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A decision made (02.05.06) to instruct the Law Draftsman to prepare the draft Jersey College for Girls (Sale of Former Premises) (Jersey) 200-

Subject:	DRAFT JERSEY COLLEGE FOR GIRLS (SALE OF FORMER SCHOOL PREMISES) (JERSEY) LAW 200-
Decision Reference:	MD-PH-2006-0036	Exempt clause(s):		N/A
Type of Report: (oral or written)	Written	Person Giving Report (if oral):
Telephone or e-mail Meeting?	N/A	Report File ref:		5/115/1
Written Report – Title	Former Jersey College for Girls – Removal of Covenant	Written report - author		P Tucker – Director of Property Services
Decision(s): To instruct the Law Draftsman to prepare the draft Jersey College for Girls (Sale of Former School Premises) (Jersey) Law 200- in preparation for it be lodged ‘au Greffe’ at the earliest opportunity.
Reason(s) for decision: To ask the Law Draftsman to prepare a law which will enable the removal of an existing covenant to allow the site to be used, and to be sold, free of any requirement to continue running it as a non-commercial secondary school for girls.
Action required: Director of Property Holdings to forward relevant documentation and instruct the Law Draftsman on behalf of the Minister to draft the proposed law for his consideration.
Signature: (Minister) Senator T A Le Sueur			Date of Decision:

Jersey College for Girls - Sale of Premises

TREASURY AND RESOURCES DEPARTMENT

PROPERTY HOLDINGS

REPORT TO MINISTER

Former Jersey College for Girls - Removal of Covenant

Purpose

To instruct the Law Draftsman to prepare a draft law which removes beyond all doubt any covenant which may still exist which would prevent the use and sale of the former Jersey College for Girls for anything other than a non-commercial secondary school for girls.

Background

It has been brought to the attention of Property Holdings that when The Schools Trust (Jersey) Ltd found it financially unviable to operate the former Jersey College for Girls premises in 1935, the States, following a Royal Court ruling, passed a law which enabled the Trust to sell the property to the Public, free of certain conventions and restrictions regarding the religious principles under which the college would be administered. It appears, however, that there still existed a covenant which required the establishment to be run as a non-commercial secondary school for girls and administered according to the Evangelical principles of the Anglican Church and without any objection to the admission of a pupil by reason of her religious belief.

Her Majesty’s Solicitor General has advised that the covenant which required that the building continue as a secondary school for young girls, and that it should not be commercially exploited, was not removed, despite previous advice given by the Law Officers’ Department.

There is doubt as to whether the Schools Trust (Jersey) Ltd case was correctly decided and if so, the covenants would no longer apply or be enforceable. The general principle is that where a vendor does not retain land in the area in favour of which the covenant can operate, the covenant is personal to the person who created it and ceases to exist when the covenantee ceases to exist.

In reality the college continues to operate in a new location and it is arguable that as the Jersey Schools Trust (Jersey) Ltd no longer exists the conditions are no longer enforceable.

For the sake of good order H M Solicitor General is of the opinion that a law passed by the States puts the matter beyond doubt. The proposed draft law and report which H M Solicitor General has prepared is attached, but it is necessary for the Minister to instruct the Law Draftsman’s Office to formally prepare the draft law which is to be presented to the States.

Recommendation

The Minister is asked to agree that the Law Draftsman be instructed to prepare the draft Jersey College for Girls (Sale of Former School Premises) (Jersey) Law 200- in order that it be lodged with the States at the earliest opportunity to allow the former JCG site to be used and/or to be sold, free of any condition which requires it to be operated as a non-commercial secondary school for girls.

Written By: Paul Tucker - Director of Property Services

Signature ………………………… 2 May 2006

DRAFT JERSEY COLLEGE FOR GIRLS ( SALE OF FORMER SCHOOL PREMISES) ( JERSEY ) LAW 200-

European Convention on Human Rights

The Minister for Treasury and Resources has made the following statement -

In the view of the Minister for Treasury and Resources the provisions of the Draft Jersey College for Girls (Sale of Former School Premises) (Jersey) Law 200- are compatible with the Convention Rights.

………………………….

Signed Senator T A Le Sueur

REPORT

1. The Jersey Ladies College, as the Jersey College for Girls was originally known, was built by a company called the Jersey Ladies’ College Limited. The company ran the college as a school for many years, but eventually went into liquidation. On the 15th September, 1928, the liquidators of the Jersey Ladies’ College Company Limited sold the college, together with all lands, buildings and appurtenances, the good will of the college, and the furniture and equipment to a company called The Schools Trust (Jersey) Limited. The contract of sale by the Jersey Ladies’ College Company Limited to The Schools Trust (Jersey) Limited set out four clauses to which the sale was subject. The first was that the establishment should continue to be a secondary school for young girls, should not be commercially exploited and should be administered according to the evangelical principles of the Anglican Church. The second was that the religious instruction given in the school should be in accordance with those principles and having regard to the religious convictions of the parents and the pupils, and that no objection was to be made to the admission of a pupil on account of her religious beliefs. The third condition required the acquiring company to honour all outstanding contracts of employment and the like, and the fourth related to the issue of debenture bonds; they are of no relevance.

2. The Schools Trust (Jersey) Limited ran the school for just under a decade, but eventually found itself in the position of not being able to continue to run the school without raising the fees of the pupils beyond the means of a large proportion of the parents. The company therefore agreed to sell the property to the Public, the purpose of the sale being that the States would take over the responsibility for the administration of the school.

3. Some doubts were entertained as to whether The Schools Trust (Jersey) Limited was entitled to sell the property to the Public free of the first and second covenants referred to above, and on the 29th June, 1935, the company made a representation to the Royal Court asking the Court declare that those clauses were only binding upon the company and that it was free to sell the property to the Public free of any such covenants or restrictions. The Court considered the matter, and on the 26th August, 1935, ruled that the obligation to give religious instruction contained in the clause in question was not restricted to the company but applied equally to successor or transferees, so that the liquidators could not lawfully sell, transfer or otherwise dispose of the property free from the restrictions regarding religious instruction.

4. In order to resolve the problem, the States passed the Loi (1936) autorisant la Vente des Immeubles appartenant à la Société Responsabilité Limité dit “Schools Trust (Jersey) Limited” aux Etats de cette Ile, which provided that immediately after the promulgation of the Law it should be lawful for the company to sell, transfer or otherwise dispose of the Jersey College for Girls in perpetuity free from the convention or restriction of the 15th September, 1928, regarding the religious principles under which the school would be administered.

5. The decision of the Royal Court in The Schools Trust (Jersey) Limited case has been the subject of some criticism, and some legal practitioners think that it was wrongly decided, inasmuch as the general principle relating to covenants affecting immovable property is that, save in the case where a fidéicommis (trust) has been validly created, a covenant affecting land can only be created in favour of (a) a person, in which case it comes to an end with the death of the person, or (b) in favour of other land.

6. In the case of the Jersey College for Girls, the vendor of the site to The Schools Trust (Jersey) Limited no longer existed at the date of the proposed sale by The Schools Trust (Jersey) Limited, and there was no retained land in the vicinity in favour of which the covenant could be said to operate. Be that as it may, the Royal Court decided as it did and until that decision is overturned by a Court of competent jurisdiction it should be regarded as the Law.

7. Although the position is arguable, it is better to put it beyond doubt by a law than to leave it for argument. The States are therefore asked to pass a law which will have the effect of enabling the site to be used, and to be sold, free of any requirement to run it as a non-commercial secondary school for girls.

There are no financial or manpower implications.

Explanatory Note

This Law provides the ability for the former Jersey College for Girls’ premises at Rouge Bouillon, St Helier, to be used and to be sold for the purposes of redevelopment free of any requirement which may exist to operate it as a non-commercial secondary school for girls.

LAW

JERSEY COLLEGE FOR GIRLS ( SALE OF FORMER SCHOOL PREMISES)

( JERSEY ) LAW 200-

A LAW to abrogate certain covenants relating to the site of the former

Jersey College for Girls


Adopted by the States	[date to be inserted]

Sanctioned by Order of Her Majesty in Council	[date to be inserted]

Registered by the Royal Court	[date to be inserted]

Whereas the former site of the Jersey College for Girls, Rouge Bouillon, St. Helier, was acquired by the Public of the Island by two separate purchases, the first of which, consisting of the original Jersey Ladies’ College building, dependent building and lands, was made from The Schools Trust (Jersey) Limited on the 1st February, 1936;

And whereas The Schools Trust (Jersey) Limited had acquired the original Jersey Ladies’ College building from the liquidators of the Jersey Ladies’ College Company Limited by contract dated the 15th September 1928;

And whereas the contract of the 15th September, 1928, contained a number of covenants or restrictions, including firstly, that the establishment should continue to be a secondary school for young girls, should not be run commercially and be administered according to the Evangelical principles of the Anglican Church, and secondly that religious instruction be given therein according to those principles and having regard to the religious convictions of the parents and the pupils, and that no objections should be made to the admission of a pupil by reason of her religious beliefs;

And whereas on the 29th September, 1935, the States passed the Loi (1936) autorisant la Vente des Immeubles appartenant à la Société Responsabilité Limité dit “Schools Trust (Jersey) Limited” aux Etats de cette Ile, which made it lawful for The Schools Trust (Jersey) Limited to sell, transfer or otherwise dispose of in perpetuity to the States of the Island of Jersey for and on behalf of the Public of the Island the Jersey College for Girls free from the convention or restriction stipulated in the contract of the 15th September, 1928, regarding the religious principles under which the college would be administered;

And whereas The Schools Trust (Jersey) Limited sold the property to the Public by contract dated the 1st February, 1936, which contract placed the Public under an obligation to observe all the clauses, conditions and restrictions to which The Schools Trust (Jersey) Limited was subjected, with the exception of the clauses and conditions relating to the religious principles subject to which the College was to be administered, in accordance with the terms of the Law which the States had passed;

And whereas the Jersey College for Girls has been transferred from the premises in Rouge Bouillon to new premises;

And whereas it is desired to utilise the site for other purposes and/or to sell the site for use for other purposes;

THE STATES have resolved, subject to the Sanction of Her Most Excellent Majesty in Council to adopt the following Law –

ARTICLE 1

Notwithstanding anything to the contrary contained in any contract passed before the Royal Court, it shall be lawful for the Public of the Island to use the site of the former Jersey College for Girls for purposes, including for commercial purposes, other than the conduct of a school, and to sell the site free of any obligation to use it as a school and free of any restriction prohibiting its use for commercial purposes.

ARTICLE 2

(1) The Royal Court shall, when it orders the registration of this Law, also order the registration of a copy of this Law signed by the Greffier of the States in the Public Registry of Contracts.

(2) The registration of a copy of this Law in the Public Registry of Contracts shall have like effect as a contract passed before the Royal Court.

(3) No fees shall be payable under the Departments of Judiciary and the Legislature (Jersey) Law 1965, as amended, in relation to a copy of this Law as required by paragraph (1) of this Article.