Bruce County removed as trustee of charitable trust for 'astonishing breach'

The 1894 Anglican Rectory in Southampton, Ont. at the centre of a charitable trust dispute, as seen on Nov. 2, 2022. (Scott Miller/CTV News London)

Bruce County will not have control over what happens to a historic building in Southampton after being removed as the trustee of a charitable trust it used to buy the property.

“We are relieved that Bruce County has been prevented from demolishing the 1894 former rectory that has been recognized by the National Trust for Canada as one of Canada’s Top 10 Endangered Places,” said Laura Robinson, board member with the Southampton Cultural Heritage Conservancy.

In an Oct. 12 court ruling, Bruce County was removed as trustees of the Krug Trust. Justice G.D Lemon said, “The county cannot be trusted to act appropriately with this property.”

In 2005, heritage advocate Bruce Krug left behind a $550,000 trust for Bruce County to use to store and display the county’s archives.

In 2018, Bruce County used money from the trust to buy a 123 year old Anglican rectory right beside the Bruce County Museum and Cultural Centre in Southampton.

The expected intent was to build a new archives storage facility, but two months after the purchase, plans changed to involve the demolition of the historic building and the construction of a Nuclear Innovation Institute.

The Southampton Cultural Heritage Conservancy got involved in 2019 and was granted an injunction — temporarily halting the rectory’s destruction.

This past January, Bruce County was found to be in “breach of the trust” for misusing the earmarked funds for projects other than its intended purpose.

Now, the county has been stripped of its control of the Krug Trust and interim trustees, BMO Trust Inc. are being asked to sell the 1894 Anglican Rectory to anyone but, Bruce County.

In the court’s ruling, Lemon said “Such a breach is not technical, it is an astounding breach by its elected officials and staff.” “It is a case of the county ignoring its duties and doing something entirely in breach of the terms of the will.”

“We agree with Justice Lemon on all counts and are satisfied that the legacy of Bruce Krug will now be respected,” said Robinson. “SCHC will prepare submissions for Justice Lemon for a more permanent board of trustees for the Krug Trust that is transparent and of benefit to the public,” she added.

At the judgement, Bruce County CAO Derrick Thomson said, “Bruce County has received Justice Lemon’s Oct. 12, 2022 Decision regarding the Bruce A. Krug Estate. Bruce County will provide an update on the matter in the near future, as this litigation is ongoing.”