Repository: UIHistories Project: Board of Trustees Minutes - 1954 [PAGE 6]

EXTRACTED TEXT FROM PAGE:

1952]

UNIVERSITY OF ILLINOIS

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settlement on behalf of the Illinois State Museum, and also on behalf of the beneficiaries of the charitable trust created by the will, if it is approved by the Board of Trustees of the University. If the proposed settlement is made, Miss Hundley, the principal beneficiary under the will other than those who will eventually receive the scholarships at the University contemplated by its provisions, is willing to make a fair contribution to it, the amount of which will be determined by an agreement to be entered into between her counsel and the University Legal Counsel. The University will not be required to make any cash contribution to the settlement, but the balance of the amount paid in settlement remaining after Miss Hundley's contribution thereto, will be paid from the income from the property of the trust created by the will, or from the corpus of the trust if the income now available proves insufficient. Because of the expense of continuance of this involved and costly litigation in two states and the uncertainty as to its outcome if it is continued, the University Legal Counsel joins in the recommendation of the attorneys for the executors that the proposed settlement be made and requests that he be authorized to enter into it on behalf of the Board of Trustees and the University, the details to be subject to the approval of the President of the University, and that the Comptroller and the Secretary of the Board of Trustees be authorized to execute any documents on behalf of the University and its Board of Trustees which may be required to effect and complete the settlement. I concur. On motion of M r . Johnston, the Legal Counsel was authorized to enter into a settlement of this litigation, as recommended.

CONTROVERSY W I T H CONTRACT OF PATRICK WARREN CONSTRUCTION COMPANY

At the request of President Stoddard, the Legal Counsel reported on the status of certain controversies which the University is having with the Patrick Warren Construction Company with respect to the contract for the construction of the addition to the Research and Educational Hospitals. The Legal Counsel stated that every effort will be made to resolve the differences through conferences between representatives of the Company and the University, but that the controversies may result in litigation. The Legal Counsel further reported that claims are being asserted against the University by other prime contractors for reimbursement for additional costs incurred as a result of the delay in completion of the building. He also advised, and the Comptroller and the Director of the Physical Plant Department concur, that it would be highly desirable and advantageous to employ special counsel in Chicago to represent the University in these matters.

MINUTES APPROVED

The Secretary presented the minutes of the meetings of April 24 and May 26, 1952, press proof copies of which were sent to all members of the Board in advance of this meeting. The Secretary also stated that it is desirable to have approval of the minutes of the meeting of the Board of Trustees held on June 19, 1952, prior to September, so that printing of the transactions of the Board of Trustees covering the period of July 1, 1950, through June 30, 1952, will be expedited. Press proof copies of the June minutes will be sent to the Trustees in the near future. The Secretary requests that approval be authorized, subject to any corrections or amendments