Covenants — Dwelling-houses — No business user — No detriment to transferor or other occupiers — Houses occupied by mental patients — Whether breach of covenants — Declaration granted to plaintiffs
The plaintiff company were the developers of Charlcombe Park, Dean Hill Lane, Weston Park, Bath, a residential estate of 22 4 or 5-bedroomed detached houses selling for £190,000 — £240,000. The defendant Secretary of State for Health purchased two of the houses. The transfers were subject to restrictive covenants by which the transferee was not to do any act producing a nuisance or detriment to the transferor or other occupiers and not for 10 years to carry on any trade, business etc but to use the premises only as private dwelling-houses.
The defendant proposed using and had used the houses for mental patients who could be integrated into the community. The patients were supervised although it was hoped the supervision would diminish. The plaintiffs moved for a declaration and damages, contending that the use was a breach of the restrictive covenants.
Held The declarations were granted and an inquiry ordered as to damages.
If the Secretary of State were the occupier, he was not occupying the houses as dwellings in compliance with the covenants. The patients did not pay the defendant but profit was not necessary to indicate a business: see Rolls v Miller (1884) 27 Ch D 71. However, the patients who were in occupation were not there as an ordinary family unit. Further, there was evidence that potential purchasers of other houses were deterred by the use of the two houses; there was, therefore, “detriment”. Accordingly, there was a breach by the defendant of both covenants.
William Blackburne and Stephen Whitaker (instructed by Laytons, of Bristol) appeared for the plaintiffs; and John MacDonald and David Van Hee (instructed by Thrings & Long, of Bath) appeared for the defendant.
