Judgment call: 27 February 2012

In determining whether payments made by a settlor into a settlor-interested trust were capable of being assessed for income tax, the first-tier tribunal was constrained by the words of the Income and Corporation Taxes Act 1988 s.660A(1) despite the fact that it appeared to lead to an absurd conclusion, namely that a settlor could be subject to tax on a payment that he himself had made.


(1) Rogge; (2) John Martin Kent; (3) JM Kent Settlement v Revenue and Customs Commissioners. (2012) UKFTT 49 (TC). First-tier tribunal (tax chamber). Jo Neill; Judge John Brooks.

12 January 2012

Appeals dismissed

Edward Sawyer
Edward Sawyer

For the appellants

Terrance Morris FCA, tax consultant, Lansburys International instructed directly

For the respondent

3 Stone Buildings’ Matthew Slater instructed directly by the general counsel and Solicitor to HM Revenue & Customs

Civil procedure

IBM United Kingdom Pensions Trust Ltd v (1) Metcalfe; (2) IBM United Kingdom Holdings; (3) IBM United Kingdom (2012) EWHC 125 (Ch). Chancery Division. Warren J. 1 February 2012

In proceedings concerning a pension scheme brought by its trustee, the court had jurisdiction under the Senior Courts Act 1981 s.51 to make a protective costs order in favour of one of the scheme’s members to enable him to monitor proceedings, share information with other scheme members and supplement the trustee’s case. The jurisdiction to make the order was not dependent on his appointment as a representative under the Civil Procedure Rules’ r.19.7(2). Application refused

For the claimant

Wilberforce Chambers’ Edward Sawyer instructed by Nabarro partner Neal Gibson

For (1) Metcalfe

Wilberforce Chambers’ Michael Tennet QC and Outer Temple Chambers’ Nicolas Stallworthy QC; DLA Piper partner David Young

For (2) IBM United Kingdom Holdings and (3) IBM United Kingdom

5 Stone Buildings’ Andrew Simmonds QC and Joseph Goldsmith; Dickinson Dees director Joanna Bromhead


Polestar Maritime Ltd v YHM Shipping Co Ltd. Unreported. Court of Appeal (Civil Division). Sir Anthony May (President QBD); Aikens LJ; Lloyd LJ.

17 February 2012 

An agreement for the sale of a vessel on an amended Norwegian Saleform 1993 was an ‘as was’ agreement and on the correct interpretation of clause 11 only required the seller to deliver at closing the national and international trading certificates that the vessel had at the time of inspection. On the correct interpretation of clause 14, the seller had three banking days after notice of readiness in which to make arrangements so that the vessel would comply with the covenant in the bill of sale that it was free from detentions.Appeal dismissed

For the appellant (defendant)

20 Essex Street’s Michael Coburn QC; MFB Solicitors assistant Dominic McAleer

For the respondent (claimant)

20 Essex Street’s Julian Kenny;

Ince & Co partner Paul Herring


Caterpillar Logistics Services (UK) Ltd v Huesca de Crean (2012) EWCA Civ 156. Court of Appeal (Civil Division). Maurice Kay LJ; Lewison LJ; Stanley Burnton LJ.

21 February 2012

The jurisdiction recognised in the decision in Bolkiah v KPMG (1999) 2 AC 222, (1999) CLY 1 to grant ‘barring-out’ relief did not extend to the relationship between an employer and a former employee. If barring-out relief could ever be granted to an employer against a former employee it could only be in the most exceptional circumstances.

Appeal dismissed

For the appellant

Littleton Chambers’ Selwyn Bloch QC and Gavin Mansfield; Walker Morris partner Malcolm Simpson

For the respondent

St Philips Chambers’ Edward Pepperall; Keelys’ partner Michael Phillips

Administrative law

BBC v Sugar (Deceased, represented by Fiona Paveley) (2012) UKSC 4. Supreme Court. Lord Phillips (President); Lord Walker JSC; Lord Wilson JSC; Lord Mance JSC; Lord Brown JSC.

15 February 2012

The Supreme Court upheld the Court of Appeal’s decision that, for the purposes of the Freedom of Information Act 2000 Sch.1, information that was held for a genuine journalistic purpose was effectively exempt from production under the act even if it had been held for other purposes.

Appeal dismissed

For the appellant

Essex Court Chambers’ Tim Eicke QC and David Craig; Forsters partner Libby Attwood

For the respondent

Blackstone Chambers’ Monica Carss-Frisk QC and Kate Gallafent directly instructed by BBC general counsel Sarah Jones


Singh v Bristol Sikh Temple Management Committee. Unreported. Employment

Appeal Tribunal. Beatson J; MV McAr­thur; B Beynon.

14 February 2012


An employment tribunal had erred in its approach to the question of whether a priest at a Sikh temple had been a worker within the meaning of the National Minimum Wage Act 1998 s.54(3)(b).

Appeal allowed

For the appellant

Old Square Chambers’ Michael Ford; Thompsons’ solicitor Bruce Robin

For the respondent

Guildhall Chambers’ Debbie Grennan; Lyons Davidson solicitor Angharad Booker

Local government

R (on the application of the National Secular Society) v Bideford Town Council (2012) EWHC 175 (Admin). Queen’s Bench Division (Administrative Court). Ouseley J. 10 February 2012

A parish council’s practice of saying prayers as part of the formal business of full meetings of the council was unlawful, there being no statutory power permitting it.

Application granted

For the claimant

Matrix Chambers’ David Wolfe and Claire Darwin; DAC Beachcroft partner Stephen Hocking

For the defendant

3 Hare Court’s James Dingemans QC and Tom Poole; Aughton Ainsworth solicitor Tom Ellis