Successor hospital has standing in cy pres proceeding
A nonprofit hospital that acquired the assets and continues the services of another hospital in a state-mandated consolidation has standing to participate in a cy pres proceeding to determine the use of charitable funds held in trust for the benefit of the hospital no longer in existence, a Surrogate’s Court in New York has held. Its unique contractual relationship with the closed hospital gives it a “special interest” justifying intervention. St Clare’s Hospital in Schenectady was ordered to relinquish its license to operate and transfer its assets to Ellis Hospital pursuant to a hospital consolidation mandate of a special state commission. Ellis Hospital was required to provide services...
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