| IN THE SUPREME COURT OF VICTORIA | Not Restricted |
AT MELBOURNE
COMMON LAW DIVISION
S CI 2013 02552
IN THE MATTER of the Property Law Act 1958, Section 84
and
IN THE MATTER of an application by Rebecca Yokehoong Wong for the modification of the restrictive covenant contained in Instrument of Transfer No. 2389018 registered in the Land Titles Office in the Register Book and imposed upon the land more particularly described as Lot 493 on Plan of Subdivision 9986 Certificate of Title Volume 08024 Folio 024
| REBECCA YOKEHOONG WONG | Plaintiff |
| and | |
| DANIEL McCONVILLE & ORS (and others according to the attached schedule) | Defendants |
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JUDGE: | DERHAM AsJ | |
WHERE HELD: | Melbourne | |
DATE OF HEARING: | 7 April 2014 | |
DATE OF JUDGMENT: | 17 June 2014 | |
CASE MAY BE CITED AS: | Wong v McConville & Ors (No. 2) | |
MEDIUM NEUTRAL CITATION: | [2014] VSC 282 | |
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COSTS — Application for modification of restrictive covenant — Application granted — Application of special factors relevant to costs in applications for the discharge or modification of restrictive covenants — Re Withers [1970] VR 319 applied — Calderbank offers made by plaintiff — Applicable legal principles — Whether unreasonable of defendants to reject Calderbank offers — First offer too early and not susceptible of formulation as modifications to covenant — Second offer not susceptible of formulation as modifications to covenant — Whether in the nature of an invitation to negotiate— Whether the need that the Court exercise jurisdiction under s 84 of the Property Law Act 1958 affects the availability or utility of Calderbank offers — Effect of abandonment of a significant ground of the application on the first day of the trial — Costs of the defendants to be paid by the plaintiff on the standard basis.
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APPEARANCES: | Counsel | Solicitors |
| For the Plaintiff | Mr M Townsend | Michael Flemming & Associates |
| For the Defendant | Mr R Miller | Best Hooper |
HIS HONOUR:
Introduction
The trial of this proceeding involved the application for the modification or discharge of a restrictive covenant, restricting, amongst other things, the erection of more than one dwelling on the land. The central issue in the trial was whether the plaintiff had established that the proposed discharge or modification would not substantially injure the persons entitled to the benefit of the covenant.
On 7 April 2014, I delivered judgment in this proceeding (Wong v McConville & Ors [2014] VSC 148) granting the application, on the basis that the plaintiff had established that the proposed discharge or modification would not substantially injure the persons entitled to the benefit of the covenant.
On that day, Counsel for the plaintiff informed the Court that three ‘without prejudice’ letters save as to costs (commonly known as Calderbank offers) were served on the defendants. Each Calderbank offer was rejected by the defendants.
Accordingly, I made directions for the parties to file affidavits and written outline of submissions on the issue of costs.
Affidavits
The solicitor for the plaintiff, Michael Anthony Flemming, filed no fewer than four affidavits in…
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- Case
- [2014] VSC 282
- Decision Date
CaseChat Overview and Summary
The court found that the first Calderbank offer made by the plaintiff was too early and not susceptible of formulation as modifications to the covenant. The second offer was not susceptible of formulation as modifications to the covenant and was in the nature of an invitation to negotiate. The court held that the need for the court to exercise its jurisdiction did not affect the availability or utility of Calderbank offers. The court also found that the abandonment of a significant ground of the application on the first day of the trial affected the costs outcome. The court held that the defendants' resistance to the application was unreasonable and ordered that the defendants' costs be paid by the plaintiff on the standard basis.
The court's decision highlights the importance of timely and well-formulated Calderbank offers in applications for the modification of restrictive covenants. The court also emphasised the need for parties to approach negotiations in good faith and to consider the availability and utility of Calderbank offers when exercising their jurisdiction under section 84 of the Property Law Act 1958. The decision also serves as a reminder that the abandonment of significant grounds of an application can affect the costs outcome. The final orders of the court were that the defendants' costs be paid by the plaintiff on the standard basis.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
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Ratio Decidendi
Legal Principle Established
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