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Why would you assume that a billionaire would donate $5M, just because they promised to?
Billionaire sues charity to get out of $5M donation
- Thread starter dapaterson
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daftandbarmy
Army.ca Dinosaur
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Sounds like 'the contract' was pretty threadbare
"According to court documents obtained by CBC News, the Katz Group alleges that it shouldn't have to make the donation because Boyle Street didn't try hard enough to fundraise on its own."
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They raised $7.3M... doesn't sound like a lack of effort...
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Didn't meet the bare minimum they were supposed too...
This just sounds like a messy celebrity divorce filing.
This just sounds like a messy celebrity divorce filing.
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Two companies, let's say A and B, enter into a financial agreement. The contract of which was negotiated by corporate lawyers from both A and B
B failed to meet the agreed upon conditions set out in the legal, binding contract both sides agreed to.
Now, B wants A to stay true to their commitment to pay, even though B didn't meet their agreed upon commitments to receive the payment.
Have I got that right?
B failed to meet the agreed upon conditions set out in the legal, binding contract both sides agreed to.
Now, B wants A to stay true to their commitment to pay, even though B didn't meet their agreed upon commitments to receive the payment.
Have I got that right?
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"But according to court documents, Katz Group and Boyle Street also signed an agreement for a "backstop gift," agreeing that if Boyle Street was unable to meet its fundraising goal on its own during the campaign, the Katz Group would give it an extra $5 million.
The gift amount would decrease on a dollar-for-dollar basis if Boyle Street was able to raise at least $8.5 million on its own."
The wording is a bit wonky, but sounds like the Katz group agreed to give them $5M if they raised up to $8.5M, then reduce the donation for every dollar over (i.e. if they raised $13.5M they wouldn't give them a top up). The goal was $28M, if they could move ahead with a third of that probably had some kind of stretch goals for that, and a basic plan for the $8.5M.
The $8.5M was apparently the minimum needed to go ahead, so if the group raised $3.5M the top up would get them moving forward.
Sounds messy but why arbitration exists.
The gift amount would decrease on a dollar-for-dollar basis if Boyle Street was able to raise at least $8.5 million on its own."
The wording is a bit wonky, but sounds like the Katz group agreed to give them $5M if they raised up to $8.5M, then reduce the donation for every dollar over (i.e. if they raised $13.5M they wouldn't give them a top up). The goal was $28M, if they could move ahead with a third of that probably had some kind of stretch goals for that, and a basic plan for the $8.5M.
The $8.5M was apparently the minimum needed to go ahead, so if the group raised $3.5M the top up would get them moving forward.
Sounds messy but why arbitration exists.
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Katz will have to prove that Boyle bargained in bad faith. Katz's contention being that after raising $3.5 mil, they just sat there waiting for the top up and didn't try to get more donations.
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