Hunt & Anor v McLaren & Ors [2006] EWHC 2386 (Ch) (04 October 2006)

Hunt & Anor v McLaren & Ors [2006] EWHC 2386 (Ch) (04 October 2006)

The trust declared in 1948 over the Club's land and assets is valid as a contract-holding gift to the members of the Club for the time being, subject to their contractual rights and liabilities under the Club rules (Neville Estates category 2). The inclusion of Associate Members as members for these purposes does not invalidate the trust, but temporary members do not qualify as beneficiaries for the purposes of distribution on dissolution. The trust is not charitable, nor is it a non-charitable purpose trust failing for want of beneficiaries. On dissolution, surplus assets are to be distributed per capita among current full and Associate Members.

Citation
[2006] EWHC 2386 (Ch)
Parties
Claimant: Howard Frederick Hunt; Claimant: Victor Clyde Barfoot; First Defendant: Graham McLaren; Second Defendant: Laurence Geary; Third Defendant: Joanna Freeman; Fourth Defendant: Peter Morrison Nevill Jennings; Fifth Defendant: Anthony Stanley Brown; Sixth Defendant: Mark Anglim
Jurisdiction
England and Wales
Judgment Date
04 October 2006
Procedural Posture
Chancery Trusts/unincorporated Association / First Instance Judgment
Outcome
Declarations granted; trust upheld as valid contract-holding gift to members for the time being; guidance given on distribution of assets on dissolution.
Legal Topics
Unincorporated Associations, Purpose Trusts, Beneficiary Principle, Perpetuities, Club Property, Distribution on Dissolution
Trusts and Equity Property Law Unincorporated Associations Purpose Trusts Beneficiary Principle Perpetuities Club Property Distribution on Dissolution

Case Brief

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Parties

Howard Frederick Hunt

Claimant

Victor Clyde Barfoot

Claimant

Graham McLaren

First Defendant

Laurence Geary

Second Defendant

Joanna Freeman

Third Defendant

Peter Morrison Nevill Jennings

Fourth Defendant

Anthony Stanley Brown

Fifth Defendant

Mark Anglim

Sixth Defendant

Procedural Posture

Chancery Trusts/unincorporated Association / First Instance Judgment

Legal Issues

  1. 1 Whether the trust declared in 1948 over the Horley Town Football Club land and assets is valid under English law
  2. 2 Whether the trust is charitable, a valid non-charitable purpose trust, or fails for want of beneficiaries
  3. 3 Whether changes to the Club's rules and membership categories affect the validity of the trust and the entitlement to the Club's assets on dissolution

Ratio Decidendi

The trust declared in 1948 over the Club's land and assets is valid as a contract-holding gift to the members of the Club for the time being, subject to their contractual rights and liabilities under the Club rules (Neville Estates category 2). The inclusion of Associate Members as members for these purposes does not invalidate the trust, but temporary members do not qualify as beneficiaries for the purposes of distribution on dissolution. The trust is not charitable, nor is it a non-charitable purpose trust failing for want of beneficiaries. On dissolution, surplus assets are to be distributed per capita among current full and Associate Members.

Court Disposition

Declarations granted; trust upheld as valid contract-holding gift to members for the time being; guidance given on distribution of assets on dissolution.

Orders

  • Trust declared valid as contract-holding gift to members for the time being under Club rules.
  • Associate Members (but not temporary members) are entitled to share in surplus assets on dissolution.