Cy Pres

Question 0

Re Weir Hospital

Answer 0

Intended purpose did not represent efficient use of resources; hospital resources unsuitable and court refused cy pres

Question 1

Conditions for cy pres

Answer 1

1) impossibility/ impracticality of a carrying out original charitable purpose (Re Dominions Student Hall Trust) or existence of surplus funds after charitable purpose has been fulfilled (Re King)
2) manifestation of GCI (Re Lysaght)

Question 2

Re Harwood

Answer 2

Charity that never existed is therefore initial failure but only applies if donor had GCI; courts more likely to ascribe GCI to donor in case of gift to charity which never existed then in case where charity went defunct

Question 3

Re Satterthwaite’s will trust

Answer 3

Gift divided and where one is non charitable gift fails. If the rest are charitable does that mean that there was a GCI? Intention held in S and court decided that gift to non charitable body should be applied cy pres toward charitable purpose

Contrast - Jenkins : court refused cy pres

Question 4

Re Lepton’s Charity

Answer 4

“Spirit of the gift” ; basic intention underlying the gift as ascertained from its terms in light of admissible evidence (s13 1a ii)

• s13 1e iii: gives the courts power consider whether original purposes selected by donor represent an effective method of using property. In this case the court assumed jurisdiction to sanction the scheme.

Question 5

Re North Devon and West Somerset Relief Fund

Answer 5

S13 1b – surplus of funds can apply cy pres

Question 6

Peggs v Lamb

Answer 6

Section 13 1d: Where the class of beneficiaries from a charity is hard to identify or numbers have decreased - can apply cy pres

Question 7

Re Faraker

Answer 7

Where common purposes can be amalgamated to create larger funds (s13 1c)

Question 8

Re Lysaght

Answer 8

GCI v SCI

• GCI: paramount intention on part of donor to effect charitable purpose which the court can find a method of putting into operation.
• SCI: exists where the donor means his charitable disposition to take effect, but only if it can be carried into effect in a particular specified way. If SCI cannot be carried out then gift fails!

Question 9

Re Vernon’s Will Trust

Answer 9

Inc v Unincorporated associations
Inc– gift is intended to take effect as a beneficial gift to named body and will lapse if charity becomes defunct before testator’s death. Cy pres applies only if court find GCI

Unincorporated– takes effect for the purposes of the association and is treated as the trustee to carry out the charitable purpose. If unincorporated association becomes defunct court is entitled to ensure that trust will not fail and can appoint new trustees to continue charitable purpose ( can be rebutted if there is evidence that shows that purpose is dependent on particular existence of trustees)

Question 10

Re Slevin

Answer 10

Where property affected is already in charitable domain cy pres automatically applies without the need to prove GCI

Question 11

Re Cooper’s Conveyance

Answer 11

Limited gift made to charity that existed on day of vesting (death day) but ceased to exist at time gift took effect and court can decide for resulting trust

Question 12

Re Laing Trust

Answer 12

Original purpose under s. 13 - cy pres application and direction to distribute within a specific period of time which is admin provision outside of section 13

Question 13

Att-Gen v Ironmongers’ Company

Answer 13

‘As near as possible’ – cy pres applied when purpose to redeem British slaves in Turkey subsequently became impossible to achieve.

Question 14

Definition of cy pres doctrine

Answer 14

Applies where a charitable purpose cannot be carried out because impossible or impractical to do so.