Goodman & Ors v Elwood [2013] EWCA Civ 1103 (04 September 2013)

Goodman & Ors v Elwood [2013] EWCA Civ 1103 (04 September 2013)

The covenant in clause 3(a) is enforceable against the appellants, including Mr Elwood as successor, and the benefit and burden principle applies to require contribution to maintenance of Roadway 4 as it existed at the date of transfer, but not to subsequent improvements (additional 1m strip and street lights).

Citation
[2013] EWCA Civ 1103
Parties
Appellant/defendant: Frank Robert Goodman; Appellant/defendant: Michael Stephens; Appellant/defendant: M & R Property Holdings Limited; Respondent/claimant: Brendan Elwood
Jurisdiction
England and Wales
Judgment Date
04 September 2013
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed in part and dismissed in part
Legal Topics
Positive Covenants, Benefit and Burden Principle, Maintenance Contributions, Land Registration
Property Law Equity Conveyancing Positive Covenants Benefit and Burden Principle Maintenance Contributions Land Registration

Case Brief

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Parties

Frank Robert Goodman

Appellant/defendant

Michael Stephens

Appellant/defendant

M & R Property Holdings Limited

Appellant/defendant

Brendan Elwood

Respondent/claimant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether original purchasers are contractually liable under covenants to contribute to maintenance costs of Roadway 4
  2. 2 Whether liability extends under the equitable benefit and burden principle
  3. 3 Whether liability includes maintenance of an additional 1m strip and street lights added post-acquisition

Ratio Decidendi

The covenant in clause 3(a) is enforceable against the appellants, including Mr Elwood as successor, and the benefit and burden principle applies to require contribution to maintenance of Roadway 4 as it existed at the date of transfer, but not to subsequent improvements (additional 1m strip and street lights).

Court Disposition

Appeal allowed in part and dismissed in part

Orders

  • Appeal allowed regarding scope of obligation to contribute to maintenance of additional 1m strip and street lights
  • Appeal dismissed regarding contractual and equitable liability to contribute to maintenance of Roadway 4 as originally constituted