Attorney General v Zedra Fiduciary Services (UK) Ltd & Ors

Attorney General v Zedra Fiduciary Services (UK) Ltd & Ors

The Deed created a valid charitable trust with the principal purpose of benefitting the nation by accumulating a fund to be applied in discharge of the National Debt, and a subsidiary purpose to reduce the National Debt in case of national exigencies. The trust was an immediate and unconditional gift to charity, not subject to a condition precedent. The original purposes of the trust cannot now be carried out, constituting a case of subsequent failure, and the court has jurisdiction to make a cy-près scheme. The question of the appropriate scheme is deferred for further hearing.

Parties
Claimant: H. M. Attorney General; First Defendant: Zedra Fiduciary Services (UK) Limited; Second Defendant: Diana Iona Bruce; Third Defendant: John Damian Nicholas Stidworthy
Jurisdiction
England and Wales
Judgment Date
09 November 2020
Procedural Posture
Charity/trusts / Judgment on Validity of Trust and Directions for Further Hearing on Scheme
Outcome
The trust is valid; court has cy-près jurisdiction; issue of scheme deferred.
Legal Topics
Validity of Charitable Trusts, Cy Près Doctrine, Resulting Trusts, Interpretation of Trust Instruments, Impossibility and Failure of Charitable Purpose
Charity Law Trusts Law Validity of Charitable Trusts Cy Près Doctrine Resulting Trusts Interpretation of Trust Instruments Impossibility and Failure of Charitable Purpose

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Parties

H. M. Attorney General

Claimant

Zedra Fiduciary Services (UK) Limited

First Defendant

Diana Iona Bruce

Second Defendant

John Damian Nicholas Stidworthy

Third Defendant

Procedural Posture

Charity/trusts / Judgment on Validity of Trust and Directions for Further Hearing on Scheme

Legal Issues

  1. 1 Whether the Deed created a valid charitable trust or is subject to a resulting trust for the donors or their estates
  2. 2 Whether the trust fails for initial impossibility or for lack of general charitable intention
  3. 3 Whether the court has jurisdiction to make a cy-près or administrative scheme altering the trust

Ratio Decidendi

The Deed created a valid charitable trust with the principal purpose of benefitting the nation by accumulating a fund to be applied in discharge of the National Debt, and a subsidiary purpose to reduce the National Debt in case of national exigencies. The trust was an immediate and unconditional gift to charity, not subject to a condition precedent. The original purposes of the trust cannot now be carried out, constituting a case of subsequent failure, and the court has jurisdiction to make a cy-près scheme. The question of the appropriate scheme is deferred for further hearing.

Court Disposition

The trust is valid; court has cy-près jurisdiction; issue of scheme deferred.

Orders

  • The claim of the second and third defendants that the National Fund is held on resulting trusts for the donors or their estates is rejected.
  • The court has jurisdiction to make a cy-près scheme altering the charitable trust.