Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 492]

EXTRACTED TEXT FROM PAGE:

1977]

UNIVERSITY OF ILLINOIS

479

Shepherd, Mr. Velasquez; no, none; absent, Mr. Neal, Governor T h o m p son. Pending Litigation in Workmen's Compensation and Related Matters

(19) As a result of increased benefits and coverage provided by the state of Illinois through amendments to the Workmen's Compensation Act and the Occupational Diseases Act, the volume of claims initiated by University employees before the Illinois Industrial Commission has increased substantially in recent years, particularly at the Chicago campuses. Presently, more than seventy claims filed by the employees of the Chicago campuses are pending. In the past, the University has been represented before the Illinois Industrial Commission by the university counsel's office. If such arrangements are to be continued, additional staff will be necessary. The university counsel has reported that matters in the field of workmen's compensation and industrial diseases are varied, need special attention, and would be facilitated by the assistance of attorneys who have special expertise in the field. In his view, it would be economical to engage special counsel located in Chicago on a continuing basis to provide assistance as needed. After a suitable experimental period, the economies of such arrangements would be evaluated, and other procedures will be recommended if indicated. Accordingly, he has recommended that he be authorized to engage the law firm of Seyfarth, Shaw, Fairweather, and Geraldson of Chicago, Illinois, to act as special counsel in the foregoing matters at their customary hourly rates for such services. The firm has previously represented the University, and the services have been satisfactory. I concur.

T h e student advisory vote was: Aye, Miss Conlon, Mr. Overstreet, Miss Winter; no, none. O n motion of Mr. Livingston, authority was given as recommended by die following vote: Aye, Mr. Forsyth, Mr. H a h n , Mr. Howard, Mr. Lenz, Mr. Livingston, Mrs. Rader, Mrs. Shepherd, Mr. Velasquez; no, none; absent, Mr. Neal, Governor Thompson. Construction of Will of Cecelia B. Carman

(20) Cecelia B. Carman died October 5, 1972, leaving a will dated April 22, 1970, which created a trust of her residuary estate. Under the terms of the trust, income up to certain maximum amounts is paid to certain persons now living, and at their deaths the remainder of the trust is to be distributed to the University to be used "to establish an O. S. Carman Scholarship Fund in the College of Agriculture." Preliminary investigation indicates that it was the intention of Cecelia B. Carman to create a testamentary trust which was an annuity trust under the Internal Revenue Code so as to qualify the gift to the University for the charitable deduction under the federal estate tax to eliminate income taxes on the trust during the period prior to ultimate distribution to the University. A court proceeding will be required to construe and revise the will to comport with the testator's intention. The university counsel has recommended that he be authorized to take such steps as are necessary or appropriate, including the employment of special counsel, to obtain a construction and revision of the Cecelia B. Carman will by the courts in order to conform the same to the testator's intention. I concur.