The Lloyds TSB Foundation for Scotland has welcomed a court decision ordering Lloyds Banking Group to pay it £3.5 million, describing it as “great news” for charities in Scotland.
The decision follows a dispute over the money due from the Group to the Foundation under the terms of a covenant which entitled it to a share of profits. Lloyds had claimed the Foundation was due only £38,920, while the Foundation maintained the correct sum was more than £3.5 million.
At the first hearing the judge ruled against the Foundation, but three appeal judges have now overturned that ruling, ordering Lloyds Banking Group to pay £3,543,433 million to the Foundation.
Last year the Foundation made 241 awards, totalling £2,307,699, to charities in Scotland.
Mary Craig OBE, the Foundation’s Chief Executive, said: “The court’s decision is extremely welcome and shows that the Foundation’s trustees were right not to accept the original finding… This decision will help us considerably to carry on with our work supporting charities throughout Scotland which are clearly focused on improving the quality of life for people who are disadvantaged or at risk of becoming so.”
The dispute between the banking group and the foundation took a new turn in November 2010 when the Group set up a new charity which “will eventually become the group’s only community investment vehicle in Scotland” according to The Scotsman. The new Bank of Scotland Foundation has made grants worth more than £1 million to over 200 Scottish charities.