The Charity Commission for England and Wales v Framjee & Ors [2014] EWHC 2507 (Ch) (22 July 2014)

The Charity Commission for England and Wales v Framjee & Ors [2014] EWHC 2507 (Ch) (22 July 2014)

Donations made via the Dove Trust's Website were impressed with a trust for the specified recipients, forming a global sub-trust within the Dove Trust; donors were settlors, trustees were obliged to ensure funds reached nominated recipients, subject to minimal discretion. The arrangements also gave rise to a contract enforceable by ultimate recipients under the Contracts (Rights of Third Parties) Act 1999. Distribution of remaining funds should be made on a single pari passu basis among all unpaid recipients, not by the two-pool or rolling charge method.

Citation
[2014] EWHC 2507 (Ch)
Parties
Claimant: The Charity Commission for England and Wales; First Defendant: Pesh Framjee; Second Defendant: Bryan Gunn; Third Defendant: Donna Naghshineh; Fourth Defendant: Keith Colman; Fifth Defendant: Peter Farley
Jurisdiction
England and Wales
Judgment Date
22 July 2014
Procedural Posture
Application for Declarations and Directions Under Charities Act 2011 / Judgment After Hearing
Outcome
Declarations granted; directions given for pari passu distribution of remaining funds.
Legal Topics
Charitable Trusts, Restricted Funds, Distribution of Charitable Donations, Fiduciary Duties, Pari Passu Distribution, Third Party Rights in Contract
Charity Law Trusts Law Contract Law Charitable Trusts Restricted Funds Distribution of Charitable Donations Fiduciary Duties Pari Passu Distribution +1 more

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Parties

The Charity Commission for England and Wales

Claimant

Pesh Framjee

First Defendant

Bryan Gunn

Second Defendant

Donna Naghshineh

Third Defendant

Keith Colman

Fourth Defendant

Peter Farley

Fifth Defendant

Procedural Posture

Application for Declarations and Directions Under Charities Act 2011 / Judgment After Hearing

Legal Issues

  1. 1 Did the arrangements under which the Website was operated give rise to a trust or trusts, and of what nature?
  2. 2 Did the arrangements give rise to a contract between the donor and the Dove Trust, and what were its terms?
  3. 3 How should the remaining funds in the Dove Trust which are referable to donations made through the Website for specified charities or good causes be distributed among the recipients nominated by the donors?

Ratio Decidendi

Donations made via the Dove Trust's Website were impressed with a trust for the specified recipients, forming a global sub-trust within the Dove Trust; donors were settlors, trustees were obliged to ensure funds reached nominated recipients, subject to minimal discretion. The arrangements also gave rise to a contract enforceable by ultimate recipients under the Contracts (Rights of Third Parties) Act 1999. Distribution of remaining funds should be made on a single pari passu basis among all unpaid recipients, not by the two-pool or rolling charge method.

Court Disposition

Declarations granted; directions given for pari passu distribution of remaining funds.

Orders

  • Distribution of remaining Dove Trust funds referable to Website donations for specified recipients to be made on a single pari passu basis among all unpaid recipients.
  • Parties to attempt agreement on specific questions and directions; unresolved matters to be referred to court or Commission.