Caroline Shea KC and Richard Miller of Falcon Chambers examine the growing judicial focus on 'cynical breach' in restrictive covenant cases, in this week's issue of NLJ
Following Alexander Devine Children’s Cancer Trust v Housing Solutions Ltd, the Upper Tribunal has repeatedly refused to modify covenants where developers built first and applied later. Recent rulings show that deliberate, profit-driven breaches—dubbed 'cynical'—can doom even otherwise valid applications under s 84(1) of the Law of Property Act 1925.
Shea and Miller review later cases, noting how tribunals distinguish naïve or altruistic mistakes from calculated defiance. They urge developers to document reasons for early construction, seek timely injunctions or consents, and avoid relying on self-created breaches to justify modification.
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