Stanley v Spurway

In *Stanley v Spurway* [1997] NSWCA 291, the New South Wales Court of Appeal considered a dispute between the appellant, Stanley, and the respondent, Spurway. The case concerned the interpretation and enforceability of a restrictive covenant contained within a deed of sale for a parcel of land. Stanley sought to enforce the covenant against Spurway, who had acquired the land subject to the covenant.

The primary legal issue before the Court of Appeal was whether the restrictive covenant "not to erect any building other than a single private dwelling house" was enforceable against Spurway. This involved determining whether the covenant "ran with the land" and therefore bound subsequent purchasers, and if so, whether its terms were sufficiently clear and unambiguous to warrant enforcement.

The Court of Appeal, applying established principles of equity regarding restrictive covenants, found that the covenant was indeed intended to bind successors in title and that it did run with the land. The court reasoned that the covenant was for the benefit of the dominant tenement and imposed a restriction on the use of the servient tenement. The language of the covenant was held to be sufficiently clear to prohibit the erection of anything other than a single private dwelling house, thereby preventing the construction of a block of units.

Consequently, the Court of Appeal dismissed Spurway's appeal, upholding the primary judge's decision that the restrictive covenant was valid and enforceable. The court ordered that Spurway was restrained from breaching the covenant.