Judge scolds charities for Lilly money suit

INDIANAPOLIS — Two charities bickering over the trust money of an heiress to the Eli Lilly and Co. pharmaceutical fortune were scolded by a judge over a lawsuit claiming a bank reduced the value of their donations because of delayed stock transactions.\nThe Chicago-based Poetry Foundation and Americans for the Arts in Washington, D.C., have been named as two beneficiaries of 91-year-old Ruth Lilly's trust after her death.\nLilly, the only surviving great-grandchild of Eli Lilly, who founded the Indianapolis-based pharmaceutical company, had a wealth valued at more than $1 billion in 2002.\nThat year, the two nonprofits sued National City Bank of Indiana, claiming the bank failed to sell $286 million worth of trust-held stock in Eli Lilly and Co., diminishing the organizations' future payday by tens of millions of dollars. The trusts were worth roughly $184 million when the suits were filed.\n"If you have a gift horse," Indiana Court of Appeals Judge John Baker said during a court hearing Tuesday, you "keep your mouth shut."\nIn court filings, attorneys for the bank that manages Lilly's assets said both organizations should be grateful for any money they receive. The two groups "are potential beneficiaries today only because the bank sought them out," National City's lawyers wrote.\nPoetry Foundation lawyer Eugene Schiltz questioned a clause in the trust documents that gives the bank the ability to sell or "retain indefinitely" assets as long as any decision is made in good faith.\nEarlier this month, a probate court judge awarded legal guardianship of the ailing heiress to two relatives. Ruth Lilly cannot walk, has a feeding tube and suffers periodic infections, according to testimony. She was also said to have trouble comprehending and communicating.