White & Ors v Williams & Ors

White & Ors v Williams & Ors

The Bibleway Trustees are not entitled to indemnity from the Lewisham, Bethnal Green, and Mitcham Buildings for liabilities incurred, including the Abrahams loan, because those liabilities arose from breaches of trust and improper conflation of trust and Cambridge Congregation affairs. The charging order in favour of Mr Abrahams is refused because the equities favour the congregations who would be unfairly prejudiced, and the loan was made and incurred in breach of trust. Cy-près schemes for transfer of the buildings to the respective congregations are approved, with terms reflecting the spirit of the original gifts.

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 (county Court) / Applicant (charging Order): Alistair Abrahams
Jurisdiction
England and Wales
Judgment Date
10 March 2011
Procedural Posture
Civil (charity/trusts) / Final Judgment After Trial and Combined Hearing of Cy Près and Charging Order Proceedings
Outcome
Bibleway Trustees' indemnity claim dismissed in entirety; Mr Abrahams' application for a final charging order refused; cy-près schemes for transfer of church buildings approved.
Legal Topics
Cy Près Schemes, Trustee Indemnity, Breach of Trust, Charging Orders, Charitable Property, Trustee Duties
Charity Law Trust Law Civil Procedure Cy Près Schemes Trustee Indemnity Breach of Trust Charging Orders Charitable 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 (county Court) / Applicant (charging Order)

Procedural Posture

Civil (charity/trusts) / Final Judgment After Trial and Combined Hearing of Cy Près and Charging Order Proceedings

Legal Issues

  1. 1 Whether Bibleway Trustees are entitled to indemnity from trust assets for liabilities incurred
  2. 2 Whether Mr Abrahams is entitled to a final charging order over the Lewisham Building
  3. 3 Whether Bibleway Trustees committed breaches of trust precluding indemnity

Ratio Decidendi

The Bibleway Trustees are not entitled to indemnity from the Lewisham, Bethnal Green, and Mitcham Buildings for liabilities incurred, including the Abrahams loan, because those liabilities arose from breaches of trust and improper conflation of trust and Cambridge Congregation affairs. The charging order in favour of Mr Abrahams is refused because the equities favour the congregations who would be unfairly prejudiced, and the loan was made and incurred in breach of trust. Cy-près schemes for transfer of the buildings to the respective congregations are approved, with terms reflecting the spirit of the original gifts.

Court Disposition

Bibleway Trustees' indemnity claim dismissed in entirety; Mr Abrahams' application for a final charging order refused; cy-près schemes for transfer of church buildings approved.

Orders

  • Bibleway Trustees' indemnity claim dismissed.
  • Interim charging order set aside; no final charging order granted to Mr Abrahams.