Dingle v Turner
A trust for the relief of poverty among the employees of a company was charitable, because poverty trusts are an exception to the requirement that the beneficiaries form a section of the public.
Facts
A testator left part of his estate on trust to pay pensions to poor employees of E Dingle & Co Ltd, a company in which he had been involved. The question was whether the trust was charitable, given that its beneficiaries were linked by their employment by a particular company, which would have prevented an educational trust from being charitable under Oppenheim.
Legal principle
The House of Lords held that the trust was charitable. Lord Cross said that the poor relations and poor employees cases were an anomalous exception to the public benefit requirement, but they were too well established to be overruled. Trusts for the relief of poverty can be charitable even if the beneficiaries are linked by a personal nexus, such as employment or family relationship. He suggested that the question of whether a class is a section of the public should be one of degree, depending on the purpose of the trust, but the other Law Lords did not decide that point.
Related cases on charitable trusts
- Chichester Diocesan Fund and Board of Finance Inc v Simpson [1944] AC 341
- Re Compton [1945] Ch 123
- Re Finger's Will Trusts [1972] Ch 286
- Gilmour v Coats [1949] AC 426
- Re Harwood [1936] Ch 285
- Re Hetherington [1990] Ch 1
- Income Tax Special Purposes Commissioners v Pemsel [1891] AC 531
- IRC v Baddeley [1955] AC 572
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