In
Chu v. Legion of Christ Inc., (D RI, Jan. 13, 2014), a Rhode Island federal magistrate judge recommended that defendant's motion for summary judgment be denied in a lawsuit claiming that the scandal-ridden Catholic organization, Legion of Christ, used fraud and undue influence to induce college professor Dr. James Boa-Teh Chu to name the Legion as beneficiary of his retirement annuities. The court held that under Rhode Island law the executor of the estate, Chu's son Paul, has standing to bring the suit since if the gift fails the assets would revert to the estate. The court also rejected the claim that the executor lacks standing because Dr. Chu would have left his assets to another Catholic charity if they were not left to the Legion. The magistrate concluded:
All in all, through this muddle, one thing clearly emerges: the record in this case has more than sufficient evidence from which a fact finder could conclude that, absent the influence of The Legion, Dr. Chu’s beneficiary for some or all of his annuities would not necessarily have been another Catholic charity. Accordingly, I find that there is a genuine fact dispute regarding Dr. Chu’s charitable intent.
Examiner reports on the decision.
UPDATE: The federal district court issued an order on Feb. 26, 2014 adopting the magistrate's report and recommendation. (
AP).
