was heard by the Supreme Court of New South Wales. The association sought to enforce specific performance of the developer's obligations under the development contracts and statutory covenants, claiming that the developer had failed to complete certain works and had breached the contracts. The developer argued that the unregistered development applications and plans were not incorporated into the development consents, and therefore, did not form part of the development contracts. The developer further contended that the continuation or completion of the community scheme had become impracticable and, as a result, the scheme should be varied.

The legal issues before the court included whether the unregistered development applications and plans were incorporated in the development consents referred to in the development contracts and statutory covenants, and whether such plans formed part of the development contracts. Additionally, the court had to determine if the continuation or completion of the community scheme had become impracticable and, if not, whether the scheme should be varied. The court also needed to decide whether specific performance should be ordered of the original proprietors' obligations under the development contracts and statutory covenants, and if the original proprietors were in breach of the development contracts. Finally, the court had to consider whether damages should be awarded for any breaches of the development contracts.

In delivering the judgment, the court held that the unregistered development applications and plans were indeed incorporated into the development consents and formed part of the development contracts. The court found that the continuation or completion of the community scheme had not become impracticable and, therefore, the scheme should not be varied. The court ordered specific performance of the developer's obligations under the development contracts and statutory covenants, and found the developer to be in breach of the contracts. The court awarded damages to the neighbourhood association for the breaches, which included the cost of completing the works and the cost of rectifying defects. The developer was ordered to pay the association's legal costs.