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Area of Law: Charities
Jonathan Fowles acted for the Attorney General in The Keepers and Governors of the Possessions, Revenues and Goods of the Free Grammar School of John Lyon, within the Town of Harrow-on-the-Hill v Attorney General [2024] EWHC 2857 (Ch). The case concerned Harrow School’s claim for a cy-près scheme to expand and update its objects originally set out in a Royal Charter of 1572. In his judgment, the Hon. Mr Justice Rajah rejected the claim. The judgment is important for its discussion of the cy-près jurisdiction and as the first authority on certain provisions of the Public Schools Act 1868 which was passed to reform the affairs of 7 leading public schools, including Harrow, following the report of the Clarendon Commission.
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Jonathan Fowles acted for the successful Respondents in Daji v Mohammed [2024] EWCA 1247, led by Mark Sefton KC of Falcon Chambers.
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Jonathan Fowles, led by Mark Sefton KC of Falcon Chambers and instructed by Mishcon de Reya LLP, acted for the successful claimants in Mohammed v Daji [2023] EWHC 2761 (Ch). The successful claim was to establish that a very substantial site at Abbey Mills in East London is held by the claimants on a charitable trust associated with a particular Sunni Muslim community in the London region. The judgment of HHJ Cadwallader, sitting as a Chancery Judge, is of significance for trusts and charities lawyers. In particular, the judgment sets out and applies the law relating to trusts established by charity appeals to a complicated factual history, and further develops the principle of delegated authority to declare charitable trusts in Attorney-General v Mathieson [1907] 2 Ch 383.
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On 27 May 2022, The Supreme Court granted permission to appeal to the London Borough of Merton Council from the decision of the Court of Appeal in Nuffield Health v Merton [2022] Ch 1.
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Gareth Tilley acted as junior counsel for the Official Receiver in Re Keeping Kids Company; Official Receiver v Atkinson, the disqualification proceedings arising from the collapse of the charity Kids Company. These are believed to be the first-ever proceedings for disqualification of charity trustees as company directors and they raise questions about the standard to be applied to unpaid trustee directors, whether a remunerated charity CEO can or ought to be classified as a de facto company director, and what degree of latitude the trustee directors have in relation to the pursuit of charitable objects when the company is of doubtful solvency.
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In Children’s Investment Fund Foundation (UK) v Attorney General [2020] UKSC 33, the Claimant charitable company had agreed to make a grant of US$360m to another English charity conditionally on the approval of the court. The payment of the grant required the approval of the members under section 217 Companies Act 2006. The Supreme Court held that the members owed fiduciary duties and that the court had an exceptional jurisdiction to order them how to vote, even if they had not and were not threatening to vote in breach of duty. The majority of the Supreme Court also held that by reason of the High Court having, on the directors’ surrender of discretion, held that it was in the best interests of the charity for the grant to be paid; the members, who were parties to that decision were bound by it and, absent a substantial change in circumstances were bound to vote in favour of it, even if, but for the judicial decision, they could reasonably have voted against it. Will Henderson acted for the charitable company.
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Jonathan Fowles acted with Cain Ormondroyd (Francis Taylor Building) for Merton Council in defending a claim to establish charitable exemption from non-domestic rates for one of Nuffield Health’s fitness and wellbeing centres. The claim succeeded, but the Court of Appeal has given Merton permission to appeal. The case raises important issues about the charitable exemption and the public benefit test in charity law.
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Constance McDonnell QC was a junior counsel for the respondant in Illot v The Blue Cross [2017] UKSC 17, a landmark case in the Supreme Court and the first claim under the Inheritance (Provision for Family and Dependants) Act 1975 ever to be considered at that level. 7 Justices of the Supreme Court considered the criteria to be assessed in such claims, and their judgment in March 2017 attracted widespread national press headlines.
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