RSPCA v Sharp - Court Of Appeal judgment - Charity's Right To Protect Interests Under Will

The Court of Appeal (Ld Neuberger MR, Patten LJ, Black LJ) has decided in favour of the charity in the RSPCA's appeal in the case of RSPCA v Sharp [2010] EWCA Civ 1474.

The case had caused some concern within the charity sector because of comments made in the first instance judgment which suggested that the charity had been wrong in principle to challenge the interpretation of the Will, and should, in effect, have accepted what it received "whatever the view as to the will" ([2010] EWHC 268 (Ch) at para 26).

The Court of Appeal has made it clear that this approach was wrong, charities being in no greater or lesser position than any other beneficiary under a Will, with the same right to challenge and to expect a correct interpretation and distribution from an estate.

The dispute

The issue in dispute was relatively simple - there were two ways in which a Will could be interpreted. The executors interpreted it in such a way as to increase the amount received by themselves and the testator's brother, decreasing the amount in residue for the charity and causing inheritance tax to be payable on the estate. The charity challenged this interpretation, contending that the Will should be read as a whole, meaning that the pecuniary legacy to the executors and the brother was reduced by a gift...