A Beautiful Result

The New York Appellate Division for the First Judicial Department has affirmed the dismissal of claims brought by Beautiful Mind auther Sylvia Nasar against Columbia University.

Plaintiff has no standing to sue for money damages arising from a breach of the grant agreement since the funds belong entirely to defendant (see  N-PCL 513). She does not fall within the “special interest” exception to the general rule (see Alco Gravure, Inc. v Knapp Found. , 64 NY2d 458, 465-466 [1985]). Her attempt to have the bulk of the corpus paid to her personally places her in conflict with future, undetermined beneficiaries of the fund (see id.Citizens Defending Libraries v Marx , 2014 NY Slip Op 31449[U] [Sup Ct, NY County May 30, 2014]). Nor is plaintiff a third-party beneficiary of the grant agreement (see Oursler v Women’s Interart Ctr. , 170 AD2d 407 [1st Dept 1991]). The agreement vests full discretion to choose the holder of the endowed chair, and to spend monies from the fund, in defendant. By the express terms of the agreement, disputes or changes to the grant are to be decided by the donor and defendant. Thus, there is no indication in the grant agreement that plaintiff is an intended rather than an incidental beneficiary.

As plaintiff has no interest in the funds provided by the grant agreement, she cannot state a cause of action for conversion or unjust enrichment.

(Mike Frisch)