## Facts

- The case concerned interpretation and enforcement of restrictive covenants within a trust deed.
- A third party had acquired property subject to the covenant initially created under the trust deed.
- The dispute centered on whether the restrictive covenant could be enforced against the third party and the trustees' obligations in enforcing it.
- The case was adjudicated by the Chancery Division and addressed issues involving both beneficiaries and trustees regarding administration of the trust.

## Issues

1. Whether a restrictive covenant in a trust deed may be enforced against a third party who acquires the property subject to that covenant.
2. Whether the trustee has a fiduciary duty to enforce the terms of the covenant for the benefit of the beneficiaries.
3. What legal remedies are available to beneficiaries when trustees fail to uphold trust obligations.

## Decision

- The court determined that restrictive covenants, while generally personal, may create proprietary interests which can bind third parties in specific circumstances.
- The restrictive covenant in question was interpreted as running with the land, creating obligations enforceable against subsequent owners.
- Trustees were found to have a fiduciary obligation to uphold and enforce the terms of the trust deed in the interests of the beneficiaries.
- Legal remedies such as injunctions and damages may be available to beneficiaries against trustees failing in their duties.
- The court emphasized the importance of giving effect to the intentions of the parties as expressed in the trust deed.

## Legal Principles

- Restrictive covenants in trust deeds can create proprietary interests, thereby binding third parties when intended to run with the land.
- Trustees hold a fiduciary duty to act in the best interests of beneficiaries and to follow explicitly the terms of trust instruments.
- Equitable doctrines, including "equity regards as done that which ought to be done," can extend the enforceability of such covenants beyond strict privity of contract.
- The drafting and clarity of trust instruments are fundamental to the determination and enforceability of trustee obligations.

## Conclusion

Re Cavendish Browne [1916] WN 34 confirmed that restrictive covenants may be enforceable against third parties when they create proprietary interests and highlighted trustees’ fiduciary duties to uphold trust terms; the case remains significant for its clarification of the intersection between trust law and property rights.