Fraser & Anor v Canterbury Diocesan Board of Finance & Anor

Under the School Sites Act 1841, reverter depends on whether the land has ceased to be used for the purpose identified in the conveyance. A school may breach its trust by admitting persons outside the specified class or district without thereby ceasing to be used for the permitted purpose. Where land is used for permitted purpose A and also for impermissible purpose B, use for A does not cease merely because B is pursued as well. A school may remain within its trust while forming part of the state education system, provided it continues to perform the trust purpose. Reverter therefore does not arise merely because a school educates some non-qualifying pupils or ceases to educate adults.

The claimants asserted rights arising from a 1866 conveyance of land for St Philips School, Maidstone, made under the School Sites Act 1841. The land was conveyed for a school educating children and adults of the labouring, manufacturing and other poorer classes in the ecclesiastical district of St Philip Maidstone, and for no other purpose.

The defendants contended that reverter had occurred before 17 August 1975 because the school admitted pupils from outside the district and from other social classes, ceased to educate adults, and became part of the state education system. The preliminary issue was whether reverter had occurred before the commencement of the Reverter of Sites Act 1987, so that the claimants’ title had become statute barred.

1. Preliminary issue. The court answered the issue in the negative. No reverter occurred before the Reverter of Sites Act 1987 came into force.
2. The relevant purpose had to be identified by construing the conveyance. The phrase referring to the ecclesiastical district qualified the persons to be educated, rather than merely the place where education was to occur. A qualifying person therefore had to live within the district.
3. The words “children and adults” permitted education of children, adults, or both. The omission from the conveyance of the model form’s words “or children only” did not alter that natural meaning. The absence of adult education was therefore not a breach of trust.
4. The school’s operation showed that it had adopted a policy of educating pupils who were not resident in the district and were not from the relevant social classes. That was a breach of trust. It did not, however, amount to cessation of use for the permitted purpose.
5. Where land is held for purpose A and is also used for purpose B, the trustees use it for two purposes. Use for B does not mean that use for A has ceased. The evidence showed that most pupils lived in the district and that most came from poorer classes, so the school continued to educate qualifying persons.
6. Becoming part of the state education system did not itself terminate the trust purpose. The Education Act 1944 recognised the continuing role of foundation managers in securing compliance with school trusts.
7. The court therefore concluded that St Philips continued to be used for its trust purpose until its closure in 1995. Reverter had not occurred before 17 August 1975.