Paul Newman’s Daughters Are Suing Late Actor’s Charity

The lawsuit, which exposes a disagreement between Paul Newman’s two daughters and the late actor’s charity, alleges that its leaders are betraying Newman’s instructions to keep his family closely involved in the organization.

They allege that Newman’s Own Foundation improperly reduced mandatory contributions to entities controlled by daughters Susan Kendall Newman and Nell Newman from $400,000 to $200,000 a year, according to the lawsuit filed Tuesday in Connecticut state court. They say this is the first step towards the total eviction of his family, which is being financed by his father’s public resources.

“Newman’s Own Foundation has lost its way and deviated from its mission to preserve and honor the legacy of Paul Newman,” the complaint reads. “The years since Mr. Newman’s death have been marked by a long and consistent pattern of disregard for Mr. Newman’s specific intentions and directions, accompanied by mismanagement, scandal and questionable practices.”

The Oscar-winning actor and director created the Newman’s Own Foundation in 2005. The non-profit organization oversees and funds the food and beverage company Newman’s Own, which uses the actor’s name and likeness to sell salad dressings, pasta sauces and other products. The foundation reported $24.6 million in revenue in 2020, according to tax returns.

Under the settlement, the daughters claimed that their father conditioned their participation in the foundation. They are seeking $1.6 million in damages for charities of their choice and an order compelling the foundation to follow Newman’s wishes.

The board’s philanthropic decisions change each year and it needs to make the most of its limited resources, the foundation said in a statement. “Best practices around charities do not allow permanent funds to be established for anyone, including Nellie and Susan Newman,” the statement said. “A frivolous lawsuit based on this misguided desire will only divert money from those who benefit from Paul Newman’s generosity.” While we look forward to continuing to seek recommendations from the Newman family for worthy organizations, our funding decisions are made annually and will continue to reflect Paul Newman’s clear purpose and commitment to best practice in the management of private foundations.

The daughters are not board members of the foundation.

In creating the foundation, Newman outlined specific plans for structuring it on a living background. A 2005 document he shared with his advisers and daughters detailed that Newman’s Own would pay royalties to its parent company for the use of the rights to its name and likeness, according to the complaint. The foundation, in turn, distributed funds to the daughters’ funds to be donated to charities of their choice.

But the suit alleges that Robert Forrester, a former adviser to Newman who eventually became CEO of Newman’s Own and president of the foundation, and Brian Murphy, Newman’s longtime business manager, manipulated the actor when his mental capacity waned. board at will. . .

“It has been clear for some time that Mr. Newman was unable to serve as trustee of the Living Trust,” according to the complaint, which follows. Instead of informing the children of Mr. Newman about his right and the clear direction of his priest that they debiann to name cofideicomisarios with Forrester and Murphy, Forrester and Murphy unilaterally took control of the affairs of Mr. Newman with respect to NON F. and with respect to his estate planning decisions.”

According to the lawsuit, Newman’s family was “shocked” when his will was read because it fell far short of what had been reported prior to the actor’s death. They were threatened with disinheritance if they protested.

While referring to Newman’s living trust, the complaint does not cite the foundation’s administrative documents, which describe whether the foundation is required to distribute $400,000 annually to its daughters.

Paul Roy, an estate planning attorney for Withers who is not involved in the matter, says THR That Newman’s desires for a living fund do not limit how the fund operates. “It seems to me that Paul has instructed trustees to consult with family members when making distribution decisions, but that is not necessarily the legal right to decide where distribution goes,” he noted. “It makes sense because they are not directors.”

The board removed Forrester as CEO in 2019 amid accusations of creating an unhealthy work environment. The daughters’ lawsuit also alleges that the foundation improperly paid for her and her husband’s first-class flights and expensive hotel stays.