Until now, the general approach has been that a company cannot claim privilege against its own...
The recent case of Knipe v British Racing Drivers’ Motor Sport Charity and others [2020] EWHC 3295 (Ch) concerned the will of former British racing driver, Barrie Russell Williams.
Mr Williams, a respected figure on the British racing circuit and winner of the 1964 Welsh Rally, died on 8 September 2018. His will contained a number of legacies, though in this case it was the residuary legacies that caught the attention of the High Court.
Under his will, he gave the residue of his estate in a number of shares, as follows:
a) 50% to the British Racing Drivers Club Benevolent Fund;
b) 30% to the British Racing Drivers Club absolutely, but with the request that the monies be held as the ‘Barrie Williams scholarship fund’ and used at the discretion of the club to provide for an annual scholarship for the training of young racing drivers;
c) 10% for the Royal Society for the Prevention of Cruelty to Animals;
d) 10% for the Cancer Research Fund.
The problems related to clause 8(a) and 8(d) of the will.
For clause 8(a), the problem was that there is not an institution known as the British Racing Drivers Club Benevolent Fund. Nevertheless, through application of section 21(2) of the Administration of Justice Act 1982, as well as common law rules on contractual interpretation, evidence of the testator’s intention could be utilised.
It was therefore held that, given Mr Williams’ “professional background, membership of the [British Racing Drivers Club] and long familiarity with its affairs”, the gift could be held to apply to the British Racing Drivers’ Club Motor Sport Charity – a benevolent fund administered by the British Racing Drivers’ Club.
Similarly with clause 8(d), there is not an existing registered charity known as the Cancer Research Fund. The claimant submitted that the gift was intended for a charitable purpose, which would allow the executors to decide for themselves how best to dispose of the legacy to further the relevant charitable purpose. The judge agreed, citing clause 8(d) as referring “to the general charitable purpose of cancer research”.
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