Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 457]

EXTRACTED TEXT FROM PAGE:

1971]

UNIVERSITY OF ILLINOIS

447

priate administrative officers recommends that the previous authorization for funds for this project for F Y 1972 be increased by $21,500 to $85,000. T h e additional funds required for F Y 1972 are available in the operating budget of the College of Medicine. O n m o t i o n of M r . S w a i n , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d b y t h e following vote: Aye, M r . Forsyth, M r . H a h n , M r . H o w a r d , M r . H u g h e s , M r . Neal, M r . Pogue, M r . S w a i n ; no, n o n e ; absent, Dr. Bakalis, M r . Grimes, Governor Ogilvie, M r . Steger.

E S T A T E O F MARIE KESERIC

(14) Mrs. Marie Keseric who died August 16, 1970, has left a will making bequests to the St. John Evangelical Lutheran Church, Michigan City, Indiana ($20,000); to the Indiana University Foundation ($10,000); and to the University of Illinois at Urbana-Champaign, Illinois, for use on that campus ($10,000). The remainder of her estate was left to the First Presbyterian Church of Gary, Indiana. At the time Mrs. Keseric executed her will, her estate was in an amount adequate to satisfy the three specific bequests and to provide some residue for the First Presbyterian Church. Because of large medical expenses incurred during Mrs. Keseric's last illness, her gross estate was depleted so that at the time of her death it amounted to approximately $43,440. Expenses of administration have not been finally determined but will not exceed $4,400. T h e executor has proposed an adjustment in the specific bequests in order to carry out Mrs. Keseric's intention that something be available to the First Presbyterian Church, the members of which have been assisting the administration of the estate without payment. The executor has proposed that 50 per cent of the expenses of administration be paid out of the bequest to St. John Evangelical Lutheran Church, 25 per cent from the bequest to Indiana University Foundation, and 25 per cent out of the bequest to the University. St. John Evangelical Lutheran Church and Indiana University Foundation have agreed to the executor's proposal. The Vice President and Comptroller and University Council recommend approval of the proposed adjustment. I concur. O n m o t i o n of M r . H o w a r d , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d . LITIGATION INSTITUTED BY ILLINOIS BUILDING AUTHORITY (15) In 1968 the Illinois Building Authority (IBA) awarded a construction contract in the approximate amount of $5,500,000 to Talandis Construction Corporation for the Small Animal Clinic and Hospital at the Urbana-Champaign campus. Earlier this year, Talandis filed suit against I B A (Circuit Court of Cook County, 71 C H 3786) alleging breach of contract, requesting an accounting, and asking damages in the approximate amount of $2,000,000. The allegations in the complaint are to the effect that IBA required Talandis to alter its plan for the progress of the work and, as a direct result, Talandis was unable to complete its contract in accordance with its bid, thereby incurring substantial additional expense. The University has now been served with a Third Party Complaint filed in the litigation by the Illinois Building Authority against the University and the architects for the project. In essence, I B A alleges that, without the consent, approval, or advice of IBA, the University directed Talandis to stop work on a portion of the project, and that any damages which Talandis may have incurred were caused by the University. Substantially the same allegations are made against the architects. IBA seeks alternative relief in its Third Party Complaint, being (1) that the University be required to protect and indemnify IBA from any judgment entered against it and costs, or (2) a reformation of the lease between the University and I B A to provide for amortization of the amount of any judgment and costs over the unexpired portion of the lease. Indemnification only is being sought from the architects. The University Counsel states that in his opinion the University should resist the claim, and recommends that he be authorized to take such steps as are necessary or appropriate, including the employment of special counsel, to defend the University in this proceeding. I concur. O n m o t i o n of M r . S w a i n , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d .