HARTFORD, Conn. — A new lawsuit has revealed a deep rift between Paul Newman’s two daughters and the late actor’s charitable foundation, which is funded by profits from his Newman’s Own food and beverage line.
The daughters, Susan Kendall Newman and Nell Newman, allege that Newman’s Own Foundation improperly reduced the required contributions to their own charities from $400,000 apiece per year to $200,000 each per year.
On Tuesday, they filed a lawsuit in state court in Stamford, Connecticut, seeking $1.6 million in damages, which will be distributed by their foundation to charity.
The daughters say their father, who created Newman’s Own Foundation three years before his death in 2008, allowed the foundation to use his name and likeness, but only on several conditions, including paying each of his two daughters’ foundations $400,000 a year .
Susan Kendall Newman, who lives in Oregon, and Nell Newman, of California, worry that the foundation is setting the stage to completely strip them of their right to influence how a portion of profits from Newman’s Own products are donated to charities. They also accused the foundation of being “contrary” to their father’s wishes and intentions over the years.
“No one should feel that the legacy of a deceased loved one is being dishonored in such a way that Newman’s own foundation is ignoring Paul Newman’s daughters,” Andy Lee, a New York attorney for the daughters, said in a statement. .
“This lawsuit does not seek personal compensation for Mr. Newman’s daughters, but simply seeks to hold (Newman’s own foundation) accountable to the charities they have underpaid in recent years and ensure they receive increased levels of support in the future, according to with best wishes from Mr. Newman,” he said.
Newman’s Own Foundation has not yet filed a response to the lawsuit, but has released a statement.
“Charity-related best practice does not allow for continuous funding to be established for anyone, including Nell and Susan Newman,” the statement said. “A baseless lawsuit based on this misguided desire will only divert money from those who benefit from Paul Newman’s generosity.”
The foundation added, “While we expect to continue to solicit referrals from the Newman family for worthy organizations, our funding decisions are made each year and will continue to reflect Paul Newman’s clear purpose and our responsibility for best practices in private endowment management.”
Paul Newman, who lived in Westport with his wife, actress Joan Woodward, created Newman’s Own in 1982, with all profits going to charity. Today, the product line includes frozen pizza, salsa, salad dressings and pasta sauces, as well as dog food and pet treats.
In his will, Paul Newman left his assets to his wife and Newman’s own foundation.
Newman’s Own, a product company, is a subsidiary of the Newman’s Own Foundation, a non-profit organization. The foundation says more than $570 million has been given to thousands of charities since 1982.
According to its 2020 tax filing, the foundation received more than $24 million in revenue and paid out $11.5 million in contributions, gifts and grants. Operating and administrative expenses totaled nearly $4.5 million.
According to his daughters’ lawsuit, Newman’s Own Foundation wrote to them just four days after their father’s death, saying it reserved the right to stop distributing funds to charities named by the daughters. The lawsuit says that goes against Paul Newman’s clear instructions to the foundation.
https://www.indianagazette.com/news/paul-newmans-daughters-sue-late-actors-charity-foundation/article_e45955e0-1a90-5251-a7bc-ed9ff0463ba4.html
