Remedies for breach of restrictive covenants


Published by a UUÂãÁÄÖ±²¥ Property Disputes expert
Practice notes

Remedies for breach of restrictive covenants


Published by a UUÂãÁÄÖ±²¥ Property Disputes expert

Practice notes
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This Practice Note explains when Damages for breach of Restrictive covenants might be awarded in lieu of an injunction, how damages are assessed and what happens if the beneficiary delays in claiming for the breach.

Damages or injunction—the test

The primary remedy for breach of a Restrictive Covenant is a permanent injunction to restrain the breach. However, the courts have jurisdiction to award damages instead of an injunction.

The court's jurisdiction is equitable (except in the case of a breach by an original Covenantor) so the court has discretion as to the appropriate remedy. The court is entitled to consider conduct, for example, delay or inactivity by the beneficiary as evidence that an award of damages in lieu of an injunction will be appropriate.

In Shelfer v City of London Electric Lighting, the court confirmed the ‘working rule’ for awarding damages instead of an injunction was if:

  1. •

    injury to the claimant's legal rights is small

  2. •

    the injury is capable of being valued in money terms

  3. •

    it can be compensated by a small money

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Jurisdiction(s):
United Kingdom
Key definition:
Restrictive Covenant definition
What does Restrictive Covenant mean?

A covenant requiring the covenantor not to do the thing specified. The burden of a restrictive covenant binds successors in title where there is land benefiting from the covenant, the burden of the covenant was intended to run, and the successor to the covenantor has notice of the covenant.

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