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November 2009
Dartford residents win appeal to Charity Tribunal - in part
This was an appeal by two local residents of Dartford against the Charity Commission's Scheme which ratified the earlier sale of charity land in breach of trust (see 'Playground complaints' in Caritas, issue 22, September 2009).
The land, which is an integral part of Central Park in Dartford, was sold to a developer in error by Dartford Borough Council in 2004, in the mistaken belief that it was not charity land. The Charity Commission made a scheme in 2008 which retrospectively authorised the sale, and made DBC pay the charity compensation. It also allowed the charity to buy replacement land and made administrative changes to the charity.
The Tribunal upheld the appeals from the residents in part. It found that in some respects the scheme made by the Charity Commission was inadequate and will require the scheme to be amended to reinstate the charity's original objects and to provide a robust system for managing the conflicts of interest faced by DBC in its dual role of local authority and charity trustee. The Tribunal has invited the views of the parties and of DBC as to whether it should quash the scheme and direct the Charity Commission to make a new one, or use its powers to amend the scheme.
This was the first time that litigants in person have appeared before the Tribunal, which adapted its procedures to assist them eg by ruling on the issues in advance, and allowing the Charity Commission to put its case first so they could respond. The Tribunal's Dartford site visit (with the Charity Commission in attendance) also allowed the appellants to show the Tribunal first-hand why they were so concerned about the development proposals.
The Tribunal had previously ruled that it had no power to set aside the earlier land sale. It has now decided that there would be no merit in asking the Charity Commission to investigate further the circumstances in which DBC came to dispose of part of the charity's land, concluding that the developer was entitled to rely on the statutory protection afforded to a buyer of charity land who acts in 'good faith', and who in this case apparently relied upon incorrect legal advice about the status of the land.
The Tribunal will also order that the charity is now registered with the Charity Commission and that its land is separately registered at the Land Registry, so local people can be reassured that any further development plans will not affect this charity.
www.charity.tribunals.gov.uk/decisions.htm
Author: Clarissa Dann
Clarissa Dann was the editor of Caritas as well as an HR and management online service,he People Bulletin until July 2011.
She is now the editor of the specialist trade finance magazine, Trade and Forfaiting Review which can be viewed at www.tfreview.com but does write on charity finance and investment from time to time.
Clarissa has a background in legal and professional publishing, as well as business journalism and holds an MBA from Cass Business School. She has been one of the judges for the non-profit category of the Chartered Institute of Marketing's Excellence in Marketing Awards for the second year running.
She has also acted as clerk to the trustees of a small almshouses charity and as a member nominated trustee to a pension scheme of a multinational publishing company.
Click here for other articles written by Clarissa Dann
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