Restrictive Covenants: Transfer Of Benefit And Burden

Goodman & Ors v Elwood [2013] EWCA Civ 1103

Facts

This dispute centred on the Defendants' liability to contribute to the cost of maintaining an estate road used to access their industrial units.

Prior to 1986, the estate – including its roads – was owned by Dobson Park Properties Limited ("D") and there were negotiations for the Defendants to purchase the freehold of their units (which they occupied as tenants). At the same time, D was negotiating with Mr Elwood ("E") to sell part of the estate to him, including the estate roads. The Defendants were aware of this and were informed that E would grant them the necessary rights of way over the estate roads and that E would be responsible for maintaining the road, provided that the Defendants contributed to the cost of doing so.