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This week's landmark court ruling over former Durand Academy land should, unless Durand Education Trust appeals, mark the end of a six-year saga that has demonstrated some of the major pitfalls of the academies system. A (hopefully short) thread https://schoolsweek.co.uk/court-of-appeal-throws-out-durands-compensation-claim-for-leisure-centre-land/
The Court of Appeal judgment neatly lays out the whole history of the school in a way that hasn't really been done before (the NAO did a pretty good job in 2014, but this updates things somewhat).
A school has existed on the site in Hackford Road, Stockwell, since the 1880s.
A school has existed on the site in Hackford Road, Stockwell, since the 1880s.
The school known as Durand Primary School was run by the Inner-London Education Authority in the 80s, but transferred to Lambeth council in 1990 following the ILEA's abolition.
That same year, the school's governors received a £100k grant to construct a sports pitch and pool
That same year, the school's governors received a £100k grant to construct a sports pitch and pool
In 1995, Durand became a grant-maintained school. It was at this point that the site in Hackford Rd was transferred to the governors.
The same year, upper floors of the main building were converted into accommodation.
These were private flats in a school building
The same year, upper floors of the main building were converted into accommodation.
These were private flats in a school building
The judgment states that by '97, the governors were renting out the flats, sports pitch and swimming pool.
A private company was formed that year: London Horizons. The idea was for the company to trade from the commercial facilities and donate taxable profits to the school
A private company was formed that year: London Horizons. The idea was for the company to trade from the commercial facilities and donate taxable profits to the school
Grant maintained schools were abolished in 1999, so Durand became a foundation school. It continued to be maintained by Lambeth and the site remained in the ownership of the governors.
In 2001, another residential block was built on the Hackford Road site
In 2001, another residential block was built on the Hackford Road site
(I should clarify at this stage that the accommodation in the top floors of the main school building appeared to have been initially converted as a "teachers' accommodation block" - but were being rented out by 1997)
In 2001, London Horizons awarded a 10-year contract for management of commercial facilities on the school site to a company owned by the then headteacher Sir Greg Martin. A similar contract was awarded to another company owned by Martin and his family in 2012
In May 2010, Durand became a foundation school "with a foundation" (it had been one without a foundation beforehand) with the formation of the Durand Education Trust.
At that point the school's land was transferred to DET, the foundation for the school. No money was paid for it
At that point the school's land was transferred to DET, the foundation for the school. No money was paid for it
In Sept 2010, Durand became an academy, and DET retained ownership of the land.
At that point the governors were dissolved, though "most" of the individuals were by then trustees of Durand Academy Trust
At that point the governors were dissolved, though "most" of the individuals were by then trustees of Durand Academy Trust
A few years later, the Durand story was thrust into the national spotlight by an NAO report that revealed the complex web of companies (and money flow between them) linked to the school
It's worth a read if you have an hour or so https://www.nao.org.uk/report/investigation-into-the-education-funding-agencys-oversight-of-related-party-transactions-at-durand-academy/
It's worth a read if you have an hour or so https://www.nao.org.uk/report/investigation-into-the-education-funding-agencys-oversight-of-related-party-transactions-at-durand-academy/
Then, the head appeared in front of @CommonsPAC, which is when it really got interesting.
Of particular interest were Martin's earnings of over £400k, a large chunk of which came from "management fees" for the commercial facilities https://schoolsweek.co.uk/durand-head-greg-martin-grilled-over-dating-agency-and-other-companies/
Of particular interest were Martin's earnings of over £400k, a large chunk of which came from "management fees" for the commercial facilities https://schoolsweek.co.uk/durand-head-greg-martin-grilled-over-dating-agency-and-other-companies/
Things then moved quickly. The DfE's oversight was in question, and ministers needed to act.
A Charity Commission investigation was launched and Durand Academy Trust, the education side of the operation, was issued a financial notice to improve https://schoolsweek.co.uk/durand-academy-trust-issued-with-financial-notice-to-improve/
A Charity Commission investigation was launched and Durand Academy Trust, the education side of the operation, was issued a financial notice to improve https://schoolsweek.co.uk/durand-academy-trust-issued-with-financial-notice-to-improve/
Martin announced his "retirement" later that year, but he became the school's chair of governors (or trustees)
At this point I'll introduce the school's state boarding school in Sussex. It was supposed to use money from the commercial facilities to fund free provision for year 8 pupils.
It never really got off the ground - it was in £476k deficit within a year https://schoolsweek.co.uk/durand-academys-much-hyped-free-boarding-school-is-in-476000-deficit-after-just-one-year/
It never really got off the ground - it was in £476k deficit within a year https://schoolsweek.co.uk/durand-academys-much-hyped-free-boarding-school-is-in-476000-deficit-after-just-one-year/
In July 2016, the government issued Durand Academy Trust with a "notice of provisional intention" to terminate its funding agreement.
Ministers had had enough. Durand had to address "serious concerns" about its use of public money, or close https://schoolsweek.co.uk/durand-academy-faces-termination-as-government-issues-final-warning/
Ministers had had enough. Durand had to address "serious concerns" about its use of public money, or close https://schoolsweek.co.uk/durand-academy-faces-termination-as-government-issues-final-warning/
The list of demands from the then Education Funding Agency included the school severing ties with Martin, still its chair of governors.
At the time, interim executive head Mark McLaughlin said the trust would fight the demands "vigorously" https://schoolsweek.co.uk/durand-academy-trust-refuses-to-cut-ties-with-controversial-former-executive-head/
At the time, interim executive head Mark McLaughlin said the trust would fight the demands "vigorously" https://schoolsweek.co.uk/durand-academy-trust-refuses-to-cut-ties-with-controversial-former-executive-head/
In October 2016, the DfE confirmed it would proceed with the termination of Durand's funding agreement.
When this happens to academies, they are transferred to new sponsors https://schoolsweek.co.uk/durand-academy-trust-funding-to-be-terminated/
When this happens to academies, they are transferred to new sponsors https://schoolsweek.co.uk/durand-academy-trust-funding-to-be-terminated/
Later that month, the Charity Commission finally published its investigation into Durand, instigated the previous year.
It found the contract between the firm owned by Martin and the leisure facilities on the school site was "too generous" https://schoolsweek.co.uk/charity-commission-finally-publishes-durand-investigation-greg-martin/
It found the contract between the firm owned by Martin and the leisure facilities on the school site was "too generous" https://schoolsweek.co.uk/charity-commission-finally-publishes-durand-investigation-greg-martin/
An interesting nugget of info that came to light was that Durand paid more than £240,000 to PR and lobbying firm PLMR.
Kevin Craig, PLMR's founder, was a trustee of Durand Academy Trust from 2010 to Feb 2016 https://schoolsweek.co.uk/councils-run-crisis-communications-classes-for-schools-as-trusts-up-their-pr-focus/
Kevin Craig, PLMR's founder, was a trustee of Durand Academy Trust from 2010 to Feb 2016 https://schoolsweek.co.uk/councils-run-crisis-communications-classes-for-schools-as-trusts-up-their-pr-focus/
At this point, Ofsted got involved...
...by publishing an "unapproved" report placing Durand into special measures https://schoolsweek.co.uk/ofsted-publishes-unapproved-report-placing-durand-in-special-measures/
...by publishing an "unapproved" report placing Durand into special measures https://schoolsweek.co.uk/ofsted-publishes-unapproved-report-placing-durand-in-special-measures/
Durand challenged the Ofsted report in the High Court, and won http://schoolsweek.co.uk/judge-durand-management-may-have-taken-eye-off-the-ball-over-efa-squabble/
But Ofsted launched a last-minute appeal against the High Court ruling https://schoolsweek.co.uk/ofsted-lodges-last-minute-appeal-against-high-courts-durand-academy-ruling/
The Court of Appeal ruled in Ofsted's favour.
In August 2017, Martin resigned as a trustee.
The Harris Foundation was initially approached to take on Durand, but the trust backed out over concerns about legal agreements and the state of the site
In August 2017, Martin resigned as a trustee.
The Harris Foundation was initially approached to take on Durand, but the trust backed out over concerns about legal agreements and the state of the site
Eventually, the Dunraven Educational Trust agreed to take on the school.
The school reopened as Van Gogh primary school in September 2018.
At that point, the land and buildings operated by the school (and not the commercial facilities) were transferred https://schoolsweek.co.uk/troubled-durand-academy-reopens-as-van-gogh-primary-but-land-issues-continue/
The school reopened as Van Gogh primary school in September 2018.
At that point, the land and buildings operated by the school (and not the commercial facilities) were transferred https://schoolsweek.co.uk/troubled-durand-academy-reopens-as-van-gogh-primary-but-land-issues-continue/
It emerged that year that most of the money made by commercial facilities on the site was being paid to former head Greg Martin.
He was entitled to a "special payment" of £850k under an agreement with the Charity Commission https://schoolsweek.co.uk/durand-academy-leisure-centre-profits-still-going-to-ex-head-under-special-payment-deal/
He was entitled to a "special payment" of £850k under an agreement with the Charity Commission https://schoolsweek.co.uk/durand-academy-leisure-centre-profits-still-going-to-ex-head-under-special-payment-deal/
We found out in 2019 that Durand had written off £1.6 million from its failed state boarding school project https://schoolsweek.co.uk/durand-academy-wrote-off-1-6-million-from-failed-boarding-school-project/
And later that year, we discovered that a legal battle was still raging behind the scenes over the rest of the land, occupied by the leisure and accommodation facilities https://schoolsweek.co.uk/durand-education-trust-in-legal-battle-with-dfe-after-refusing-to-hand-over-assets-for-free/
And now I'll switch from our news archive to the Court of Appeal judgment, which has lots of interesting bits of information in it
https://schoolsweek.co.uk/wp-content/uploads/2020/12/20201208-C1-2020-0139-R-Durand-Educational-Trust-v-SofS-for-Education-Approved-Judgment.pdf
https://schoolsweek.co.uk/wp-content/uploads/2020/12/20201208-C1-2020-0139-R-Durand-Educational-Trust-v-SofS-for-Education-Approved-Judgment.pdf
For example, DET changed its objectives to say it existed to benefit young people "within the London Borough of Lambeth", rather than the school specifically.
It made that change on 30/04/2019. The DfE's direction for it to give up the remaining land came on 22/05/2019
It made that change on 30/04/2019. The DfE's direction for it to give up the remaining land came on 22/05/2019
Between August 2019 and January 2020, DET launched two claims for judicial review of the decision to direct the transfer of the land without compensation.
Both were unsuccessful.
But in February, DET was granted permission to appeal to the Court of Appeal
Both were unsuccessful.
But in February, DET was granted permission to appeal to the Court of Appeal
DET, which if you remember is the school's sister charity, formed in 2010 when it became an academy, claimed the that the decision not to award compensation was disproportionate, and that there was no “fair procedure” in place
It also argued the decision violated its right to peaceful enjoyment of property and its right not to be discriminated against
During the court hearing, DET's lawyers claimed that compensation was due because of the investment it had made in the facilities.
But the last big investment on the site was in 2004, six years before DET came into being
But the last big investment on the site was in 2004, six years before DET came into being
The court rejected the argument about investment, finding there was “no reason to believe that any conduct or expenditure on DET’s part enhanced the value of the leisure centre land”
“The simple fact is that no works were carried out on the leisure centre land when DET was its owner. The leisure centre was constructed in 2004, the accommodation block dated from 2001 and the upper floors of the school building had been converted in about 1995."
In the judgment, Lord Justice Newey said that it “might be said” the non-financial efforts of Martin or his companies had “contributed to the development of the leisure centre”, but that they had been “well-remunerated for them” https://schoolsweek.co.uk/court-of-appeal-throws-out-durands-compensation-claim-for-leisure-centre-land/
The ruling states that private company London Horizons "appears to have paid the companies upwards of £3.5 million between 2002 and 2018 aside from Sir Greg Martin’s salary and pension contributions as head teacher”
£3.5 million https://schoolsweek.co.uk/court-of-appeal-throws-out-durands-compensation-claim-for-leisure-centre-land/
£3.5 million https://schoolsweek.co.uk/court-of-appeal-throws-out-durands-compensation-claim-for-leisure-centre-land/
The judgment also states that the “evidence indicates that, while LHL achieved profits of some £8.3 million between 2010 and August 2018, less than £1 million of this sum accrued to the benefit of Durand Academy" and no money went to the school after 2015 https://schoolsweek.co.uk/court-of-appeal-throws-out-durands-compensation-claim-for-leisure-centre-land/
So the money flowing from the leisure facilities to the school, the main reason for DET's existence and the complex governance structure, dried up in 2015. Pupils weren't benefiting any more https://schoolsweek.co.uk/court-of-appeal-throws-out-durands-compensation-claim-for-leisure-centre-land/
In fact, if pupils at Van Gogh wanted to use the leisure facilities, the school had to pay.
It had to pay. To use leisure facilities on its own site
It had to pay. To use leisure facilities on its own site
I was lucky to visit Van Gogh earlier this year before the pandemic unfolded.
It seems like a genuinely lovely school, and all credit to the new team that's taken over.
But as I wrote here, they've had to do a lot to move the school on from the scandal https://schoolsweek.co.uk/after-durand-the-school-stepping-out-of-the-shadown-of-scandal/
It seems like a genuinely lovely school, and all credit to the new team that's taken over.
But as I wrote here, they've had to do a lot to move the school on from the scandal https://schoolsweek.co.uk/after-durand-the-school-stepping-out-of-the-shadown-of-scandal/
Now some of you who had a space 3 hours to read this thread may ask: what's it got to do with academies if these facilities and structures existed before the school converted in 2010
WELL I'M GLAD YOU ASKED
WELL I'M GLAD YOU ASKED
I watched the two day hearing last month, and one of the major arguments relied-upon by Durand was that there isn't any proper procedure re: compensation when academy land is transferred https://schoolsweek.co.uk/settling-durand-dispute-could-hit-services-for-vulnerable-children/
This argument did not eventually prevail, but it gets to the nub of the issue: in its haste to rapidly convert schools into academies, which involves land transferring to academy trusts, the DfE appears not to have considered the full legal ramifications of its actions
This issue is explored in this piece from 2016 by my colleague @JohndickensSW (yes, we're both still here).
The fact is that several years into the academisation programme, the DfE still had no idea how many academy sites it owned.
Let that sink in. https://schoolsweek.co.uk/dfe-needs-to-spend-20m-to-resolve-academy-land-confusion/
The fact is that several years into the academisation programme, the DfE still had no idea how many academy sites it owned.
Let that sink in. https://schoolsweek.co.uk/dfe-needs-to-spend-20m-to-resolve-academy-land-confusion/
But at the end of the day, all of these stories come down to pupils.
Whichever side of the academies debate you fall on, these were real children, in a deprived area, whose education has been at the centre of major upheaval for many years.
I hope they can move on soon
Whichever side of the academies debate you fall on, these were real children, in a deprived area, whose education has been at the centre of major upheaval for many years.
I hope they can move on soon
Anyway, that thread has been far longer than I expected it to be, but that just goes to show how complex this case is.
In seven years of education journalism, I don't think I've every written so much about one school
In seven years of education journalism, I don't think I've every written so much about one school
I'll leave you with the comments of David Boyle, CEO of the trust that now runs the school.
"It will be great to be able to focus on the children of Van Gogh without any additional noise related to this issue"
"It will be great to be able to focus on the children of Van Gogh without any additional noise related to this issue"
"And it would be excellent if those children felt some benefit again of a provision that was set up for their benefit in the first place - it's been a while since that's been the case"
Anyway, if anyone wants 10,000 words on this or even a book I'm down as long as you pay me to sleep before and after writing it
