Breach of Gift Condition?

Louisa Lippitt died in 1912 leaving $4,000 in her will to the Rhode Island Hospital conditioned on the money being used to provide a permanent free bed for needy patients as selected by Children’s Friend and Service (the successor charity to the one Louisa indicated in her will).

It now appears that the free bed no longer exists.  Accordingly, Children’s Friend and Service has filed suit.

Here is some additional information from Eric Tucker, Charity sues R.I. hospital over free bed donated century ago, Townhall.com, April 19, 2008:

“It just seems illogical to me that a quote-unquote ‘permanent free bed,’ which by its very name suggests that it is to last forever, can somehow not last forever,” said Mark Swirbalus, a lawyer for the organization.

If it had been modestly invested, Swirbalus said, Lippitt’s donation could be worth about $1.5 million today. * * *

Hospital spokeswoman Gail Carvelli said the money donated for free beds was put into a restricted account that pays for charity care, but she could not say how much was in that account or how much of its funds are spent annually.

Swirbalus said Children’s Friend does not expect the hospital to set aside a bed that would be available only to the charity’s clients. Rather, the charity wants to ensure its clients receive free care in whatever bed they’re treated.