Dignity Funerals Limited & Anor v Inertia Financial Consultancy Designated Activity Company & Ors

Facts

The Third Defendant, then called Pride Planning Ltd, sold funeral plans. Customers paid not the company but the Pride Planning Trust, of which they became beneficiaries; Pride Planning could appoint the trustees. When the Financial Services and Markets Act 2000 regime was extended in 2022 so that funeral plan providers required FCA authorisation, Pride Planning did not pursue authorisation and on 12 October 2022 entered an Asset Sale Agreement transferring its business to Dignity Funerals Limited, an authorised provider. 17,643 customers opted in and purported to assign their interests in the Trust to Dignity, 14,035 in signed writing and 3,608 by telephone. In March 2024 Mr Deering and Mr Noblett raised a claim by Pride Planning against the Trust for £595 cancellation fees per plan. Trustees Mr Bold and Mr Benson-Francis thought it nonsense; in September 2024 they were removed and Redshank appointed. Mr Deering suggested the Trustees instruct Mr Chinnery of Valemus, who advised there was no viable defence; within four weeks the Trustees settled for £13,771,245, paying away the entire Trust assets of £12,616,630, which passed on to Pride Planning Holdings and Inertia. Dignity, having obtained an account of the Trust before Deputy Master Dovar, applied for proprietary and freezing injunctions and a representation order.