Wrotham Park Estate Co v Parkside Houses [1974] 1 WLR 798

Chancery Division

Basic Facts : The owner of an estate sold a parcel of land to a developer, subject to a covenant that prohibited the developer from constructing on the land without the estate owner's approval. This covenant was registered as a Class D charge under the Land Charges Act 1925. The developer built on the land surrounding the undeveloped area but left the specific patch of land undeveloped. In 1955, this patch was sold to a local authority and subsequently sold again in 1971 with approved planning permission. The plaintiff sought an injunction to stop construction on the land, but the defendant proceeded with the building.

Issue for the Court : In what way must a restrictive covenant burden “touch and concern the land” in order to pass with the land?

Held :The court awarded damages in lieu of an injunction for breach of a restrictive covenant, emphasizing the discretion of the court in balancing competing interests.

Brightman J

• A covenant is enforceable if it benefits the covenantee’s land and is properly defined.

• Covenants intended to protect retained land are valid if they serve a reasonable purpose.