IN THE HIGH COURT OF NEW ZEALAND NELSON REGISTRY
I TE KŌTI MATUA O AOTEAROA WHAKATŪ ROHE
CIV-2022-442-000030
[2023] NZHC 519
IN THE MATTER OF An appeal against the decision of the District Court BETWEEN
BEECHNEST (2014) LIMITED
Appellant
AND
LEIGHTON WATSON MARSHALL and ALEXANDRA UNTERBERGER and NELSON TRUSTEES NO. 8 LIMITED as
trustees of the Portixol Family Trust First Respondents
AND
GISELA BARBARA PURCELL and WAYNE CALVIN POOL
Second Respondents
AND
RUSSELL MAURICE McGUIGAN and FRANCESCA FIONA DEBORAH McGUIGAN
Third Respondents
AND
ERIN LESLEY McLEOD and JARRON STEWARD McLEOD
Fourth Respondents
Hearing: 15 November 2022 Appearances:
D M O’Neill for Appellant
B McDonald for Respondents
Judgment:
15 March 2023
JUDGMENT OF GRICE J
BEECHNEST (2014) LIMITED v MARSHALL [2023] NZHC 519 [15 March 2023]
Contents
Introduction[1]
Background[8]
Grounds of appeal [14]
Principles on appeal[16]
Grounds of appeal[20]
First ground of appeal — substantial injury[23] Assumptions made on the placement of dwellings on the new lots[26] Counterfactual[31]
Views[38]
Knowledge of the subdivisions by the respondents[42]
Ambience and amenities[50]
Economic effects[56]
Conclusion on first ground of appeal[70]
Second ground of appeal — covenants imposed in error [71] Third ground of appeal — changes since the creation of covenants [82] Fourth ground of appeal — impediment of the reasonable use in a different way
[88]
Fifth ground of appeal — discretion [94]
Conclusion[110]
Costs[113]
Introduction
[1] This is an appeal by Beechnest (2014) Ltd (Beechnest)1 against a District Court judgment refusing an application under the Property Law Act 2007 to allow the modification or extinguishment of a registered land covenant restricting further subdivision of two large lots of land owned by Beechnest in a residential subdivision at St Arnaud, near Nelson.2 The area boasts spectacular alpine and wetland views and the proposal has drawn strong opposition.
[2] The modification sought would enable Beechnest to subdivide the two lots which it owns into nine lots in total, each of which could then be sold and a residential dwelling erected on each. At present, due to an apparent error, which brought down a restrictive covenant onto the two titles, only one residential dwelling can be built on each of the two lots. Not realising that, Beechnest has already obtained resource consent from the Tasman District Council to enable it to subdivide the existing Lot 55 into seven lots and Lot 20 into two lots. It has also invested approximately $600,000 in work to establish building platforms on the lots. There were already other services running up to the proposed new lots.
[3] The respondents are neighbours who own properties in the Beechnest subdivision. They opposed the application in the District Court. They say their interests will be substantially injured by the proposed subdivision. Two respondents whose houses are in the vicinity of Lots 20 and 55 are particularly concerned. The injurious effects claimed go beyond views, but include loss of amenity, ambience, and economic damage.
[4] The trial Judge concluded that the prerequisites for modifying or extinguishing the covenant under s 317 of the…
Continue reading Beechnest (2014) Limited v Marshall
Sign in free to access the full text
- AGLC
- Beechnest (2014) Limited v Marshall [2023] NZHC 519
- Case
- [2023] NZHC 519
- Decision Date
CaseChat Overview and Summary
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.