The Charity Commission for England and Wales v Framjee & Ors

The Charity Commission for England and Wales v Framjee & Ors

Donations made via the Website were held on trust by the Dove Trust for the specified charities or good causes nominated by donors, subject to a global sub-trust within the Dove Trust. The trustees had a fiduciary duty to ensure donations were passed to nominated recipients, with only a limited discretion where the recipient was not a charity under English law. The arrangements also gave rise to a contract between donor and the Dove Trust, enforceable by the ultimate recipient under the Contracts (Rights of Third Parties) Act 1999. The remaining funds should be distributed pari passu among unpaid beneficiaries, as this is the fairest and most practicable method given the common misfortune...

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
Originating Summons for Declarations and Directions Under the Charities Act 2011 / Judgment After Hearing of General Issues
Outcome
Declarations and directions granted; funds to be distributed pari passu among unpaid beneficiaries.
Legal Topics
Charitable Trusts, Restricted Funds, Donor Intent, Distribution of Trust Assets, Pari Passu Distribution, Rolling Charge Method, Clayton's Case, Fiduciary Duties
Trusts Charity Law Equity Charitable Trusts Restricted Funds Donor Intent Distribution of Trust Assets Pari Passu Distribution +3 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

Originating Summons for Declarations and Directions Under the Charities Act 2011 / Judgment After Hearing of General Issues

Legal Issues

  1. 1 Did the arrangements under which the Website was operated give rise to a trust or trusts, and if so, of what nature?
  2. 2 Did the arrangements give rise to a contract between the donor and the Dove Trust, and if so, 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 Website were held on trust by the Dove Trust for the specified charities or good causes nominated by donors, subject to a global sub-trust within the Dove Trust. The trustees had a fiduciary duty to ensure donations were passed to nominated recipients, with only a limited discretion where the recipient was not a charity under English law. The arrangements also gave rise to a contract between donor and the Dove Trust, enforceable by the ultimate recipient under the Contracts (Rights of Third Parties) Act 1999. The remaining funds should be distributed pari passu among unpaid beneficiaries, as this is the fairest and most practicable method given the common misfortune...

Court Disposition

Declarations and directions granted; funds to be distributed pari passu among unpaid beneficiaries.

Orders

  • The remaining funds in the Dove Trust referable to donations made through the Website for specified charities or good causes are to be distributed among the nominated recipients on a pari passu basis.