Domus Living Limited v Edward VII Estates Limited

Decision date: 21 October 2026

Neutral citation: [2026] UKUT 407 (LC)

Overall AI summary confidence: high

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: high

This appeal concerned Domus Living's successful application to discharge a restrictive covenant and its claim for costs against objector Edward VII Estates. The Tribunal found the objector had unreasonably persisted in a hopeless objection lacking evidential foundation and ordered the objector to pay the applicant's costs on the standard basis, refusing indemnity costs despite criticism of aspects of the applicant's conduct and expert evidence. Directions were given for assessment and any interim payment.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: high

An unsuccessful objector to a covenant-discharge application can be ordered to pay the applicant's costs where the objector persists in an objection that is without substance and lacks an evidential foundation; costs must be grounded in the party’s unreasonable conduct rather than in allegations of motive or unpleaded bad faith.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: high

The Tribunal observed that costs orders are determined by parties’ conduct rather than presumed motivations; failing to put allegations of bad faith to a witness at the hearing weakens reliance on those allegations; and procedural or expert failings by a successful applicant may justify refusing indemnity costs even while ordering costs on the standard basis.