Cy Pres Doctrine Properly Applied to Distribute Gifts to the Hospital Which Had Taken Over the Duties of the Named Hospital

The Third Department determined Surrogate’s Court had properly exercised its cy pres power by distributing decedents’ charitable gifts to a hospital (Ellis Hospital) which had taken over the duties of the named hospital (St. Clare’s Hospital):

The relevant gifts were all undisputedly charitable in nature and, for cy pres relief, it was further necessary that the instruments establishing the gifts revealed a general charitable intent and that circumstances had changed rendering impracticable or impossible strict compliance with the terms of the gift instruments … .  * * * Here, the gift instruments, in which the donors also made various other charitable dispositions, revealed a general charitable intent.  With regard to the gifts in question, the intent was to benefit a hospital.  At the time the pertinent gift instruments were executed, St. Clare’s Hospital operated as a hospital and gifts to the Foundation went exclusively to St. Clare’s Hospital.  The stipulated facts reveal that the Foundation has stopped providing any charitable grants.  Its previous sole beneficiary, St. Clare’s Hospital, ceased operating as a hospital, modified its corporate name and changed its corporate function to promoting health and well-being.  Ellis Hospital assumed all responsibility for the hospital and related healthcare services previously provided by St. Clare’s Hospital. Matter of Lally, 516107, 3rd Dept 12-12-13