White & Ors v Williams & Ors [2011] EWHC 494 (Ch) (10 March 2011)

White & Ors v Williams & Ors [2011] EWHC 494 (Ch) (10 March 2011)

The Bibleway Trustees are not entitled to indemnity from the Lewisham, Bethnal Green, or Mitcham Buildings for liabilities incurred in relation to the Cambridge Congregation, including the debt to Mr Abrahams, because each building was held for the benefit and responsibility of its respective congregation, and the Trustees' conduct constituted breaches of trust by conflating assets and incurring liabilities for one congregation at the expense of others. The charging order sought by Mr Abrahams over the Lewisham Building is refused for the same reason.

Citation
[2011] EWHC 494 (Ch)
Parties
Claimant: Michael White; Claimant: Monica Knight; Claimant: Claudette Brown; Claimant: Genie White; Claimant: Yvonne Palmer; Claimant: Michael Clarke; Defendant: Lynwal Williams; Defendant: Kay Duncan; Defendant: David Ogunlana; Defendant: Leon Williams; Defendant: HM Attorney General; Defendant: Harold C McFarlane; Defendant: Clinton P McFarlane; Defendant: Selwyn L Forte; Defendant: Jennifer Elevique; Defendant: Diana N Jacobs; Defendant: Beverley Carter-Allen; Defendant: Rita Bailey; Defendant: Euston Copeland; Defendant: Sandra Copeland; Claimant: Alistair Abrahams
Jurisdiction
England and Wales
Judgment Date
10 March 2011
Procedural Posture
Charity/cy Près and Charging Order Proceedings / Post Trial Judgment Following Further Hearing
Outcome
Cy-près schemes approved for transfer of church buildings to local trustees; indemnity and charging order claims dismissed.
Legal Topics
Cy Près Schemes, Trustee Indemnity, Breach of Trust, Charging Orders, Charity Property, Trustee Duties
Charity Law Trusts Civil Procedure Cy Près Schemes Trustee Indemnity Breach of Trust Charging Orders Charity Property +1 more

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Parties

Michael White

Claimant

Monica Knight

Claimant

Claudette Brown

Claimant

Genie White

Claimant

Yvonne Palmer

Claimant

Michael Clarke

Claimant

Lynwal Williams

Defendant

Kay Duncan

Defendant

David Ogunlana

Defendant

Leon Williams

Defendant

HM Attorney General

Defendant

Harold C McFarlane

Defendant

Clinton P McFarlane

Defendant

Selwyn L Forte

Defendant

Jennifer Elevique

Defendant

Diana N Jacobs

Defendant

Beverley Carter-Allen

Defendant

Rita Bailey

Defendant

Euston Copeland

Defendant

Sandra Copeland

Defendant

Alistair Abrahams

Claimant

Procedural Posture

Charity/cy Près and Charging Order Proceedings / Post Trial Judgment Following Further Hearing

Legal Issues

  1. 1 Whether cy-près schemes should be approved for transfer of church buildings to local trustees
  2. 2 Whether Bibleway Trustees are entitled to indemnity from trust assets for liabilities incurred
  3. 3 Whether a charging order should be granted to Mr Abrahams over the Lewisham Building

Ratio Decidendi

The Bibleway Trustees are not entitled to indemnity from the Lewisham, Bethnal Green, or Mitcham Buildings for liabilities incurred in relation to the Cambridge Congregation, including the debt to Mr Abrahams, because each building was held for the benefit and responsibility of its respective congregation, and the Trustees' conduct constituted breaches of trust by conflating assets and incurring liabilities for one congregation at the expense of others. The charging order sought by Mr Abrahams over the Lewisham Building is refused for the same reason.

Court Disposition

Cy-près schemes approved for transfer of church buildings to local trustees; indemnity and charging order claims dismissed.

Orders

  • Transfer of Lewisham, Bethnal Green, and Mitcham Buildings to respective local trustees under cy-près schemes.
  • Dismissal of Bibleway Trustees' claims for indemnity from trust assets.