Aust-One Investment Pty Ltd v New World Investments Pty Ltd [2022] NSWSC 137

Supreme Court New South Wales

Medium Neutral Citation: Aust-One Investment Pty Ltd v New World Investments Pty Ltd [2022] NSWSC 137 Hearing dates: 13 – 14 December 2021 Decision date: 18 February 2022 Jurisdiction: Equity Before: Robb J Decision: The plaintiff's claim and the defendant's cross claim will be dismissed. The successful party in each case is entitled to an order that the other pay its costs of the claim or cross claim. The parties should agree short minutes of order to give effect to these reasons. Catchwords: LAND LAW — positive covenants — enforceability of positive covenants between successors-in-title to original covenantor and covenantee where burden does not run with the land — whether positive covenant to pay one-quarter of monthly gross rentals of four shops erected on dominant tenement of easement enforceable by owner of servient tenement — whether payment covenant enforceable because it is of the essence of easement — whether payment covenant enforceable because of conditional benefit principle — conditional benefit principle good law in Australia — existence of easement ensured by operation of Torrens system — exercise of rights of easement dependent on performance of condition — conditional benefit principle applicable to recurrent obligations — test in Davies v Jones [2010] 1 P & CR 22; [2009] EWCA Civ 1164 adopted — benefit and burden conferred in or by same transaction — enjoyment of benefit conditional on or reciprocal to burden — whether necessary that payment covenant possess quantifiable correlation with enjoyment of easement — whether necessary that payment covenant possess correlation with other buildings on dominant tenement — opportunity or choice to disclaim benefit — whether real choice to use easements — whether condition in development approval removes choice — whether necessary that there be opportunity to disclaim all easements where multiple easements created by registered transfer LAND LAW — positive covenants — construction of positive covenants — meaning of "gross rentals" — meaning of "net rentals" compared LAND LAW — easements — construction of easements — admissibility of information beyond the register — whether unregistered deed entered into between original owner of servient tenement and local Council admissible to prove background to transaction Legislation Cited: Conveyancing Act 1919 (NSW), ss 87A, 88BA Limitation Act 1969 (NSW), s 56 Real Property Act 1900 (NSW), ss 31B, 36, 42 Cases Cited: Aspden v Seddon (1876) 1 Ex D 496 Austerberry v Corporation of Oldham (1885) 29 Ch D 750 Bursill Enterprises Pty Ltd v Berger Bros Trading Co Pty Ltd (1970-1971) 124 CLR 73; [1971] HCA 9 Cameron v Dalgety [1920] NZLR 155 Chamber Colliery Company Ltd v Twyerould [1915] 1 Ch 268n Clifford v Dove [2003] NSWSC 938; (2003) 11 BPR 21,149 Cooke v Chilcott (1876) 3 Ch D 694 Currumbin Investments Pty Ltd v Body Corp Mitchell Park Parkwood CTS [2012] 2 Qd R 511; [2012] QCA 9 Davies v Jones [2010] 1 P & CR 22; [2009] EWCA Civ 1164 Elwood v Goodman [2014] Ch 442 E R Ives Investment Pty Ltd v High [1967] 2 QB 379 Fanigun Pty Ltd v Woolworths Ltd [2006] 2 Qd R 366; [2006] QSC 28 Fermora Pty Ltd v Kelvedon Pty Ltd [2011] WASC 281 Frater v Finlay (1968) 91 WN (NSW) 730 Gallagher v Rainbow (1993-1994) 179 CLR 624 GM Amalgamated Investments (Dulwich Hill) Pty Ltd v Mills [2014] NSWCA 202; 17 BPR 33,133 Government Insurance Office (NSW) v K A Reed Services Pty Ltd [1988] VR 829 Halsall v Brizell [1957] Ch 169 Hare v Van Brugge (2013) 84 NSWLR 41; [2013] NSWCA 74 Midland Brick Co Pty Ltd v Welsh (2006) 32 WAR 287; [2006] WASC 122 Mount Cathay Pty Ltd v Lend Lease Funds Management Ltd [2013] 1 Qd R 528; [2012] QCA 274 Rhone v Stephens [1994] 2 AC 310 Rufa Pty Ltd v Cross [1981] Qd R 365 Rural View Developments Pty Ltd v Fastfort Pty Ltd [2011] 1 Qd R 35; [2009] QSC 244 Ryan v Sutherland [2011] NSWSC 1397; (2011) 16 BPR 30,101 Sertari Pty Ltd v Nirimba Developments Pty Ltd [2007] NSWCA 324 Tempe Recreation (D.500215 and D.1000502) Reserve Trust v Sydney Water Corporation (2014) 88 NSWLR 449; [2014] NSWCA 437 Tito v Waddell (No 2) [1977] Ch 106 Tulk v Moxhay (1848) 2 Ph 774; 41 ER 1143 Westfield Management Ltd v Perpetual Trustee Company Ltd (2007) 233 CLR 528; [2007] HCA 45 Wilkinson v Kerdene Ltd [2013] EWCA Civ 44; [2013] 2 EGLR 163 Texts Cited: PJ Grimes, "The Conveyancer" (1957) 31 ALJ 22 EP Aughterson, "In Defence of the Benefit and Burden Principle" (1991) 65 ALJ 319 Category: Principal judgment Parties: Aust-One Investment Pty Ltd (Plaintiff) New World Investments Pty Ltd (Defendant) Representation: Counsel: A Macauley & S Murray (Plaintiff) P Greenwood SC & C Trahanas (Defendant)