By Khadeeja Safdar | Wall Street Journal
Two of Paul Newman’s daughters sued the Newman’s Own Foundation, saying its leaders have strayed from their late father’s wishes and limited their involvement in its charitable giving.
The Hollywood star created the Newman’s Own Foundation in 2005, three years before his death. The nonprofit controls a food company called Newman’s Own Inc. that funds the private foundation with its after-tax profits. The foundation had assets valued at about $234 million at the end of 2020, according to federal tax filings.
The foundation’s board of directors in 2020 reduced the yearly amount that Mr. Newman’s daughters each receive to direct charitable donations — from $400,000 to $200,000 — a move they said is a violation of Mr. Newman’s wishes, according to the lawsuit filed Tuesday by Elinor “Nell” Newman and Susan Newman in a Connecticut state court.
The lawsuit seeks $1.6 million in damages to be donated to the charities of the daughters’ choosing, along with a judgment that requires the foundation to abide by Mr. Newman’s wishes. The daughters aren’t members of the foundation’s board of directors.
“This is a classic example of the divergence of interests when dealing with a family legacy and how it is managed after the passing of the founder. Many estates are unnecessarily diminished by fighting amongst the beneficiaries and stakeholders based on ambiguous or unclear plans. Minimize the risk of similar disputes and keep your estate assets intact by having a clear estate plan.”
Tony Freeman, Rose Law Group senior counsel and litigator
