SDN Children's Services Inc v Hughes & Anor

SDN Children's Services Inc sought to restrain the respondents, Hughes and Anor, from continuing to operate a childcare centre in contravention of a restrictive covenant. The dispute concerned the interpretation and enforceability of a covenant that prohibited the operation of a "child care centre" within a specified area. The matter came before McHugh J in chambers.

The primary legal issue before the court was whether the respondents' operation of a childcare centre constituted a breach of the restrictive covenant. This required the court to determine the precise meaning of the term "child care centre" as it was used in the covenant and to assess whether the activities conducted by the respondents fell within that definition.

McHugh J considered the ordinary meaning of the words used in the covenant and the context in which it was created. His Honour found that the respondents' facility, which provided care and supervision for children during the day, clearly fell within the ordinary meaning of a "child care centre." The court applied the principle that restrictive covenants are to be construed according to their plain and ordinary meaning, and that any ambiguity should not be resolved in a way that unduly restricts the use of land.

The court ordered that the respondents be restrained from continuing to operate their childcare centre in contravention of the restrictive covenant.