Georgia O'Keeffe Foundation (Museum) v. Fisk University

312 S.W.3d 1, 2009 Tenn. App. LEXIS 434, 2009 WL 2047376
CourtCourt of Appeals of Tennessee
DecidedJuly 14, 2009
DocketM2008-00723-COA-R3-CV
StatusPublished
Cited by8 cases

This text of 312 S.W.3d 1 (Georgia O'Keeffe Foundation (Museum) v. Fisk University) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgia O'Keeffe Foundation (Museum) v. Fisk University, 312 S.W.3d 1, 2009 Tenn. App. LEXIS 434, 2009 WL 2047376 (Tenn. Ct. App. 2009).

Opinions

[4]*4OPINION

FRANK G. CLEMENT, JR., J.,

in which PATRICIA J. COTTRELL, P.J., M.S., joined. RICHARD H. DINKINS, J., also joined and filed a concurring opinion.

At issue in this appeal are the respective rights of three parties concerning charitable gifts of 101 pieces of art given, subject to conditions, to Fisk University in the late 1940s and early 1950s. The collection has an estimated present value in excess of $60 million. Four of the pieces, including the painting Radiator Building — Night, New York, were the property of Georgia O’Keeffe and given to the University by Ms. O’Keeffe. The other ninety-seven pieces were part of a much larger collection formerly owned by Alfred Stieglitz, Georgia O’Keeffe’s late husband. The ninety-seven pieces were gifted to the University by Ms. O’Keeffe as executrix of the estate and/or as the owner of a life estate in the ninety-seven pieces. All 101 pieces were charitable, conditional gifts that were subject to several restrictions, two of which are at issue here; the pieces could not be sold and the various pieces of art were to be displayed at Fisk University as one collection. These proceedings began when Fisk University filed an ex parte declaratory judgment action seeking permission to sell two valuable pieces of the collection because it could no longer afford to maintain the collection pursuant to the conditions imposed 50 years earlier. Thereafter, the Georgia O’Keeffe Museum intervened, followed by the Tennessee Attorney General. The O’Keeffe Museum contended that any sale of the collection violated the conditions of the gifts and should result in the entire collection reverting to the Museum as the successor in interest to Ms. O’Keeffe’s estate. Later on, an offer by the Crystal Bridges Museum of Benton, Arkansas, was presented to the court pursuant to which the Crystal Bridges Museum would pay Fisk University $30 million to acquire a one-half interest in the entire collection and the right to exhibit the collection six months each year. The trial court determined that the Georgia O’Keeffe Museum had standing to contest the sale of the pieces gifted by Georgia O’Keeffe and the Stieglitz estate, that the doctrine of cy pres was not an available remedy to Fisk University because the gifts were the result of a specific charitable intent, not a general charitable intent, and the petition to sell the collection was denied and dismissed. On appeal, we have determined the Georgia O’Keeffe Museum lacks standing to participate in this action and therefore dismiss its intervening petition and relief sought. Further, we have determined that the trial court erred in finding that Ms. O’Keeffe lacked general charitable intent. Accordingly, we reinstate the University’s cy pres petition and remand for the trial court to determine whether cy pres relief is available and, if so, to fashion the appropriate relief.

The issues in this appeal pertain to charitable, conditional gifts and whether the recipient of the conditional gifts is entitled to relief under the cy pres doctrine.

In 2005, Fisk University commenced this action by filing an ex parte Complaint for Declaratory Judgment, whereby the University sought permission to sell two valuable paintings from the Alfred Stieglitz Collection at Fisk University, Radiator Building — Night, New York by Georgia O’Keeffe (hereinafter “Radiator Building”) and Painting No. 3 by Marsden Hartley. The stated purpose of the proposed sale was to generate funds for the University’s “business plan” to restore its endowment, improve its mathematics, biology, and business administration departments, and build a new science building. The art had been given to the University [5]*5subject to certain conditions. One of the conditions was that none of the art given to the University would be sold or exchanged.

While the case was pending, the University’s request for relief morphed into a request for the approval of a “settlement agreement” with the Georgia O’Keeffe Museum (hereinafter the “O’Keeffe Museum”) to sell Radiator Building to the museum for $7,500,000. Before that request could be acted upon, a “settlement agreement” with the Crystal Bridges — Museum of American Art, Inc. of Benton, Arkansas (hereinafter “Crystal Bridges”) was presented to the court whereby the University would sell a 50% undivided interest in the entire Collection for $30 million. Pursuant to the proposed agreement, the University and Crystal Bridges would each have the right to display the Collection at their respective facilities six months of each year. The trial court denied the University’s request, finding the University was not entitled to relief under the cy pres doctrine. This appeal followed.

To start at the very beginning, we must look back to July 13, 1946. On that day, Alfred Stieglitz, a pioneering photographer, collector of American modern art, and husband of Georgia O’Keeffe, died. Mr. Stieglitz’s estate included approximately 900 works of art, including a large number of photographs. Mr. Stieglitz’s Last Will and Testament was admitted to probate in the Surrogate’s Court of New York County, New York, on September 13, 1946, at which time his widow, Georgia O’Keeffe, was appointed Executrix of the estate. Provisions relevant to these proceedings appeared in Articles SECOND and THIRD of the will. Article SECOND provided:

My said wife shall also have the right, during her lifetime, to transfer said property or any part thereof, without receiving any consideration, to one or more corporations, such as are described in Article THIRD of this Will, and as she may select or cause to be incorporated.

Article THIRD stated that any of Mr. Stieglitz’s photographs and art works not disposed of by Ms. O’Keeffe during her lifetime would be transferred to nonprofit corporations under arrangements allowing public access to promote the study of art. The provision read as follows:

Upon the death of my wife ... I give and bequeath so much of my entire collection of photographs (including those produced by me) and other works of art as shall not have been disposed of by my said wife to one or more corporations ... such property to be received and held by such corporation or corporations under such arrangements as will assure to the public, under reasonable, regulations, access thereto to promote the study of art, but no corporation shall be entitled to share in this bequest any part of whose net earnings shall inure to the benefit of any private stockholder or individual or any substantial part of whose activities shall be carrying on propaganda, or otherwise attempting to influence legislation.

In order to facilitate the transfer of art, the will authorized his executors to transfer cash and securities from his estate to the chosen nonprofit corporations to defray the expenses of managing and preserving the artworks.

At the time of his death, Mr. Stieglitz had a surviving daughter who was disabled. A special guardian appointed to represent the daughter during the probate of Mr. Stieglitz’s estate raised an issue suggesting that the will could violate Section 17 of the Decedent’s Estate Law, which prohibited a testator from making charitable gifts of a value greater than [6]*650% of the entire estate if the testator was survived by a spouse or child.

To resolve the possible violation of Section 17, Ms.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
312 S.W.3d 1, 2009 Tenn. App. LEXIS 434, 2009 WL 2047376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-okeeffe-foundation-museum-v-fisk-university-tennctapp-2009.