Stanhill Pty Ltd v Jackson

Stanhill Pty Ltd brought an action against Jackson, seeking to have a restrictive covenant removed from their property. The dispute centred on a covenant that limited the use of a piece of land to residential purposes only, a restriction imposed decades ago when the property was first subdivided. The matter was heard in the Supreme Court of Victoria.

The central legal issues the court had to decide were whether the covenant had become obsolete, whether it impeded the reasonable use of the property, and whether modifying the covenant would cause substantial injury to neighbouring properties. The court also had to consider the statutory provisions under the Property Law Act 1958, particularly section 84, which governs the discharge or modification of restrictive covenants.

The court found that the restrictive covenant was no longer obsolete, as there were still significant residential areas nearby that would be adversely affected by a change in the covenant. It held that the covenant did not impede the reasonable use of the property, as it still allowed for a wide range of residential uses. The court also concluded that modifying the covenant would cause substantial injury to the neighbouring properties, as it would permit a use that was inconsistent with the residential character of the area. Consequently, the court dismissed Stanhill's application to have the covenant discharged or modified.

The court ordered that the restrictive covenant remain in place, prohibiting any non-residential use of the property in question.