Queensland Trotting Board v McLean

The Queensland Trotting Board (the Board) sought to recover from Mr. McLean the sum of £10,000, which it alleged was due to it under a deed of covenant. The deed was entered into between the Board and Mr. McLean in 1964, and it concerned the sale of a trotting stud property. The dispute arose because the Board claimed Mr. McLean had breached the covenant by failing to pay the sum of £10,000, which was payable upon the happening of a certain event. The matter was heard by the High Court of Australia.

The central legal issue before the High Court was whether the event upon which the sum of £10,000 was payable had in fact occurred. This required the Court to interpret the terms of the deed of covenant, specifically the clause that stipulated the conditions for payment. The Court had to determine if the circumstances that transpired after the execution of the deed satisfied the criteria for the payment obligation to arise.

The Court examined the language of the deed and the surrounding circumstances at the time of its execution. It was held that the event triggering the payment of £10,000 had not occurred. The Court reasoned that the wording of the covenant was clear and unambiguous, and that the subsequent events did not fulfil the specific conditions precedent to payment. Therefore, Mr. McLean was not liable to pay the sum of £10,000 to the Board under the deed. The appeal was dismissed.