Dundee Hospitals Board v Walker [1952] 1 All ER 896

Facts

• The case concerned a gift made to the Dundee Royal Infirmary, intended for the treatment of "persons living in the area served by the Infirmary."
• The central question was whether the group described—residents within the Infirmary's service area—qualified as beneficiaries for the purposes of a charitable trust.
• There had previously been disagreement regarding the degree of public benefit necessary for a trust to be considered charitable under Scots law.

Issues

1. Whether a trust benefitting individuals restricted by geographic area could fulfil the "public benefit" requirement for a charitable trust.
2. Whether the specified group of residents constituted an adequate class of beneficiaries under charity law.
3. How to distinguish private trusts from charitable trusts, particularly where beneficiary groups are limited in scope.

Decision

• The House of Lords held that the connection between the trust’s purpose (providing medical care) and the defined group (residents in the Infirmary’s service area) was sufficient to satisfy the public benefit requirement.
• The court determined that a charitable trust need not benefit the public at large; a specific, defined group directly linked to the trust’s charitable purpose may fulfil the public benefit condition.
• The presence of location-based limits did not negate the charitable nature of the trust so long as the group served had a direct relation to the institution’s public aim.

Legal Principles

• The "area of benefit" principle allows charitable trusts to restrict beneficiaries to a specific locality if the group is clearly defined and connected to the trust’s charitable objective.
• The key to satisfying the public benefit test is the connection between the trust’s aims and the beneficiary class.
• Trusts with defined public aims, even if directed at limited geographic groups, can qualify as charitable rather than private.
• The public benefit requirement does not demand universal application; defined, non-arbitrary beneficiary groups may suffice if tied to the public purpose.
• The approach taken distinguishes this case from others, such as Oppenheim v Tobacco Securities Trust Co Ltd [1951] AC 297, by allowing location-limited charitable trusts where linked to institutional roles.

Conclusion

Dundee Hospitals Board v Walker remains a significant authority in Scots charity law, confirming that trusts serving defined geographic groups closely tied to a charitable objective can meet the public benefit requirement, thereby differentiating charitable from private trusts and providing ongoing guidance for the creation and administration of charitable trusts.