Louisiana State Supreme Court Ruling Causes Donor Discontent
The closure of Newcomb College at Tulane University raises question about use of donations.
March 31, 2011 at 08:00 PM
4 minute read
Years after its horrific devastation of New Orleans, Hurricane Katrina just claimed two more victims–Newcomb College for women at Tulane University and the sanctity of donor intent in Louisiana.
The fate of both was sealed in February when the state Supreme Court ruled that Tulane had no obligation to honor Josephine Newcomb's 104-year-old bequest that it maintain, in perpetuity, a women's college as a memorial to her deceased daughter Sophie. After five years of litigation fueled by the spirited opposition of alumnae and Newcomb's descendents, the ruling ratified
Tulane's 2005 decision to abolish the college. The path to the ruling was fraught, both legally and ethically, and revealed the frailty of the rule of law when its officers don't want to comply.
The case began when Tulane cited the damage and effects of Katrina as a reason for restructuring itself, including the elimination of Newcomb College as a separate degree-granting entity. Vociferous opponents of the plan pointed out that the terms of Newcomb's gifts and of her 1901 will required Tulane to keep the college going. Despite the fact that it had honored the very specific conditions Newcomb placed on her gifts for 15 years before she died, and for 104 years after her death, Tulane claimed it had no obligations to her or her descendents.
Three levels of state courts also failed to discover what Josephine Newcomb had in mind when she handed over $70 million (adjusted for inflation) to Tulane University. They seem to have forgotten about the time when Newcomb discovered Tulane wasn't spending her donation on the women's college and threatened to stop funding it and instead establish a new college in Georgia. Tulane quickly apologized and even passed resolutions promising, again, to maintain Newcomb College. The judges probably also didn't think it relevant that Tulane had received other complaints about it not respecting “donor intent.” The judges looked only at the words of her will and concluded that she hadn't placed any restrictions on her bequest, and that Tulane was not required to keep the college going.
But that conclusion ignores both the facts of the case and settled Louisiana law requiring courts to respect both a donor and a testator's intent, and, when that intent is in doubt, to make extra efforts to find out what that intent is. A reading of the key dissent of two appellate judges in the case makes this point as clear as a bell. If I had harbored any doubts– extralegal, emotional, common sensical or otherwise–about the argument to keep Newcomb College intact, they would have been blown away by the clarity and dispositiveness of that dissent. A reasonable person reading the whole record can conclude only that the Powers That Be just wanted to let Tulane have its way.
My cynicism saves me from bafflement about how Louisiana's courts could ignore their own law. I am guided in my thinking by the words of others, such as Machiavelli (or, more recently, the new Chicago mayor, Rahm Emanuel) who said, “Never waste a good crisis,” as Tulane certainly did not when Katrina became the excuse to take over Newcomb's legacy. Or that disreputable fixer Roy M. Cohn who said, “I don't want to know what the law is; I want to know who the judge is,” and whose sentiment might have inspired Tulane's confidence in the state's judiciary to reach the desired decision. And every first-year law student recalls the contracts professor who said about nearly every issue, “That is the majority rule of law in the United States–except in Louisiana.” Now we can add, “The majority rule is that 'donor intent' must be given great deference–except in Louisiana.”
As former Newcomb College Dean, Anna E. Many once said, “Remember ladies: [Tulane] only married us for our money.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFrom Reluctant Lawyer to Legal Trailblazer: Agiloft's GC on Redefining In-House Counsel With Innovation and Tech
7 minute readLegal Tech's Predictions for Legal Ops & In-House in 2025
Trending Stories
- 1How I Made Partner: 'Take Every Opportunity to Get Involved in the Business Side of the Firm,' Says Alyssa Domzal of Ballard Spahr
- 2People in the News—Feb. 5, 2025—Eckert Seamans, Rawle & Henderson
- 3Librarian's Termination Violated First Amendment Protections, Lawsuit Claims
- 4Choice-of-Law Issues as the UCC 2022 Amendments Come into Effect
- 5Six Benefits of Taking an Opposing Medical Expert’s Deposition
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250