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Foundation Giving

Museum Trustee Sued Over Pledge

January 15, 1998 | Read Time: 1 minute

The Museum of Contemporary Art, in Chicago, last month sued one of its trustees for failing to fulfill a $5-million pledge.

In a suit filed in the Circuit Court of Cook County, the museum alleged that Paul Oliver-Hoffmann, then chairman of the museum’s Board of Trustees, promised in November 1990 to give the money as a lead gift in a fund-raising drive seeking $55-million. Under terms of the pledge agreement, Mr. Oliver-Hoffmann was supposed to pay off the pledge by the end of June1997, but the museum said that it has not received any payments toward the pledge.

The fund-raising campaign was intended to provide an endowment to cover costs associated with moving into the museum’s new home, which opened in 1996. The museum operates on a $12.8-million budget and employs 90 full-time staff members.

Museum officials said the case against Mr. Oliver-Hoffmann marked the first time the institution has had to seek redress in the courts. “While we are reluctant to pursue this course of action, the M.C.A. Board of Trustees has a responsibility to the museum, its supporters, and to the community at large,” said Penny Pritzker, chairman of the board. “We have always expected to receive this pledge, and have relied on its payment in planning our future.”

Mr. Oliver-Hoffmann, reached through representatives of the Oliver-Hoffmann Corporation, in Naperville, Ill., declined to comment.