Charity
Trustees Insurance > Claims Examples
1)
Claim for alleged Racial Discrimination
Two separate
claims have been made by former employees of the charity,
alleging racial discrimination :
The first
employee's claim against the trustee states that she
received discriminatory treatment in the workplace due
to her ethnic background. She alleges that the other
white employees received preferential treatment, and
that whilst off sick due to stress related illness incurred
whilst working for the trust, she was unfairly dismissed.
The second
employee also alleges that he suffered from discriminatory
treatment whilst in the employ of the trust and that
whilst off sick he was unfairly dismissed. The trustee
named states that no such discriminatory action occurred
and that the two employees were dismissed due to their
sub-standard performance and unacceptable behaviour
in the workplace, and that both employees were still
within their probationary period. The trustee also states
that both she and the trust have, in the past, received
national recognition for the work they have done to
combat racial discrimination. It is unlikely that the
claim would succeed, however it seems that a settlement
will be agreed
2) Claim for alleged Racial Discrimination
The employee
alleges that he suffered racial discrimination whilst
working for the trust, and that whilst off sick due
to a whiplash injury, he was unfairly dismissed. The
trustee claims that the employee was sacked due to their
unsatisfactory performance and irregular attendance,
during the employee's probationary period.
3) Claim for alleged Trespass
The neighbouring
landowner to the trust claims that recent constructions
carried out by the trust infringed on their property.
The trust claims that documents from the 18th century
show that the previous owner passed the land over to
them, whereas the claimant declares that the land never
legally belonged to the previous owner.
It appears that the claim will be upheld and that the
claimant is indeed the legal owner of the disputed property.
The trustees will be responsible for damages and for
restoring the land to its former condition.
4) Claim for misuse of Trust Funds
Following
an investigation by the Charity Commission, it was declared
that the trustees named had illegally gained payments
from the trust by use of another trading company of
which they are directors. The Charity Commission has
stated that there exists a conflict of interests and
that these salaries and dividends must be returned,
and the trust be re-structured. The claim itself is
for reimbursement of legal fees incurred. However as
the claim does not directly stem from a Wrongful Act,
but rather from the error of the solicitors involved
in the formation of the trust, the claim would not be
upheld. However, solicitors fees and investigation costs
were paid.
5) Claim for alleged defamation
Following
publication of an article, the charity trustees were
sued for defamation by another charity with similar
objectives. The claimant stated that certain statements
made in the article were untrue and gave a false representation
of the charity. The matter was eventually settled out
of court with considerable fees being paid.
6) Claim for Loss of Documents
The charity
suffered a severe loss when over £6,500 of computer
software was stolen. Not only were considerable amounts
of software lost but also the data that was contained
on them was also taken. The policy paid for the replacement
of the data and software.
7) Claim for alleged Breach of Authority
A claim was
made against a trustee by one of the charity's employees.
Before the charity ceased operating the trustee had
indicated that employees would receive an enhanced redundancy
payment, which was in breach of his authority. As a
result, several employees had made financial decisions
based on that statement, and hence ran up costs to cancel
these arrangements.
8) Claim for alleged Denial of Access
A claim was
made against the trustees as they had sub-let a section
of their premises to another organisation. This had
been done without consultation to the landlord and broke
the conditions of the charity's lease on the property,
and subsequently he ordered the eviction of the sub-tenants.
The evictees brought a successful claim against the
trustees for denial of access.
9) Claim for legal fees to defend a Charity Commission
investigation
The Charity Commission (CC) investigated a trust that
was originally established during the 1960's to research
into artificial insemination. The CC investigated the
trust's activities on the grounds that they were no
longer concerned with research and hence were not charitable
in their nature. The trust successfully defended their
charitable status, and the legal fees were paid under
the policy
10) Claim for Dishonesty of a Trustee
A claim was
made by a charity, which had suffered a loss of over
£12,000. Due to poor internal controls, one of
its trustees managed to fraudulently withdraw £11,000
in a single transaction, then a further £1500
at a later date. The claim was settled for 80% of the
total amount plus fees, a total amount of over £9,500.
11) Claim for libelous action
A claim was
made against the trustees for alleged slander. After
initial discussions the allegation was retracted and
an apology offered. The solicitor's fees which had been
incurred were settled for over £1,500.
12) Claim for legal fees to defend a Charity Commission
Investigation
An investigation
by the Charity Commission led to allegations of the
charity using their charitable status for avoidance
of tax on their trading subsidiary. The charity was
required to re-structure their operation at their own
cost, but the legal fees and other costs in their investigations
and defending these allegations were covered, coming
to a total of over £1,200.
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