HARTFORD, Conn. — A new lawsuit has exposed a deep rift between two of Paul Newman’s daughters and the late actor’s charitable foundation funded by profits from the Newman’s Own line of food and beverage products.
The daughters, Susan Kendall Newman and Nell Newman, allege that their own charities are supposed to receive $400,000 a year from Newman’s Own Foundation under a mandate from their father, but the foundation has cut those payments in half in the last years
They filed a lawsuit Tuesday in state court in Stamford, Connecticut, seeking $1.6 million in damages to give to their foundations for charitable giving.
The daughters say their father, who started Newman’s Own Foundation three years before he died in 2008, allowed the foundation to use his name and likeness, but only under several conditions, including giving each of the foundations of the two daughters $400,000 a year.
Susan Kendall Newman, who lives in Oregon, and Nell Newman, of California, worry that the foundation is setting the stage to eliminate them entirely in the way that some of the profits from Newman’s Own products are given to charities. They also accused the foundation of “contradicting” their father’s wishes and intentions for years.
“No one should feel that the legacy of a deceased loved one is being dishonored in the same way that Newman’s Own Foundation has ignored Paul Newman’s daughters,” said Andy Lee, New York City attorney for the daughters. , in a statement. .
“This lawsuit does not seek personal compensation for Mr. Newman’s daughters, but simply seeks to hold (Newman’s Own Foundation) accountable to charities that have fallen short in recent years and would ensure they receive a greater level of support in the future, in line with Mr. Newman’s wishes,” he said.
Newman’s Own Foundation has yet to file a response to the lawsuit in court, but has issued a statement.
“Best practices around philanthropic organizations do not permit the establishment of perpetual funding allocations for anyone, including Nell and Susan Newman,” the statement said. “A meritless lawsuit based on this flawed desire would only divert money from those who benefit from Paul Newman’s generosity.”
The foundation added: “While we hope to continue to solicit recommendations from the Newman family for worthy organizations, our funding decisions are made each year and will continue to reflect Paul Newman’s clear purpose and our responsibility to the best practices governing private foundations”.
Paul Newman, who lived in Westport with his wife, the actor Joanne Woodward, created the Newman’s Own brand in 1982, with all profits going to charity. The product line currently includes frozen pizza, salsa, salad dressings and pasta sauces, as well as dog food and pet treats.
In his will, Paul Newman left his assets to his wife and the Newman’s Own Foundation.
Newman’s Own, the product company, is a subsidiary of the Newman’s Own Foundation, a non-profit organization. The foundation says more than $570 million has been given to thousands of charities since 1982.
According to 2020 tax records, the foundation had more than $24 million in revenue and paid out $11.5 million in contributions, gifts and grants. Operating and administrative expenses totaled nearly $4.5 million.
According to his daughters’ lawsuit, Newman’s Own Foundation wrote to them just four days after their father’s death, saying it reserves the right to stop allocating funds to charities identified by the daughters. The suit says it contradicted Paul Newman’s explicit instructions to the foundation.