Case of Sutton's Hospital
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''Case of Sutton's Hospital'' (1612) 77 Eng Rep 960 is an old
common law In law, common law (also known as judicial precedent, judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions."The common law is not a brooding omnipres ...
case decided by
Sir Edward Coke ''Sir'' is a formal honorific address in English for men, derived from Sire in the High Middle Ages. Both are derived from the old French "Sieur" (Lord), brought to England by the French-speaking Normans, and which now exist in French only as ...
. It concerned The Charterhouse, London which was held to be a properly constituted corporation.


Facts

Thomas Sutton Thomas Sutton (1532 – 12 December 1611) was an English civil servant and businessman, born in Knaith, Lincolnshire. He is remembered as the founder of the London Charterhouse and of Charterhouse School. Life Sutton was the son of an official ...
was a coal mine owner and moneylender, as well as the Master of Ordnance for the North of England, a military position. He founded a
school A school is an educational institution designed to provide learning spaces and learning environments for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is sometimes comp ...
and hospital as a corporation at the London Charterhouse. When he died, he left a large part of his estate to the charity. Sutton's other heirs challenged the bequest by arguing that the charity was improperly constituted. Therefore, they argued, it lacked a legal personality to be the subject of a transfer of property.


Judgment

In a full hearing of the King's Bench it was held that the incorporation was valid, as was the subsequent foundation of the charity and so the transfer of property to it, including the nomination of a master of the charity to receive the donation, was not void. Sir Edward Coke wrote in the report the following.


Citations

The case has been cited in a number of subsequent decisions. Notably, in ''
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referred to it, and although he acknowledged it to be good law, he also noted that to modern eyes the language was so impenetrable that most lawyers simply took it on faith that the case stood for the principle for which it is cited. He summarised the ''
ratio decidendi ''Ratio decidendi'' ( Latin plural ''rationes decidendi'') is a Latin phrase meaning "the reason" or "the rationale for the decision". The ''ratio decidendi'' is "the point in a case that determines the judgement" or "the principle that the case ...
'' of the case thus: The case was also cited with approval (but distinguished) in another
House of Lords The House of Lords, also known as the House of Peers, is the upper house of the Parliament of the United Kingdom. Membership is by appointment, heredity or official function. Like the House of Commons, it meets in the Palace of Westminste ...
case, ''
Ashbury Railway Carriage and Iron Co Ltd v Riche ''Ashbury Railway Carriage and Iron Co Ltd v Riche'' (1875) LR 7 HL 653 is a UK company law case, which concerned the objects clause of a company's memorandum of association. Its importance as case law has been diminished as a result of the C ...
'' (1875) LR 7 HL 653.


See also

*
UK company law The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary lega ...
*''
Salomon v A Salomon & Co Ltd is a landmark UK company law case. The effect of the House of Lords' unanimous ruling was to uphold firmly the doctrine of corporate personality, as set out in the Companies Act 1862, so that creditors of an insolvent company could not sue th ...
''
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AC 22 *''
Lennard's Carrying Co Ltd v Asiatic Petroleum Co Ltd ''Lennard's Carrying Co Ltd v Asiatic Petroleum Co Ltd'' 915AC 705 is a famous decision by the House of Lords on the ability to impose liability upon a corporation. The decision expands upon the earlier decision in '' Salomon v Salomon & Co.'' 8 ...
'' 915AC 705 *
United States corporate law United States corporate law regulates the governance, finance and power of corporations in US law. Every state and territory has its own basic corporate code, while federal law creates minimum standards for trade in company shares and governanc ...
*''
Trustees of Dartmouth College v. Woodward ''Trustees of Dartmouth College v. Woodward'', 17 U.S. (4 Wheat.) 518 (1819), was a landmark decision in United States corporate law from the United States Supreme Court dealing with the application of the Contracts Clause of the United States Co ...
'', 17 US 518 (1819) *'' Paul v. Virginia'', 75 US 168 (1869), a corporation was not a citizen within the meaning of the
Privileges and Immunities Clause The Privileges and Immunities Clause ( U.S. Constitution, Article IV, Section 2, Clause 1, also known as the Comity Clause) prevents a state from treating citizens of other states in a discriminatory manner. Additionally, a right of interstate ...
*'' Santa Clara County v. Southern Pacific Railroad Company'', 118 US 394 (1886) in a property tax case, the US Supreme Court holds that corporations are obviously "persons" with the meaning of the Fourteenth Amendment *'' Citizens United v. Federal Election Commission'', 130 S.Ct. 876 (2010) corporations are persons under the
First Amendment First or 1st is the ordinal form of the number one (#1). First or 1st may also refer to: *World record, specifically the first instance of a particular achievement Arts and media Music * 1$T, American rapper, singer-songwriter, DJ, and reco ...
and hence have the unlimited right to produce campaigning material at election times


Notes


References

*{{cite journal , first=D. , last=Wishart , title=A reconfiguration of company law and/or corporate law theory , year=2010 , volume=10 , issue=1 , journal=Journal of Corporate Law Studies , pages=151–178


External links


"The Case of Sutton’s Hospital."
from Sir Edward Coke, ''Selected Writings of Sir Edward Coke'', vol. I, at the Online Library of Liberty 1612 in English law United Kingdom company case law 1612 in England Edward Coke cases United Kingdom corporate personality case law History of corporate law Court of Exchequer Chamber cases