Facts
- The defendants (Wilkinson) purchased a bungalow in a holiday village later owned by Kerdene Ltd, which sought to restore the village after it had fallen into disrepair
- The conveyance contained a right to use recreational facilities and roads within the village, and a (separate) obligation to pay an annual fee to Kerdene Ltd for village maintenance
Issue
- Was the covenant enforceable by Kerdene Ltd?
Decision
- Yes
Reasoning
- Under the doctrine of benefit and burden, the right and obligation were linked
- As the fee could not be apportioned, and a fair amount of the fee would be put towards maintaining the defendant’s benefit, the whole fee was enforceable
- This case was decided amongst 8 cases which involved the holiday village, and 100 separate claims against all of the bungalows owned in the village – most were settled out of court
