(BBC) Cornerstone (North East) Adoption and Fostering Service launched a High Court challenge against Ofsted after inspectors deemed its policies discriminatory and lowered its rating.
The Sunderland-based agency was criticised for only welcoming married heterosexuals as foster carers.
Cornerstone said it would “prayerfully” consider the findings.
After an inspection in 2019, Ofsted downgraded Cornerstone from “good” to “requires improvement” because of the charity’s policy on recruiting carers.