Diana fund confident of court victory

The Diana, Princess of Wales Memorial Fund today shrugged off impending legal proceedings against it, insisting the action was “groundless and implausible”.

The fund, which has £48m (€69.6m) in the bank, is being sued by an American souvenir maker over its failed legal bid to stop the US company selling Diana memorabilia.

The lengthy legal battle with Franklin Mint – which produces Diana dolls and plates – has led to the freezing of all the charity’s assets for more than a year.

The fund first took legal action against Franklin Mint in 1998 in an unsuccessful £4m (€5.8m) bid to stop them making and selling the Diana souvenirs.

Franklin Mint, in turn, is now counter-suing in a $25m (€20.2m) law suit in Los Angeles for malicious prosecution in the original case.

In the latest twist, a judge in Los Angeles ruled today that the legal action will go ahead and be heard on November 5 this year.

Andrew Purkis, chief executive of the fund, said he was looking forward to the resolution of the case.

He said: “We are pleased that the damaging period of waiting will soon be over and we have full confidence in the great strength of our defence.

“We believe that the allegations of malice against the Trustees are groundless and implausible. We regret the waste of time and energy caused, and the interruption of much needed humanitarian work amongst some of the world’s and the UK’s most vulnerable people.”

The memorial fund was set up in 1997 following Diana’s death and has pledged millions of pounds in grants.

On July 11 last year, it announced that it had been forced to freeze grant payments to 127 humanitarian projects around the world due to the court case.

The Charity Commission has previously described the decision to freeze grants as a “massive blow” and warned voluntary organisations to take “great care” over launching legal action.

Causes including HIV/Aids treatment centres and landmine clearance projects - charities which were championed by Diana – are under threat because of the financial situation.

About 120 voluntary groups could be affected while 500 jobs at the fund and its beneficiaries are under threat.

A spokeswoman for the fund said they had secured an extra £6 million to support ongoing projects while legal proceedings were under way.

Last year, a spokesman for Franklin Mint insisted the Fund had fought a “suicidal” legal action and should be held responsible for its “bad behaviour”.

The company has pledged that any money it receives from the legal action will go to charity.