Scolt Head and District Common Rightsholders Association v Information Commissioner & Anor
[2023] UKFTT 1037 (GRC)
John Walsh & Ors v Peter Spence & Ors
3 July 2023
[2023] EWHC 1661 (Ch)
High Court
Three charities' trustees sued because they couldn't get their financial records from another group. The judge said the trustees couldn't just get *all* the other group's records to look for problems; they had to stick to getting *their own* records first. The judge said they got most of what they needed already, and they would get their own records but would have to pay for getting them organized and delivered.
Key Facts
- •Claimants (Cs) are trustees of three charities (CTF, JCF, WMF) associated with the Royal Antediluvian Order of Buffaloes (RAOB).
- •Defendants (Ds) represent the unincorporated RAOB Grand Lodge of England.
- •Cs allege Ds withheld financial records necessary for preparing and auditing the charities' accounts.
- •The main point of contention is access to the RAOB GLE's Sage accounting system, which contains data for both the RAOB and the charities.
- •Cs initially claimed the Sage database was trust property, later conceding this point.
- •Ds offered access to Sage but not a full copy due to data protection concerns.
- •Cs also sought other documents (KPMG report, internal audit report, previous auditors' working papers, police inquiry details).
- •Cs' requests for information were sporadic and initially encompassed broad access to RAOB GLE records.
Legal Principles
Beneficiaries have a right to seek disclosure of trust documents, based on the court's inherent jurisdiction to supervise trust administration.
Lewin on Trusts (20th edition), Schmidt v Rosewood Trust Ltd
The court's jurisdiction to supervise trust administration is limited to cases where disclosure is sought by a beneficiary in their capacity as such, and does not extend to pre-action disclosure for hostile proceedings against trustees or third parties.
Lewin on Trusts, Re CA Settlement, Re Internine Trust and Azali Trust, Re A Settlement
Information is not normally property, but equity will restrain its transmission if it breaches confidence.
Boardman v Phipps
CPR Part 64.2(a)(ii) applies to questions arising in the execution of a trust, primarily concerning internal trust matters; it does not confer jurisdiction to obtain pre-action disclosure from third parties.
CPR Part 64, White Book commentary
Pre-action disclosure must meet the strict requirements of CPR 31.16.
CPR 31.16
Charity proceedings require the Charity Commission's authorization under s.115 of the Charities Act 2011.
Charities Act 2011 s.115
Outcomes
Delivery up of the Charities' own records (approximately 6 pallets of documents) ordered, subject to agreement on costs of collation and delivery.
Charities are entitled to their own documents; the dispute concerns costs of retrieval.
Application for access to the Sage database and other documents dismissed.
Court lacks jurisdiction to order pre-action disclosure from third parties for the purpose of pursuing other potential claims, even if the claimants are trustees. The application was in essence a fishing expedition.