Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 566]

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UNIVERSITY OF ILLINOIS

663

legal steps should be taken to protect the interests of the legatees, including the potential and unknown beneficiaries of the scholarship trust. A conference to discuss this matter was held in Decatur, Illinois, on March 29 at which the following were present: Mr. Ralph J. Monroe of Monroe and McGaughey, Decatur, Counsel for the Millikin Trust Company, the Illinois Executor named in the will and trustee of the trust provided therein; Mr. Charles Ruedi, Chief Trust Officer of the Millikin Trust Company; Mr. W. H . Parr, Jr. of P a r r , P a r r , and Parr, Lebanon, Indiana, representing Miss Ruth Alice Hundley, the Indiana Executor and one of the principal legatees; Dr. Thorne Deuel, Director of the Illinois State Museum; Mr. Elmer Nafziger of the firm of Stevens and Herndon, Springfield, who represented the Attorney General of Illinois in connection with the interests of the State Museum; and Mr. Ralph F . Lesemann, representing the University of Illinois. Those primarily interested in establishing the validity of the will are Miss Hundley (the Indiana Executor) and the University of Illinois, the latter for the protection of the interests of potential beneficiaries — young men and young women from farm homes in Illinois who would receive financial assistance in securing a college education. On the other hand, since the University will receive no direct benefits, it would not be justified in paying a substantial amount from its own funds in an attempt to establish validity of the will. Miss Hundley is financially unable to make a substantial contribution to the expense of the litigation unless she receives what is bequeathed and devised to her in the will. For these reasons, it is obvious that attorneys should be employed on a contingent fee basis with beneficiaries providing only the funds needed for defraying expenses of litigation other than legal fees. It is estimated that the immediate expenses will be between $1,200 and $1,500 although they may run higher, depending on progress of the trial and whether or not an appeal is taken by either party from a verdict and judgment adverse to it. It was agreed by the participants in the conference, subject to approval of those for whom they are acting, that Miss Hundley, the principal beneficiary, should contribute one-third of the funds for the initial expenses; the University, one-third; the Illinois State Museum, one-sixth; and the Millikin Trust Company, one-sixth. This would require an initial expenditure by the University of $400 to $500 which should be made available not later than May I. Representatives of the law firms of Monroe and McGaughey and Parr, Parr, and P a r r stated that their firms will handle all the litigation necessary, and will act as attorneys for the executors in connection with the administration of the estate, for a contingent fee of 25 per cent of the value of the gross estate (excluding the value of the personal property bequeathed to the Illinois State Museum), as valued in Indiana and Illinois inheritance tax and in federal estate tax returns, subject to a maximum fee of $50,000 if only one trial proves necessary, plus an additional $5,000 if an appeal has to be taken from a verdict and judgment adverse to the validity of the will, plus another $5,000 for a second trial of the case if necessitated by failure of the jury in the first trial to reach a verdict or by an appeal resulting in a second trial being ordered. The representatives of the two firms agreed that the legal fees may be paid out of income, provided the payments can be made within four years after admission of the will to probate, so that it would not be necessary to sell any of the property to pay fees. Miss Hundley will contribute to these fees in proportion to her share of the estate. In the opinion of Mr. Ralph F . Lesemann, University Counsel-elect, this litigation should not be handled by the University's Legal Counsel. First, the University is only one of the parties interested. Second, if the University Counsel assumed charge of the litigation, it would be necessary for him to employ Parr, Parr, and Parr, or some other counsel in Indiana, to assist in preparing for the trial since much of the work could not be done by any Illinois lawyer without local assistance in Indiana. Third, if the University Counsel were to assume active charge, he would need to devote much time and work to it and the University would, therefore, incur more expenses payable from its funds than would be justified in view of the nature of its interest. H e recommends that the Board of Trustees authorize payment of an initial contribution of $400 toward the expenses of this litigation other than attorneys' fees. No formal action by the Board need be