QEII covenants and the Kaimai Properties Limited litigation: What it means for landowners

If you own or plan to buy rural land, a recent Supreme Court ruling makes it clear that QEII covenants are permanent and can restrict development – even if you weren’t the original party to the covenant.

What are QEII covenants?

Queen Elizabeth II National Trust (QEII) covenants are voluntary agreements entered into by landowners and the QEII National Trust to protect areas of private land with significant native biodiversity values as well as historical sites and areas with high scenic values.

These covenants are permanent. Once registered, they “run with the land”.  This means the covenants remain in place and automatically bind future landowners.

Today, more than 5,000 QEII covenants protect over 180,000 hectares of private land across New Zealand.

The covenants are designed to safeguard biodiversity and heritage.  While the landowners retain ownership and management rights (including paying rates on the land) – the covenants will often prevent future development that can undermine the protected values.

Kaimai Properties Limited: a history of litigation

The recent Supreme Court decision in Kaimai Properties Ltd & Anor v QEII National Trust & Anor[1] may be the end of a long-running dispute over a QEII covenant in the Kaimai Ranges.

The covenant, registered in 2007, protects 111 hectares of native bush.  The covenant provides, amongst other things, that:

• Nothing can be done on the land that in the opinion of the QEII Board materially alters the appearance or condition of the land or is prejudicial to it being an area of open space.
• The owner of the land cannot carry out quarrying activities on the land without the prior consent of the QEII Board.

In 2009, Kaimai Properties Limited purchased the land.  They knew the covenant existed before they purchased the land.

Kaimai Properties later sought to expand its quarry operations into the covenant protected area, arguing the covenant was invalid or should be rectified to allow quarrying.

From 2017 until 2025, Kaimai Properties made multiple legal challenges and arguments against the covenant to try and allow quarrying on the land, including.

• High Court proceedings to re-interpret or rectify the covenant terms.
• Court of Appeal proceedings against the findings of the High Court. The appeals were not granted.

These culminated in the 2025 Supreme Court decision to refuse to grant Kamai Properties’ further leave to appeal.

Ultimately, Kaimai Properties’ attempts to argue that the covenant should be varied or reinterpreted, or it should have been consulted (as it held a mortgage over the land) before the covenant was registered, or that the covenant process was flawed, were all rejected. The Supreme Court also noted there was no grounds of public importance or miscarriage of justice to justify further appeal.

Why this matters

These Court cases are important for landowners and potential purchasers of land subject to QEII covenants.  The Court cases deliver some key messages:

• QEII covenants are permanent (unless the covenant specifically provides otherwise). This means once they are registered, they cannot be removed or overridden by subsequent owners (except with QEII’s approval which does not need to be provided).
• QEII covenants are robust when challenged and are legally binding. Courts will uphold them.

This means an owner or a purchaser of land subject to a QEII covenant needs to clearly understand the effect of the covenant on their current and future use of their land (and also any related effect on land values).  Because once a QEII covenant is in place it is very hard to remove.

[1] Kaimai Properties Ltd & Anor v QEII National Trust & Anor [2025] NZSC 32 [8 April 2025].

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