THE INCORPORATED OWNERS OF NINE QUEEN\'S ROAD CENTRAL and Another v. MINKIND DEVELOPMENT LTD.

THE INCORPORATED OWNERS OF NINE QUEEN\'S ROAD CENTRAL and Another v. MINKIND DEVELOPMENT LTD.

The naming covenant did not create enforceable obligations against subsequent purchasers who did not expressly assume the obligation or where the covenant did not properly run with the land; the documents did not establish clear privity or an effective mechanism (trust, agency or express annexation) to bind remote assignees, and the pure benefit-and-burden principle could not be invoked to imply such contractual obligations here; accordingly the Plaintiffs were entitled to injunctive relief and declarations.

Citation
THE INCORPORATED OWNERS OF NINE QUEEN\'S ROAD CENTRAL and Another v. MINKIND DEVELOPMENT LTD.
Parties
1st Plaintiff: The Incorporated Owners of 9 Queen's Road Central; 2nd Plaintiff: JLW Management Services Limited; Defendant: Minkind Development Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 May 1997
Case Number
HCMP3979/1996
Procedural Posture
High Court Miscellaneous Proceeding / Judgment (handed Down 23 May 1997)
Outcome
Plaintiffs' claims allowed; injunction and declarations granted in favour of the Plaintiffs
Legal Topics
Restrictive Covenants, Deed of Mutual Covenant, Naming Rights, Benefit and Burden Principle, Successors in Title, Injunctions, Declarations
Source Language
EN
Property Law Contract Law Equity Real Property Civil Procedure Restrictive Covenants Deed of Mutual Covenant Naming Rights +4 more

Case Brief

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Parties

The Incorporated Owners of 9 Queen's Road Central

1st Plaintiff

JLW Management Services Limited

2nd Plaintiff

Minkind Development Limited

Defendant

Procedural Posture

High Court Miscellaneous Proceeding / Judgment (handed Down 23 May 1997)

Legal Issues

  1. 1 Whether the defendant is entitled to change the building name under the DMC and assignments
  2. 2 Whether the naming covenant is enforceable against subsequent purchasers lacking privity
  3. 3 Whether the pure principle of benefit and burden applies to compel successors to accept the naming obligation

Ratio Decidendi

The naming covenant did not create enforceable obligations against subsequent purchasers who did not expressly assume the obligation or where the covenant did not properly run with the land; the documents did not establish clear privity or an effective mechanism (trust, agency or express annexation) to bind remote assignees, and the pure benefit-and-burden principle could not be invoked to imply such contractual obligations here; accordingly the Plaintiffs were entitled to injunctive relief and declarations.

Court Disposition

Plaintiffs' claims allowed; injunction and declarations granted in favour of the Plaintiffs

Orders

  • Perpetual injunction restraining the Defendant from affixing or changing any building name signs or renaming the building without authority
  • Declarations that the Defendant is not entitled to name or rename the building without the consent of all owners, that the Plaintiffs are not obliged to adopt any name determined by the Defendant, and that the 2nd Plaintiff is not liable to comply with Defendant's instructions concerning signs or the name of the...