“TIED” HOUSES.

Lyttelton Times, Volume CI, Issue 11887, 10 May 1899, Page 6

“TIED” HOUSES.

[Pbb- Press Association.! WELLINGTON, May 9.

The argument of Sir E. Stout, for the plaintiff company, in the case of Staples and Co. v. Corby, was concluded shortly after the opening of the Court this morning, and Mr Bell then addressed the Court on the same side. Mr Bell laid down the following propositions, which he contended had been established by authority:— (1) That the principle in equity is that the assignee of a property with notice of a restrictive covenant, will be restrained from use of the property, so as_ to contravene that covenant; (2) that in application of the principle there is no distinction between land and any other kind of property,- (3) that it is not necessary that the covenant should be one which in ,law runs with the land; (4) that the covenant now in question does run with the land; (5) that the covenant is restrictive; (6) that the doctrine that some estate in the covenantee is necessary to support the covenant has been overruled; (7) that the common law doctrine that the burden of the covenant does not run against an assignee'of a grantee does not apply in equity iu the case of a restrictive covenant. Mr Morrison, for the defendant, submitted that the purchaser of the fee simple, with notice of a restrictive covenant, is hound only if the covenant is a- negative covenant, if it is a covenant to, abstain from the use of the land of the covenantee in a particular. way, and if .it is entered into for the benefit of some definite property which, at the time the covenant is sought to he enforced, is owned by the person claiming the benefifcof the covenant. Counsel further submitted that the covenant sought to be enforced in the present case is not a covenant to abstain from using the land in a particular, way within the meaning of the authorities. It is also contended for the defendant that the issue of an injunction is discretionary, and that the Court should not, in view of the provisions of the Alcoholic Liquors Sale Control Acts, issue a writ in the present case. Mr Morrison was addressing the Court at the adjournment.