A dispute over the purchase of a piece of charity land has moved to the Court of Appeal.
The case concerns a charity that failed to complete on a contract for the sale of its former headquarters on the basis that it had not first obtained a surveyor’s report in compliance with section 36(3) of the Charities Act 1993.
The charity, the Women’s Total Abstinence Educational Union Ltd, is attempting to ward off an Appeal Court challenge by the proposed purchaser, property developer James Perkins, to a December High Court ruling that backed the charity’s stance.
The court was told by counsel that the result of the appeal could have wide implications in all purchases of charity land and in the supervision of charities generally.
Challenging the judge’s ruling in the Court of Appeal, Andrew Simmonds QC, counsel for Perkins, argued that a contract for sale is “valid” only if the purchaser provides value for money and acts in good faith.
Michael Furness QC, counsel for the charity, argued that this would “undermine the restriction on sales in section 36” and “emasculate the protection against sales at an undervalue which the Act is designed to provide”.
The hearing continues.
Bayoumi v Women’s Total Abstinence Educational Union Ltd and another Court of Appeal (Chadwick, Buxton and Rix LJJ) 9 October 2003.
References: EGi Legal News 10/10/03
