Sep 23, 2024

Paul Newman’s Daughters Sue ‘Newman’s Own Foundation’ Alleging Violations of Conditions Made by Their Father

by Diane Lilli | Aug 29, 2022
Susan and Nell Newman at a charity event Photo Source: Chris Pizzello/Invision/AP

Nell and Susan Newman, the daughters of the late famous actor, adventurer and entrepreneur Paul Newman, are suing the non-profit created by their father, Newman’s Own Foundation, in state court in Stamford, Connecticut.

The lawsuit alleges the philanthropic leaders running the foundation are not giving enough funds to charities and fulfilling another specific condition created by Mr. Newman, who died in 2008, to give both daughters $400,000 each year.

The Newman daughters are now seeking $1.6 million in damages and a declaratory, legal judgment that mandates the must foundation to abide by Paul Newman's wishes. Nell and Susan Newman said they plan to donate these funds to charities.

Mr. Newman and his wife Joanna Newman were the golden couple of Hollywood for decades. Mr. Newman is famous for many of his films, such as his Academy Award-winning performance in “The Color of Money” and his many massive blockbusters such as “Cool Hand Luke,” “The Hustler” and many more.

In 1982, Paul Newman launched his famous food and beverage company, Newman’s Own Inc., as a sole owner, and then founded Newman's Own Foundation, a non-profit company. The foundation was launched by Mr. Newman in 2005 so that all money his food and beverage company received, including profits and royalties, would go to the foundation. His foundation is governed by a board of directors.

The Newman daughters claim the directors are not following their father’s one very specific rule. Mr. Newman did grant Newman’s Own Foundation the rights to his very famous name, image and likeness, but not unconditionally.

His one legal condition was that Newman’s Own Foundation put aside and give $400,000 each year to each of his "Daughters' Foundations." Both Nell and Susan, in their lawsuit, allege that though they are supposed to direct a portion of donations annually, the directors have been derelict in this duty and others.

"Mere days after his death, those Mr. Newman had entrusted with the stewardship of his legacy turned on him, made thinly-veiled threats of disinheritance to his daughters, and leveraged their control over his estate to set the stage for disenfranchisement of his family," the lawsuit says.

Court documents allege Mr. Newman’s business manager Brian Murphy and his adviser Robert Forrester kept his daughters out of the loop.

The lawsuit says Nell and Susan Newman saw the two trusted men "ignoring, contradicting and/or disregarding Mr. Newman's stated intentions and desires for his legacy."

Furthermore, the Newman daughters claim in their lawsuit, Murphy and Forrester began ignoring their father’s wishes on how to run the foundation before he died from lung cancer at 83.

About six months before Mr. Newman’s death, court documents state, Mr. Newman’s will was changed. Both Murphy and Forrester are accused of having Newman sign new documents for them to be named as the second and third board members.

However, the Newman sisters claim in the lawsuit their father was in very poor health and was losing his memory at the time. The lawsuit claims both Murphy and Forrester admitted that their very ill father couldn’t even remember what had occurred that day.

"Mr. Newman's wife and daughters were all shocked when his will was read to them because it was different in many important respects from what Mr. Newman and his advisors had explained to them and others many times over the years," the lawsuit states.

As per the board member appointments, the court documents say, ”This fateful decision gave the members (solely Forrester and Murphy after Mr. Newman's impending death) the ability to appoint the NOF Board of Directors which, in turn, would have complete control over NOF's affairs, including its charitable disbursements.”

After Mr. Newman died, only one daughter was given a seat on the foundation’s board for some time, but she had limited access, according to the court documents.

In 2020, Nell and Susan Newman claim in the lawsuit, Newman’s Own Foundation cut the funds they are supposed to donate annually by fifty percent.

"The writing on the wall is clear: this is a step towards Newman's Own Foundation ultimately dismantling entirely one of the most important aspects of Mr. Newman's plans for his philanthropic legacy by removing his family from the giving process altogether,” states the lawsuit.

The Newman’s Own Foundation released a statement rereading the lawsuit, saying, “Best practices surrounding philanthropic organizations do not allow for the establishment of perpetual funding allotments for anyone, including Nell and Susan Newman. A meritless lawsuit based on this faulty wish would only divert money away from those who benefit from Paul Newman’s generosity.”

Nell and Susan Newman strongly disagree.

In a statement about the lawsuit, the attorney for the Newman sisters Andy Lee said, “No one should have to feel that the legacy of a departed loved one is being dishonored in the way that Newman’s Own Foundation has disregarded the daughters of Paul Newman. 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 shortchanged in recent years and would ensure they receive an increased level of support in the future, in line with Mr. Newman’s wishes.”

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Diane Lilli
Diane Lilli
Diane Lilli is an award-winning Journalist, Editor, and Author with over 18 years of experience contributing to New Jersey news outlets, both in print and online. Notably, she played a pivotal role in launching the first daily digital newspaper, Jersey Tomato Press, in 2005. Her work has been featured in various newspapers, journals, magazines, and literary publications across the nation. Diane is the proud recipient of the Shirley Chisholm Journalism Award.