Throughout the summer, the lawsuit which Wittenberg’s Board of Directors filed against their former law — Martin, Browne, Harper and Hull (Martin Browne) and two of the firm’s partners — has moved through the Clark County Court of Common Pleas. Last year, Wittenberg alleged in a complaint that the firm — along with Glenn Collier and David Weaver — breached its fiduciary duties to Wittenberg. The university’s complaint alleged that Weaver and Collier withheld information regarding the use of endowment funds in the 2010 purchase of the Springfield Museum of Art, among other property acquisitions. The complaint attributes the alleged malfeasance to conflict of interest due the positions Weaver and Collier held on the boards of the Turner Foundation and the Springfield Museum of Art, among other community institutions. The complaint also alleged that Martin Browne had failed to return files to Wittenberg at the end of its tenure as general counsel.
On May 11, the university filed an amended complaint which specified the allegations. The amended complaint alleged that Martin Browne violated “the Statement of Investment Policy,” which the firm helped draft in 2010. According to the complaint, the Investment Policy required that those with conflicts of interest must disclose the conflict in writing before the investment committee began any discussion or consideration of investment. The Investment Policy also required board approval for the use of endowment funds.
The amended complaint states that the university has discovered that the endowment’s real estate fund was “loaned” to the university during the purchase of the art museum without board approval in violation of the investment policy. The claim goes on to say that the defendants were aware that the “loan” was never intended to be repaid. The claim goes on to say that such events occurred multiple times.
On June 8, Martin Browne filed a response which disputed the veracity of the most direct assertions of Wittenberg’s complaint, including the firm’s involvement in the purchase of the Springfield Museum of Art, and sought to have the suit dismissed on grounds that statute of limitations had been passed. The response mounts 23 separate defenses and includes as evidence emails which reveal a tense relationship between the university’s most recent administration. In a 2013 email, Collier wrote former Chairman of the Board David Boyle, and he said that the law firm felt its fiduciary duty lay ultimately with the Board rather than the President. The email went on to read “. . . I know that Dave made this observation during an earlier meeting with Laurie. My understanding is that Laurie did not appreciate this position. She may have thought that we serve as a ‘staff’ legal counsel who would report and owe a duty of loyalty to the President.” The response insinuates that this disagreement led the university to turn away from the law firm some time in 2013, while maintaining its official status as general counsel into 2014.
Furthermore, in an attempt to rebut th