''Case of Sutton's Hospital'' (1612) 77 Eng Rep 960 is an old

common law Common law (also known as judicial precedent, judge-made law, or case law) is the body of law primarily developed through judicial decisions rather than statutes. Although common law may incorporate certain statutes, it is largely based on prece ...

case decided by Sir Edward Coke. It concerned The Charterhouse, London, which was held to be a properly constituted corporation.

Facts

Thomas Sutton 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 the educational institution (and, in the case of in-person learning, the Educational architecture, building) designed to provide learning environments for the teaching of students, usually under the direction of teachers. Most co ...

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 '' Hazell v Hammersmith and Fulham LBC'' 9922 AC 1, Lord Templeman 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 ' (; Latin plural ') 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 establishes".See Barron's Law Dictio ...

'' of the case thus: The case was also cited with approval (but distinguished) in another

House of Lords The House of Lords is the upper house of the Parliament of the United Kingdom. Like the lower house, the House of Commons of the United Kingdom, House of Commons, it meets in the Palace of Westminster in London, England. One of the oldest ext ...

case, '' Ashbury Railway Carriage and Iron Co Ltd v Riche'' (1875) LR 7 HL 653.

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

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