The applicant, Icona Hospitality Inc., sought an order under s. 61(1) of the Conveyancing and Law of Property Act to delete restrictive covenants from the title to its land.
The covenants restricted the site's use solely to a hotel.
Icona proposed a mixed-use high-rise redevelopment, arguing the covenants were spent or unsuitable due to changed planning policies and the area's designation as an Urban Growth Centre.
The respondents, beneficiaries of the covenants, opposed the application, citing potential negative impacts on their own development plans and market competition.
The court dismissed the application, finding that Icona failed to demonstrate that the covenants were spent or so unsuitable as to be of no value, or that their assertion by the respondents would be vexatious.
The court emphasized that the jurisdiction under s. 61(1) must be exercised with caution and an order will seldom be granted if prejudicial to the adjacent landowner, rejecting a simple balancing of monetary interests.