Repository: UIHistories Project: Board of Trustees Minutes - 1954 [PAGE 1164]

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1953]

UNIVERSITY OF ILLINOIS

Il6l

AUTHORITY FOR COMPROMISE SETTLEMENT OF SUIT AGAINST UNITED STATES GOVERNMENT UNDER CONTRACT NO. W - 4 9 - 0 0 7 - M D - 3 8 8 (2) At its July 25, 1953, meeting the Board of Trustees authorized the University's attorneys to attempt to negotiate a settlement of the above suit upon the basis of allowing the government a reduction of not more than 15 per cent of the disputed portion of the University's claim. Although the attorney handling the suit for the Department of Justice subsequently recommended settlement within that limit, his superiors refused to approve his recommendation and it now appears that the suit can not be settled upon the basis heretofore authorized. However, attorneys in the Department of Justice having the authority to accept offers in compromise not in excess of $5,000 have informally advised the University's attorneys that an offer of settlement in that sum will be accepted if made by the University. The full amount of the University's claim is $6,868.40 of which $361.90 is not in dispute. Settlement upon the $5,000 basis will result in recovery of the full amount of the undisputed portion of the claim and approximately 71 per cent of the disputed portion. The Washington attorneys who are handling the suit for the University have agreed to make a sufficient reduction in the amount of their contingent fee to enable the University to realize a net recovery of the entire amount of the undisputed portion of the claim and 50 per cent of the disputed portion if it is settled upon the $5,000 basis. While those attorneys believe that the University's entire claim is meritorious, they, for the same reasons which prompted them to recommend settlement upon the basis heretofore authorized by the Board of Trustees, believe it advisable and recommend that the University accept $5,000 in full settlement of the entire claim. The Legal Counsel and the Acting Comptroller recommend that the suit be settled, if possible, upon this basis, and that the University's attorneys be authorized to make an offer of settlement to the government in the sum of $5,000. I reluctantly concur, not because I consider it just and equitable but in order to expedite settlement and avoid the uncertainty of litigation.

On motion of Mr. Johnston, this compromise settlement was authorized.

REPORT OF COMMITTEE ON BUILDINGS AND GROUNDS Mr. Megran, Chairman of the Committee on Buildings and Grounds, reported on the present status of negotiations with representatives of the Wesley Foundation of Urbana, Illinois, for the purchase of the Foundation's property in the block bounded by Green Street on the north, Goodwin Avenue on the east, Illinois Street on the south, and Mathews Avenue on the west, in the city of Urbana, which the University is seeking to acquire as a building site. Mr. Megran read a proposal made by the Foundation, a copy of which has been filed with the Secretary of the Board. The proposal, which includes the fixing of a new boundary line and prices asked for the various parcels of property, was discussed and the alternatives of acceptance, rejection, and possibility of a compromise were duly considered. It is the sense of the Committee on Buildings and Grounds, in which the other Trustees concur, that if the University and the Foundation agree on a purchase price the University should also agree to the Foundation's proposal that any University building constructed in this area shall be at least 75 feet south of the east-west center line of the block.

Formal action on the Foundation proposal was deferred until later in this meeting.

ESTATE OF GEORGE A. MILLER (3) The President of the University and the Legal Counsel reported to the Board on conferences with the Executor and Attorney for the George A. Miller Estate, preliminary to the conveyance to the University of all assets of the Estate. The Board was informed of the official action and other steps to be taken in accepting these assets. Mr. Megran, Chairman of the Finance Committee, stated that his Committee would have a report to make later in the meeting regarding the investment of the Estate funds.