Repository: UIHistories Project: Board of Trustees Minutes - 1970 [PAGE 705]

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1969]

UNIVERSITY OF ILLINOIS

705

Mr. Grimes nominated Mr. Swain. Mr. Swain was unanimously elected President Pro Tempore for the December meeting.

RECESS FOR BUILDINGS AND GROUNDS COMMITTEE MEETING

The Board recessed and the Committee on Buildings and Grounds convened. RECESS AND EXECUTIVE SESSION President Hughes announced that an executive session had been requested and was being ordered for consideration of property acquisition and pending litigation. The Board considered the following business presented by the President of the University.

ACQUISITION OF 1 0 0 7 WEST ILLINOIS STREET. URBANA (24) The Board of Trustees on April 17, 1968, authorized the acquisition of the property at 1007 West Illinois Street, Urbana, through condemnation proceedings and the use of funds available in state capital appropriations to the University. The condemnation suit has been completed in the Circuit Court of Champaign County, Illinois. The jury award of $40,000 is within the range of the testimony of expert witnesses at the trial. The President of the University, with the concurrence of appropriate administrative officers, recommends that the University accept the jury award and pay the same in accordance with the judgment order. Funds are available in state capital appropriations to the University and have been released by the Governor.

On motion of Mr. Swain, this recommendation was approved by the following vote: Aye, Mr. Clement, Mr. Grimes, Mr. Hahn, Mr. Hughes, Mr. Steger, Mr. Swain; no, none; absent, Mr. Jones, Governor Ogilvie, Mr. Page, Mr. Stone.

SETTLEMENT OF PENDING LITIGATION (25) At its meeting on September 20, 1967, the Board of Trustees authorized the University Counsel to take such steps as were necessary or appropriate, including the employment of special counsel, to defend the University and its employees in a suit filed in the Circuit Court of Cook County (67 L 13117) by Howard S. Chapman, one of the passengers in the University plane which crashed November 28, 1966. Subsequently, Mr. Chapman also filed suit on the same transaction in the Illinois Court of Claims (No. 5522) and the Court of Claims continued the case generally pending disposition of the suit previously filed in the Circuit Court of Cook County. Mr. Chapman also filed suit in the United States District Court for the Northern District of Illinois (Civil Action No. 66 C 2335) against the United States of America. In that proceeding the United States filed a third party complaint against the University seeking to require the University to indemnify the United States or, alternatively, to contribute a pro rata share of any liability assessed against the United States. At its meeting on February 21, 1968, the University Counsel was authorized to take necessary and appropriate steps, including the employment of special counsel, to defend the University in the federal proceedings. The University filed a motion to dismiss the third party complaint filed by the United States in the Federal Court and the motion was granted. Settlement negotiations with respect to the Circuit Court of Cook County and Court of Claims cases have proceeded and have resulted in an offer from the plaintiff to settle both cases for a total of $25,000. The evidence with respect to the possible liability of the University is ambiguous and conflicting in several important respects. Substantial additional expenses would be incurred if the matters were litigated to final disposition. The University Counsel and special counsel employed to assist him in representing the University in these matters are of the opinion that while the University has some chance to sustain its defense in these cases, the outcome of the suits must be considered as doubtful. Special counsel has recommended settlement for the amount offered by Mr. Chapman,