Diana fund hit by $25m lawsuit

<div class="section1"><div class="Normal">The charity set up in memory of Princess Diana seemed doomed to years of litigation on Saturday after an American judge gave a souvenir maker the go-ahead to sue it for millions.<br /><br />Much of the money donated by the public after her death in 1997 could be consumed in legal fees. The Diana, Princess of Wales Memorial Fund has already frozen many of its grants to worthy causes in anticipation of the lawsuit from Franklin Mint, which makes Diana dolls and other souvenirs.<br /><br />The case stems from the charity''s abortive attempt to sue the American company in 1998 to stop it making the dolls.It had accused Franklin, owned by Los Angeles-based billionaires Stewart and Lynda Resnick, of acting "like vultures feeding on the dead".<br /><br /></div> </div><div class="section2"><div class="Normal">But the Charity Commission has described the decision to freeze grants as a "massive blow" and warned voluntary organisations to take great care over launching legal action. Before bringing the case, the charity had to ask permission from the High Court and John Morris, the then attorney-general. <br /><br />Morris later said he was "very concerned" about the course the litigation had taken and questioned whether it was in the interests of the charity. <br /><br />The unsuccessful case cost the charity £2.5 million in legal fees, including a £6,500 bill for lawyers to read condolence books in search of evidence concerning the public''s perception of the princess'' charitable works. <br /></div> <div class="Normal" style="" margin-left:360pt=""><span style="" font-weight:="" bold="" font-style:="" italic="">Sunday Times, London</span></div> </div>