Hunt & Anor v McLaren & Ors

Hunt & Anor v McLaren & Ors

The trust created by Major Jennings is a valid 'contract-holding' gift to the current full members of the Club (not including associate or temporary members), held on bare trust for them, subject to the Club rules. On dissolution, assets are to be distributed per capita among adult and senior members. Associate and temporary members do not have beneficial entitlement to the assets.

Parties
Claimant: Howard Frederick Hunt; Claimant: Victor Clyde Barfoot; Defendant: Graham McLaren; Defendant: Laurence Geary; Defendant: Joanna Freeman; Defendant: Peter Morrison Nevill Jennings; Defendant: Anthony Stanley Brown; Defendant: Mark Anglim
Jurisdiction
England and Wales
Judgment Date
04 October 2006
Procedural Posture
Civil / Judgment
Outcome
Declaration of validity of trust as contract-holding gift to current full members; associate and temporary members excluded from beneficial entitlement; directions on powers of committee and trustees adjourned.
Legal Topics
Unincorporated Associations, Beneficiary Principle, Purpose Trusts, Club Property, Distribution of Assets, Perpetuity, Membership Rights

Case Brief

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Parties

Howard Frederick Hunt

Claimant

Victor Clyde Barfoot

Claimant

Graham McLaren

Defendant

Laurence Geary

Defendant

Joanna Freeman

Defendant

Peter Morrison Nevill Jennings

Defendant

Anthony Stanley Brown

Defendant

Mark Anglim

Defendant

Procedural Posture

Civil / Judgment

  1. 1 Whether the trust created by Major Jennings for Horley Town Football Club is valid under English trust law
  2. 2 Whether the club's assets are held on trust for members, and if so, which members are entitled to benefit
  3. 3 The effect of changes in club rules on the beneficial ownership of the club's assets, particularly regarding associate and temporary members

Ratio Decidendi

The trust created by Major Jennings is a valid 'contract-holding' gift to the current full members of the Club (not including associate or temporary members), held on bare trust for them, subject to the Club rules. On dissolution, assets are to be distributed per capita among adult and senior members. Associate and temporary members do not have beneficial entitlement to the assets.

Court Disposition

Declaration of validity of trust as contract-holding gift to current full members; associate and temporary members excluded from beneficial entitlement; directions on powers of committee and trustees adjourned.

Orders

  • Declaration that the beneficial ownership of the Club's assets is held on bare trust for current full members (adult and senior members) only.
  • Distribution on dissolution to be per capita among adult and senior members.