The Court of Appeal has upheld a High Court ruling that a covenant restricting the use of a former pub to “housing of the working classes” was not enforceable.
Although the High Court found that the working class still exists, it ruled that the covenant no longer applied to any of the land in question because the “Cadogan settled estate”, which enjoyed the benefit of the restriction, no longer existed in the way that it had when the covenant was drawn up.
Rejecting an appeal by Britain’s wealthiest landowner, the eighth Earl Cadogan, the appeal judges yesterday gave London-based property company Dano Ltd the go-ahead to carry out development on the site of a disused pub, formerly known as the Rat and Parrot, in Chelsea. The court was told that the developer stands to make £4m from of the deal.
The Earl Cadogan now faces a legal costs bill of £36,000.
Dano Ltd v Cadogan and others Court of Appeal (Schiemann and Carnwath LJJ and Sir Christoper Staughton) 19 May 2003.
Elizabeth Appleby QC and Toby Davey (instructed by Pemberton Greenish) appeared for the appellants; Michael Barnes QC and Rupert Reed (instructed by Gouldens) appeared for the respondent.
References: PLS News 20/5/03
