Obermeyer v. Bank Of America, N.A.

140 S.W.3d 18 (2004)

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Nature of the Case

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Facts

In 1955, Washington University had a dental school and a Dental Alumni Development Fund that existed to benefit the school. In 1955, Dr. Kimbrough’s estate plan included a trust to provide benefits for his niece and nephews during their lifetimes after Dr. Kimbrough's death. Upon the death of the survivor of the niece and nephews, the trust estate would be 'paid over and distributed free of trust unto Washington University … for the exclusive use and benefit of its Dental Alumni Development Fund.' The trust did not contain a reversionary provision providing for an alternate disposition of the trust estate. Dr. Kimbrough died in 1963. Washington University discontinued the Dental Alumni Development Fund in 1965. It closed its dental school in 1991. The trust paid benefits to the niece and nephews until 2000 when the last of the three died. This triggered the clause that the trust estate be paid to Washington University for the exclusive use and benefit of the Dental Alumni Development Fund. Ps, the great, great-nieces of Dr. Kimbrough, brought this action for declaratory judgment and construction of Dr. Kimbrough's inter vivos trust, which was valued at approximately $2.8 million in 2000. Ds and Ps agreed that there was a charitable trust and that it was impossible or impracticable to carry out the charitable purpose in the trust because the Dental Alumni Development Fund no longer exists. Ds claim the trust was created with general charitable intent and that, under the cy pres doctrine, the funds should be applied to Washington University for dental-related endeavors to most nearly carry out Dr. Kimbrough's charitable intent. The court held that Dr. Kimbrough established the trust with a general charitable intent and applied the cy pres doctrine. The court directed the University to use the funds to support two dental-related professorships in the name of Dr. Kimbrough. Ps appealed.