Court case puts collections at risk
Rebecca Atkinson, 21.07.2010
Legal battle over Wedgwood's pension shortfall could put other collections at risk
A court case to decide whether the Wedgwood Museum collection can be sold to meet a pension deficit could have ramifications for other museums and put collections at risk of being broken up.
The Wedgwood Museum Trust (WMT), which went into administration in April after being saddled with an estimated £134m pension shortfall, is currently awaiting a court case to decide whether the Wedgwood Pension Plan Trustee Limited (WPPTL) has a legal claim to its collection.
The WPPTL could argue that pension protection legislation overrules the common law that protects collections – meaning the Wedgwood Museum Trust’s collection could be sold to meet the pension liability.
It is believed this is the first time the status of museum collections as protected assets will be subject to a court hearing.
“It is a tenet of museum understanding that collections are protected if an organisation finds itself in an insolvent position,” says Adrian Babbidge, director of heritage consultancy Egeria. “If the court rules that all assets are available to meet debts then this sets a precedent that could apply to any museum that goes bust.”
A date for the court hearing has not yet been set, but is expected in September. Tristram Hunt, the local MP for Stoke-on-Trent Central, has met with culture minister Ed Vaizey about what options there are to keep the collection together.
Hunt said that if the court does find in favour of the pension trustees, then new legislation might be needed to protect collections from pension liabilities.
A spokesman for the Department for Culture, Media and Sport said: “The minister has taken a close interest in this situation and officials are continuing to monitor the case closely, working with all the interested parties. We must now await the outcome of the legal proceedings to clarify the status of the collection.”
The Wedgwood Museum Trust (WMT), which went into administration in April after being saddled with an estimated £134m pension shortfall, is currently awaiting a court case to decide whether the Wedgwood Pension Plan Trustee Limited (WPPTL) has a legal claim to its collection.
The WPPTL could argue that pension protection legislation overrules the common law that protects collections – meaning the Wedgwood Museum Trust’s collection could be sold to meet the pension liability.
It is believed this is the first time the status of museum collections as protected assets will be subject to a court hearing.
“It is a tenet of museum understanding that collections are protected if an organisation finds itself in an insolvent position,” says Adrian Babbidge, director of heritage consultancy Egeria. “If the court rules that all assets are available to meet debts then this sets a precedent that could apply to any museum that goes bust.”
A date for the court hearing has not yet been set, but is expected in September. Tristram Hunt, the local MP for Stoke-on-Trent Central, has met with culture minister Ed Vaizey about what options there are to keep the collection together.
Hunt said that if the court does find in favour of the pension trustees, then new legislation might be needed to protect collections from pension liabilities.
A spokesman for the Department for Culture, Media and Sport said: “The minister has taken a close interest in this situation and officials are continuing to monitor the case closely, working with all the interested parties. We must now await the outcome of the legal proceedings to clarify the status of the collection.”
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