Tuesday, December 07, 1999
$100M estate case ends, another starts
Widow accuses trustees of abusing funds
BY DAN HORN
The Cincinnati Enquirer
A two-year battle for control of Charles H. Dater's $100 million estate ended Monday in a Hamilton County courtroom.
But just hours later, a new fight began in appeals court.
The original civil lawsuit was resolved when Mr. Dater's widow, Ann Dater, agreed to dismiss all claims of fraud and mismanagement against the attorneys and brokers who handled her husband's estate.
She did not, however, agree to drop her claims against the Charles H. Dater Foundation, which is among the largest in Greater Cincinnati.
Her attorney, Quintin Lindsmith, asserted her claims against the foundation in an appeal filed Monday with the Ohio 1st District Court of Appeals.
Her appeal challenges the transfer of millions of dollars into the foundation from Mr. Dater's family trusts.
Mrs. Dater contends that the trustees of the foundation improperly handled her husband's assets and took advantage of his fading mental health.
Her original lawsuit claimed that Mr. Dater's lawyers — the late Paul Krone and his son, Bruce — encouraged her husband to sign over control of his wealth to them.
She also accused his brokers — Stanley Frank Jr., David Olberding and John Silvati — of collecting huge fees that her husband would never have approved if he had been of sound mind.
Mrs. Dater, who could not be reached for comment, said earlier this year that she does not want to dismantle or damage the foundation.
Her goal, she said, was to remove the trustees she believes took advantage of her husband.
The trustees' attorneys, who left court without comment Monday, have argued that the foundation and family trusts have thrived under their leadership.
State records show the foundation has grown dramatically each year, with assets climbing from $45 million in 1995 to $53 million in 1997.
The rest of Mr. Dater's estate — about $50 million — is now in a series of trusts set up to benefit his widow and her children.
Mr. Dater, who died in 1993 at age 81, inherited a fortune and invested well throughout his life. He set up the foundation to benefit dozens of causes including the Children's Hospital Medical Center and Cincinnati Opera.
Mrs. Dater's lawsuit states that the foundation became an issue when she learned that the attorneys and brokers had accepted more than $4 million in fees and expenses from her husband's estate.
They also became trustees of the foundation, collecting annual salaries of $70,000 a year for working six hours a week.
Many of the fees, Mrs. Dater claims, were approved by her husband when he was so ill he could barely hold a pen.
Hospital records show that Mr. Dater suffered from “progressive dementia” and other health problems during the final years of his life.
Common Pleas Judge Arthur Ney threw out Mrs. Dater's claims against the foundation in 1998, concluding she should have raised the issues years earlier in probate court.
Mrs. Dater contends she was not aware of the problems then because the people she relied upon for advice were the same people she now believes caused the problems.
The appeal she filed Monday argues that point and seeks to reinstate her claims against the foundation.
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