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England and Wales High Court
(Chancery Division) Decisions
You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Tulk v Moxhay [1848]
EWHC Ch J34 (22 December 1848)
URL: https://www.bailii.org/ew/cases/EWHC/Ch/1848/J34.html
Cite as: 41 ER 1143, [1848] 41 ER 1143, [1848] EWHC Ch J34
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JISCBAILII_CASE_PROPERTY
IN THE HIGH COURT OF CHANCERY
41 ER 1143
TULK
-v-
MOXHAY
22 December 1848
In the year 1808 the Plaintiff, being then the owner in fee of the vacant piece of ground in
Leicester Square, as well as of several of the houses forming the Square, sold the piece of
ground by the description of "Leicester Square garden or pleasure ground, with the
equestrian statue then standing in the centre thereof, and the iron railing and stone work
round the same," to one Elms in fee: and the deed of conveyance contained a covenant by
Elms, for himself, his heirs, and assigns, with the Plaintiff, his heirs, executors, and
administrators, "that Elms, his heirs, and assigns should, and would from time to time, and
at all times thereafter at his and their own costs and charges, keep and maintain the said
piece of ground and square garden, and the iron railing round the same in its then form,
and in sufficient and proper repair as a square garden and pleasure ground, in an open
state, uncovered with any buildings, in neat and ornamental order; and that it should be
lawful for the inhabitants of Leicester Square, tenants of the Plaintiff, on payment of a
reasonable rent for the same, to have keys at their own expense and the privilege of
admission therewith at any time or times into the said square garden and pleasure ground."
The piece of land so conveyed passed by divers mesne conveyances into the hands of the
Defendant, whose purchase deed contained no similar covenant with his vendor: but he
admitted that he had purchased with notice of the covenant in the deed of 1808.
The Defendant having manifested an intention to alter the-character of the square garden,
and asserted a right, if he thought fit, to build upon it, the Plaintif f, who still remained
owner of several houses in the square, filed this bill for an injunction; and an injunction
was granted by the Master of the Rolls to restrain the Defendant from converting or using
the piece of ground and square garden, and the iron railing round the same, to or for any
other purpose than as a square garden and pleasure ground in an open state, and uncovered
with buildings.
On a motion, now made, to discharge that order,
Mr. R. Palmer, for the Defendant, contended that the covenant did not run with the land, so
as to be binding at law upon a purchaser from the covenantor, and he relied on the dictum
of Lord Brougham C. in Keppell v. Bayley (2 M. & K. 547), to the effect that notice of
such a covenant did not give a Court of Equity jurisdiction to enforce it by injunction
against such purchaser, inasmuch as "the knowledge by an assignee of an estate, that his
assignor had assumed to bind others than the law authorised him to affect by his contract-
had attempted to create a burthen upon property which was inconsistent with the nature of
that property, and unknown to the principles of the law-could not bind such assignee by
affecting his conscience." In applying that doctrine to the present case, he drew a
distinction between a formal covenant as this was, and a contract existing in mere
agreement, and requiring some further act to carry it into effect; contending that executory
contracts of the latter description were alone such as were binding in equity upon
purchasers with notice; for that where the contract between the parties was executed in the
form of a covenant, their mutual rights and liabilities were determined by the legal
operation of that instrument, and that if a Court of Equity were to give a more extended
operation to such covenant, it would be giving the party that for which he had never
contracted. He admitted, indeed, that the decisions of the Vice-Chancellor of England in
Whatman v. Gibson (9 Sim. 196) and Schreiber v. Creed (10 Sim. 35) were not
reconcileable with that doctrine; but he referred to the present Lord Chancellor's order, on
appeal, in Mann v. Stephens (15 Sim. 379), as apparently sanctioning it by the liberty there
given to the Plaintiff to bring an action, from which it was to be inferred that his Lordship
thought that the right of the Plaintiff to relief in equity depended upon, and was
commensurate with, his right of action upon the covenant at law.
THE LORD CHANCELLOR [Cottenham], (without calling upon the other side). That this
Court has jurisdiction to enforce a contract between the owner of land and his neighbour
purchasing a part of it, that the latter shall either use or abstain from using the land
purchased in a particular way, is what I never knew disputed. Here there is no question
about the contract: the owner of certain houses in the square sells the land adjoining, with
a covenant from the purchaser not to use it for any other purpose than as a square garden.
And it is now contended, not that the vendee could violate that contract, but that he might
sell the piece of land, and that the purchaser from him may violate it without this Court
having any power to interfere. If that were so, it would be impossible for an owner of land
to sell part of it without incurring the risk of rendering what he retains worthless. It is said
that, the covenant being one which does not run with the land, this Court cannot enforce it;
but the question is, not whether the covenant runs with the land, but whether a party shall
be permitted to use the land in a manner inconsistent with the contract entered into by his
vendor, and with notice of which he purchased. Of course, the price would be affected by
the covenant, and nothing could be more inequitable than that the original purchaser
should be able to sell the property the next day for a greater price, in consideration of the
assignee being allowed to escape from the liability which he had himself undertaken.
That the question does not depend upon whether the covenant runs with the land is evident
from this, that if there was a mere agreement and no covenant, this Court would enforce it
against a party purchasing with notice of it; for if an equity is attached to the property by
the owner, no one purchasing with notice of that equity can stand in a different situation
from the party from whom he purchased. There are not only cases before the Vice-
Chancellor of England, in which he considered that doctrine as not in dispute; but looking
at the ground on which Lord Eldon disposed of the case of The Duke of Bedford v. The
Trustees of the British Museum (2 My. & K. 552), it is impossible to suppose that he
entertained any doubt of it. In the case of Mann v. Stephens before me, I never intended to
make the injunction depend upon the result of the action: nor does the order imply it. The
motion was, to discharge an order for the commitment of the Defendant for an alleged
breach of the injunction, and also to dissolve the injunction. I upheld the injunction, but
discharged the order of commitment, on the ground that it was not clearly proved that any
breach had been committed; but there being a doubt whether part of the premises on which
the Defendant was proceeding to build was locally situated within what was called the
Dell, on which alone he had under the covenant a right to build at all, and the Plaintiff
insisting that it was not, I thought the pendency of the suit ought not to prejudice the
Plaintiff in his right to bring an action if he thought he had such right, and, therefore, I
give him liberty to do so
[1]
.
With respect to the observations of Lord Brougham in Keppell v. Bailey, he never could
have meant to lay down that this Court would not enforce an equity attached to land by the
owner, unless under such circumstances as would maintain an action at law. If that be the
result of his observations, I can only say that I cannot coincide with it.
I think the cases cited before the Vice-Chancellor and this decision of the Master of the
Rolls perfectly right, and, therefore, that this motion must be refused, with costs.
Note 1 Quere, whether, if this was the object, an issue ought not to have been directed, as an action would depend not
merely on the issue of fact, which was alone in dispute, but also upon whether the covenant ran with the land. It is
clear, however, from the form of the order, that the injunction was not considered to depend upon the action; for if that
had been the case, the Plaintiff would have been ordered, and not merely left at liberty, to bring an action.
SeeSpottiswoode v. Clarke, ante, p. 158. [Back]
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URL: https://www.bailii.org/ew/cases/EWHC/Ch/1848/J34.html
The landmark decision in Tulk v Moxhay [1848] EWHC Ch J34 is a cornerstone of English property law, fundamentally shaping the doctrine of restrictive covenants. This pivotal Tulk v Moxhay case summary, readily available on CaseOn, explores how the Court of Chancery established that a person who acquires land with notice of a restrictive promise is bound by it, even without a direct contractual link to the original promisee. This case illustrates the crucial intervention of equity to enforce fairness where common law principles fell short.
In 1808, the plaintiff, Mr. Charles Tulk, owned a vacant piece of land in Leicester Square, along with several houses surrounding it. He sold the central plot of land to a Mr. Elms. The sale deed included a specific covenant: Mr. Elms, and importantly, his heirs and assigns, promised to maintain the land as a “square garden and pleasure ground,” keeping it in an open state, free from any buildings, and in good repair. This covenant was intended to preserve the pleasant view and character of the square for the benefit of the residents in Tulk’s other properties.
Over the years, the land changed hands multiple times. Eventually, it was purchased by the defendant, Mr. Moxhay. Crucially, while Moxhay’s own purchase deed did not contain the restrictive covenant, he admitted that he was fully aware of its existence from the original 1808 conveyance when he bought the property. Despite this knowledge, Moxhay declared his intention to build upon the garden, fundamentally altering its character. Mr. Tulk, who still owned houses in the square, sought an injunction from the High Court of Chancery to prevent Moxhay from developing the land.
The central issue before the court was whether Mr. Moxhay was bound by the covenant from the 1808 deed, even though he was not a party to that original contract and the covenant did not, under strict common law rules, “run with the land” to bind all future owners.
At common law, for a covenant to "run with the land" and bind subsequent owners, a strict set of conditions, including 'privity of estate,' had to be met. The defendant argued that these conditions were not satisfied, and therefore, he was free to ignore the promise. However, the court was asked to look beyond the rigid rules of common law and consider the principles of equity, specifically the doctrine of notice. This doctrine posits that a person who purchases an asset with knowledge of a pre-existing interest or 'equity' affecting it cannot in good conscience ignore that interest.
The Lord Chancellor, Lord Cottenham, focused on the inherent unfairness of the defendant’s position. He reasoned that the original purchaser, Mr. Elms, would have paid a lower price for the land specifically because of the building restrictions. If a subsequent purchaser like Moxhay, who bought with full knowledge of these same restrictions, were allowed to ignore them, it would be a clear injustice. The original seller, Tulk, would lose the benefit of the covenant he had bargained for, and the new owner would gain an unearned windfall by developing land he knew was supposed to remain open.
The Lord Chancellor made it clear that the case did not depend on whether the covenant ran with the land at common law. Instead, the critical factor was that the defendant had purchased the land with notice of the covenant. He stated, “...if an equity is attached to the property by the owner, no one purchasing with notice of that equity can stand in a different situation from the party from whom he purchased.” The court was enforcing a matter of conscience. To allow Moxhay to proceed would be to permit him to breach a known obligation tied to the land he had acquired.
Understanding the nuanced reasoning in rulings like this is crucial for legal professionals. For those short on time, CaseOn’s 2-minute audio briefs provide a concise yet comprehensive analysis, helping you grasp the core principles of landmark cases like Tulk v Moxhay in moments.
The court upheld the injunction, restraining Moxhay from building on Leicester Square. The decision established the enduring principle that a negative or restrictive covenant can bind future owners of land who acquire it with notice, regardless of whether the covenant runs with the land at common law. This created a new equitable interest in land, allowing property to be developed and used in a controlled manner for the benefit of neighbouring land.
The Court of Chancery held that a covenant between a vendor and a purchaser restricting the use of the purchased land could be enforced in equity against all subsequent purchasers who had notice of that covenant. The court rejected the argument that only covenants that 'run with the land' at common law are enforceable. The decision was based on the principle of notice and the prevention of unconscionable conduct, ensuring that a purchaser could not disregard a known restriction simply because he was not a party to the original agreement.
This case is a foundational text in property law. It perfectly illustrates the dynamic relationship between common law and equity, showing how equity intervenes to provide a remedy where the common law is too rigid. It is a classic example of the 'notice' doctrine and is essential for understanding the enforceability of restrictive covenants on freehold land.
The principles laid down in Tulk v Moxhay remain highly relevant in modern conveyancing, property litigation, and planning law. Practitioners dealing with land transactions must have a firm grasp of this doctrine to advise clients on the burdens and benefits affecting a property. The case serves as a constant reminder that what is recorded in a title, and what a purchaser knows, can have profound and lasting legal consequences.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute legal advice. Readers should consult with a qualified legal professional for advice on any specific legal issue.
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