The Charity Commission for England and Wales v Framjee & Ors
2014
CHANCERY DIVISION
United Kingdom
CORAM
- THE HON MR JUSTICE HENDERSON
Areas of Law
- Charity Law
- Contract Law
- Trust Law
2014
CHANCERY DIVISION
United Kingdom
CORAM
AI Generated Summary
The Charity Commission brought a case to address the mismanagement of funds in the Dove Trust, revealing improper loans and delayed reports. As the interim manager found a financial shortfall, the High Court ruled on the existence of a trust and contract arising from the Dove Trust's donation system. The remaining funds in the Trust are to be distributed rateably among the intended recipients.
Judgment
MR JUSTICE HENDERSON :
Introduction
In this action, which I heard on 3 July 2014, the Charity Commission for England and Wales (“the Commission”) seeks declarations and directions in relation to a fund comprising donations paid by members of the public to an unincorporated charity called the Dove Trust. The claim is brought under section 78 of the Charities Act 2011 , following the appointment by the Commission on 6 June 2013 of the first defendant, Mr Pesh Framjee, as interim manager of the Dove Trust pursuant to sections 76(3)(g) and 78(1) of the Act. By virtue of section 78(3) , the functions of an interim manager are to be discharged by him under the Commission’s supervision, and subsection (5)(b) empowers the Commission to apply to the High Court “for directions in relation to any particular matter arising in connection with the discharge of those functions.” The High Court may then give such directions, or make such orders declaring the rights of any persons, as it thinks just: subsection (6).
The Dove Trust was established on 16 June 1983 by a declaration of trust (the “Trust Deed”) made between the settlor, the late Thomas Arthur Colman, and two individual trustees, one of whom was his son Keith Thomas Colman (“Mr Colman”). The trust was registered as a charity by the Commission on 12 July 1983. Mr Colman remained a trustee from its inception until his voluntary resignation on 3 December 2013. He is the fourth defendant, and is separately represented by solicitors and counsel.
The remaining three defendants are either former or present trustees of the Dove Trust. Each of them has filed an acknowledgment of service saying that he or she did not intend to contest the claim. Two of them (Mr Bryan Gunn, the second defendant, and Ms Donna Naghshineh, the third defendant) recently indicated that they would like to have an opportunity to address the court for a few minutes; but although I gave them this opportunity, neither of them in the event took advantage of it. The fifth defendant, Mr Peter Farley, filed a witness statement and expressed his willingness to help the court in any way he could, but made it clear that he did not wish to play any part in the hearing.
The representation of the parties at the hearing was as follows. Mr Tim Akkouh appeared for the Commission. Ms Charlotte Ford, instructed by Pinsent Masons LLP, appeared for the interim manager Mr Framjee. Ms Francesca Quint, instructed by Russell-Cooke LLP, appeared for Mr Col