Appeals heard over Christ the King Sixth Form building

It currently stands empty, following the end of the original court case and the subsequent appeals.

In June 2020, the Isle of Wight Council announced it had successfully defended its legal case over the sixth form building on the college's site in Carisbrooke.

But, in July 2020, Christ the King wrote to parents to tell them the building could not be used when appeals were filed by both the school and the building's owners.

The Christ the King Sixth Form building.
Christ the King College announced it would appealing an aspect of the original ruling by Mr Justice Foxton.

The judge had ruled the school had signed a hire contract for the building in a way that was ultra vires, which meant it had no legal authority to enter into the contract.

It meant that, as a consequence, the contract was not considered to be legal.

The building was not owned by the school, however.

Mr Justice Foxton had called on the school and the contractor 'to seek to reach agreement' and the Isle of Wight Council warned there would be ongoing discussions.

In June 2020, the college's executive headteacher Matt Quinn said the judge's decision on the original case meant the school could move forward, after what he called a 'long journey'.

However, the appeals were quickly filed and the matter was eventually heard last month.

Now, both sides must await a reserved (written) decision.

How did they get here?

• In 2013, the Isle of Wight Council approved a request by college leaders to expand its age range and open a sixth form.
• The school's governing body then entered into a 15-year lease for a modular sixth form building. It was provided and assembled by specialist Built Offsite Limited (BOS).
• BOS sold the building to BOSHire Limited, which leased it to Christ the King College.
• Later, School Facility Management Limited (SFM) and GCP Asset Finance1 Limited (GCP) obtained the right to payments made by the college.
• The agreed deal cost more than £650,000 a year to service and, over the course of the contract, would have cost more than than £10 million in total.
• Payments were made but, in 2016, the Isle of Wight Council issued a financial notice of concern to the school.
• In September 2017, Christ the King College failed to pay its annual instalment.
• The matter went to court in May 2020.
• In June 2020, the Isle of Wight Council said it had successfully defended its case.
• In July 2020, two appeals were lodged against the ruling.
• In June 2021, the appeal was heard.

Appeal

On Tuesday June 22 and Wednesday June 23, 2021, an appeal was heard by three judges in London.

The Appeal Court heard the college should not have agreed to borrow money without the permission of the Secretary of State and that because it was neither sought, nor obtained, the contract was void.

However School Facility Management Limited (SFM) is arguing the contract was binding.

The Appeal Court was told that that SFM was paid £3.2m for the building but had invested £5.2 million.

It was told Christ the King college paid £3.2m, but had gained £1.7 million in the value of the building.

Ownership, use and even the location of the building - the court heard it was theoretically possible to move it - are among the disputed matters.

Arguements focussed on the idea of 'counter restitution' - which is about the recovery of assets, or benefits.

A judgement will be handed down in due course.

An Isle of Wight Council spokesperson said: “The Isle of Wight Council is not attached to this final court hearing and has no comment to make on the matter at this stage.”

The Isle of Wight County Press has asked for a statement from Christ the King College.