Azaz v Denton and Another

Hearing dates: 7, 8 and 10 July 2009

His Honour Judge Richard Seymour Q.C.:

Introduction

In this action the claimant, Dr. Yehu Azaz, makes a number of claims against the first defendant, Mrs. Rena Denton, and the second defendant, Self Healing Meditation Healing Centre (“the Centre”).

The Centre is a company limited by guarantee and a registered charity. It was incorporated on 8 September 1988 under the name Denton Realization Healing Centre Charitable Trust. The name of the Centre was changed on 10 November 1992 to The Self Realization Healing Centre Charitable Trust. It adopted its present name on 22 December 1998. For the purposes of this judgment it is not necessary to distinguish between the various names of the Centre over time, and I shall simply refer to it as “the Centre” no matter what its name in fact was at the time of which I am writing. The activities of the Centre focus on the study and practice of the art and science of meditation and healing.

Mrs. Denton, as I understand it, established the Centre, possibly in conjunction with her husband, Mr. Peter Denton. She was born on 4 November 1930, and so is now 78 years of age. Her husband, I am told, is rather older, being now 81 years old. Mrs. Denton seems to be, or to be regarded by some as, the spiritual head of the Centre. She also seems to claim, or to have attributed to her by some, the status of “Guru”.

While the activities of the Centre appear to include teaching meditation and healing on both residential and non-residential courses, its base (“the Base”) at Laurel Lane, Queen Camel, Yeovil, Somerset is operated as a residence for some members of the organisation. Those who reside at the Base seem to participate in communal living, with each of the residents contributing to the work necessary to maintain the Base and to offer the courses of instruction made available.

Dr. Azaz was born on 24 January 1959. After attending Henley Grammar School he proceeded to University of Nottingham to read medicine. He graduated from the prestigious Medical School with a 2.1 degree in medical science in July 1979. He then remained in the Medical School for a further two years to complete his medical training, obtaining the degree of BM.BS in July 1981. Subsequently Dr. Azaz obtained further qualifications, DCH in September 1985 and MRCP in October 1985.

After his training Dr. Azaz held a number of medical posts. The detail of those posts is not presently material. The last was as a Registrar in paediatrics at Taunton and Somerset Hospital in Taunton, a position which Dr. Azaz held between February 1990 and January 1991.

On 23 September 1989 Dr. Azaz married the former Lizanne Davies.

At some point Dr. Azaz developed an interest in alternative healing. It seems that he decided that when his then current medical contract, at Taunton and Somerset Hospital, came to an end in January 1991 he would not seek a further medical post immediately, but he and his wife would investigate undertaking a course in healing.

Whilst he was in practice as a doctor Dr. Azaz employed the services of Elliott Bailey, life assurance and pension consultants, in relation, in particular, to arranging pension schemes, and other investments, for him. A director of that organisation was Mr. Peter James. In an attendance note made by Mr. James of a meeting with Dr. and Mrs. Azaz on 23 July 1990 Mr. James recorded:—

“Yehu's contract as a doctor at the Taunton Hospital ends in January 1991 and he has decided to cease practising as an orthodox doctor in paediatrics, and intends to devote more time to unorthodox medicine. He hopes to attend a healing course in France during 1991.”

In a letter dated 16 April 1991 to Mr. James Dr. Azaz indicated that he was no longer working and that he and his wife intended to spend the months of June and July in South Africa. In his reply, dated 25 April 1991, Mr. James noted, “that Yehu is no longer receiving a salary”.

As I understand it, Dr. Azaz and his wife commenced a healing course in France. However, it appears that they did not complete that course. In a letter to a friend, Stephanie, dated 22 September 1992 they gave an account of what they had been doing for the last year and how they intended to proceed in the immediate future:—

“We have been on the move for the last year and are writing to let you know our latest news.

Over the last twelve months we have been living in rented accommodation in the Wye valley and in Somerset. During this time we have been looking for the right property in which to live and set up a healing practice. Last month we were invited to join an existing healing centre and this has led to a major change in our plans.

We have decided to “seize the day” and have chosen a new way of life which will involve us living and working with a small group of people as one family. The Centre is a charity providing training, residential courses, retreats, individual healing and counselling and animal healing. We will be sharing in this work and in the day-to-day running of the centre.

This is a huge change for us and we will be gradually settling in over the next few months. Before we get into the swing of full-time healing work we have decided to go travelling for four months and intend to leave at the beginning of next year.”

It seems that some time in 1990 Dr. Azaz first encountered Mrs. Denton. Mrs. Denton, according to Dr. Azaz, had various views about spirituality and healing which she communicated to Dr. and Mrs. Azaz, and they became persuaded of the wisdom of those views.

In September 1992 Dr. and Mrs. Azaz decided, or were persuaded, to become resident at the Base. The name of the Centre and the address of the Base were set out in the letter to Stephanie from which I have quoted.

It seems that on 7 January 1993 Dr. and Mrs. Azaz had an interview with Mr. David West, a partner in the solicitors' firm, Taylor Joynson Garrett. Mr. West made an attendance note of the interview, of which a copy was put in evidence, and he followed that up with a letter to Dr. and Mrs. Azaz dated 12 January 1993. The attendance note included:—

“Dr. and Mrs. Azaz have moved to a new healing centre which is a registered charity and want to transfer all their assets to it before they set off on their trip.

DEW [Mr. West] warning them very strongly about the dangers of what they propose doing. DEW pointing out the charity could change its nature or they could fall out with the other people. Dr. and Mrs. Azaz saying they understood his misgivings but had thought about it very deeply and having lived with the people for three months were absolutely satisfied they were making the right decision. They have reached an “arrangement” with the six people who run the charity and are happy with it. DEW saying the charity would have no liability to them at all if they should leave in the future.

DEW suggesting they make a large contribution but retain some capital just in case. As it is they will not even have a house of their own. Dr. and Mrs. Azaz were adamant that everything must be transferred to the charity. DEW suggesting they consider waiting perhaps a year or at least until after their trip and then give three-quarters of what they own. Dr. and Mrs. Azaz again refused to consider this option. They have discussed it with Ian McFarlane and Peter James but have not told their families of the financial side of their new life with the charity. They may do so in a few years time.

DEW explaining that he must advise them of the pitfalls of what they are doing but finally having to concede that we would do the transfers for them.”

The letter dated 12 January 1993 included the following:—

“I was very glad to see you both on Friday when I made clear my concern about your plans and I thought I should set these out in writing because the situation is critical.

I appreciate that you have both thought matters through and have taken great care in doing so but you will know that, even so, people can still make mistakes. Apart from that, events can happen which are totally unforeseeable and out of one's control.

Both of you are free to do whatever you like with your assets as responsible adults. The substance of what you have decided to do is to give away Lizanne's substantial fortune which derived from her father's estate and various family trusts to a charity which at law is a separate legal entity. The money which you put into the Charity will no longer be your money and cannot be used to benefit you unless it is to pay your reasonable expenses and salary and these payments must be agreed by the Directors. The Charity will in no sense just be an extension of you. The Charity Commissioners will expect Accounts to be submitted each year. I realise that you respect the other Directors of the Charity and wish to be totally committed to them and to show your commitment. However as you both know and it has already been Lizanne's experience, the situation can change and, in your case, should it change the end result will be drastic. It is likely Yehu will be able to earn his living and his keep but if, for instance, you should have separated or divorced, Lizanne will be financially exposed and may not be able to keep herself. This may be the lot of many people but it must be considerably more difficult where somebody has already enjoyed substantial...