Schumacher & Anor v Clarke & Ors [2020] EWHC 3381 (Ch) (25 November 2020)

Schumacher & Anor v Clarke & Ors [2020] EWHC 3381 (Ch) (25 November 2020)

The court declined to approve the trustees' proposed dispositions because the decision-making process was tainted by unresolved and unmanaged conflicts of interest between the trustees, mutual accusations of non-fiduciary conduct, and a lack of genuine collective engagement. The process did not meet the standards required for court approval under Public Trustee v Cooper Category 2, and the trustees did not require court approval to exercise their powers in any event.

Citation
[2020] EWHC 3381 (Ch)
Parties
Claimant: Patrik Schumacher; First Defendant: Brian Clarke; Second Defendant: Rana Hadid; Third Defendant: The Right Honourable Peter Garth Baron Palumbo; Fourth Defendant: Marie Noelle M Janssens; Fifth Defendant: Alberto Barba Guerrero; Sixth Defendant: Christian Gibbon; Seventh Defendant: The Zaha Hadid Foundation
Jurisdiction
England and Wales
Judgment Date
25 November 2020
Procedural Posture
Section 50 Administration of Justice Act 1985 Claim and Public Trustee V Cooper Application / Judgment on Category 2 Application for Court Approval of Trustees' Decisions
Outcome
Applications for court approval dismissed
Legal Topics
Trustee Powers and Duties, Court Approval of Trustee Decisions, Conflict of Interest, Removal of Trustees, Settlement of Estate Disputes
Trusts and Estates Probate Charity Law Trustee Powers and Duties Court Approval of Trustee Decisions Conflict of Interest Removal of Trustees Settlement of Estate Disputes

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Parties

Patrik Schumacher

Claimant

Brian Clarke

First Defendant

Rana Hadid

Second Defendant

The Right Honourable Peter Garth Baron Palumbo

Third Defendant

Marie Noelle M Janssens

Fourth Defendant

Alberto Barba Guerrero

Fifth Defendant

Christian Gibbon

Sixth Defendant

The Zaha Hadid Foundation

Seventh Defendant

Procedural Posture

Section 50 Administration of Justice Act 1985 Claim and Public Trustee V Cooper Application / Judgment on Category 2 Application for Court Approval of Trustees' Decisions

Legal Issues

  1. 1 Whether the court should approve the trustees' proposed dispositions under the will trust per Public Trustee v Cooper Category 2
  2. 2 Whether the trustees' decision-making process was tainted by unmanaged conflicts of interest
  3. 3 Whether the trustees' application for approval was procedurally and substantively appropriate

Ratio Decidendi

The court declined to approve the trustees' proposed dispositions because the decision-making process was tainted by unresolved and unmanaged conflicts of interest between the trustees, mutual accusations of non-fiduciary conduct, and a lack of genuine collective engagement. The process did not meet the standards required for court approval under Public Trustee v Cooper Category 2, and the trustees did not require court approval to exercise their powers in any event.

Court Disposition

Applications for court approval dismissed

Orders

  • Both applications for approval under Public Trustee v Cooper Category 2 are dismissed.
  • The court will hear counsel on costs and other consequential matters.