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Gould Developments Ltd v Beardsley [2021] NZDC 11580

Published 10 January 2024

Reasons judgment — modifying land covenants — Property Law Act 2007, ss 316 & 317 — Synlait Milk Ltd v New Zealand Industrial Park Ltd [2020] NZSC 157. The judgment concerned an area of residential land that operated under a set of restrictive covenants that bound the local landowners. Since the covenants were originally imposed in 1995, the character of the land had changed from semi-rural to being a residential subdivision, in keeping with changes to the local District Plan and a 2018 court order that had allowed infill housing in the area. However more recently the Registrar General of Land had set a new policy that meant that all existing interests and encumbrances over properties had to be extinguished before roads were allowed to be built. In this matter, the plaintiff sought orders adding a new covenant allowing land to vest in the local authority free of encumbrances without obtaining the consent of all affected landowners. The Court found that since the covenants were created, there had been a change in the use made to the land and to the character of the neighbourhood. To allow the covenants to continue in force unmodified would impede the reasonable use of the land, and the plaintiff would suffer loss if the modification was not allowed. Since the application was served on all affected landowners, only the defendants had opposed the proposed change. The Court found that the proposed change would create no prejudice to the defendants or to any other landowner. The application was granted. Judgment Date: 16 June 2021

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