15 November 2012

Trust: Christchurch Buildings Trust v. Church Property Trustees


The trust owning earthquake-damaged Canterbury Cathedral must build a new cathedral on the same site using insurance money for the rebuild, the High Court has ruled.  Legal action by concerned citizens seeking to preserve the city’s historic buildings has blocked plans by the Anglican church to use insurance money to build a temporary “cardboard cathedral” offsite.
The Anglican diocese in Christchurch has been in turmoil since earthquakes in 2010 and 2011 severely damaged its iconic cathedral.   The building was insured with insurance recoveries of some $39 million expected.
One group, dismayed by the loss of so many of Christchurch’s historic buildings lobbied to have the cathedral repaired.  The diocesan hierarchy had other plans.  Matters reached a head when government-appointed Canterbury Earthquake Recovery Authority (CERA) issued a “make safe” notice.  The diocese was given ten days to bring the cathedral down to a safe level; failing that CERA would move in and demolish the structure.  The diocese resolved to immediately demolish the cathedral to a safe height of several metres.  No firm decision was made on a rebuild, but indications were that the diocese regarded the insurance proceeds as part of general church funds to be used as it saw fit.
The High Court was told the cathedral site was established by a trust in 1851 as part of an overall plan by colonial settlement company, the Canterbury Association, to transplant part of England in the new colony.  This trust lives on now as Church Property Trustees.
Justice Chisholm said the diocese appeared to misunderstand the purpose of the Cathedral trust, which is to maintain a cathedral on its existing site.  The Trust is governed by the Trustee Act.  The Act specifies that any insurance money received must be used for the purposes of the trust only and can be used for the rebuilding or repair of trust property.
He ruled that the diocese could not proceed with any decision to use the insurance monies for a different purpose, adding that while the Cathedral Trust requires there to be a cathedral on the site, the building does not have to replicate the cathedral as it stood before the earthquakes.
Great Christchurch Buildings Trust v. Church Property Trustees – High Court (15.11.12)
12.038