Troubled Pennsylvania Fund Suffers Setback in Civil-Rights Case

By DEBRA E. BLUM

A federal appeals court has ruled that the financially troubled Barnes Foundation, in Merion, Pa., must pay the legal expenses for neighboring residents whom the foundation accused of racism in a 1996 civil-rights lawsuit.

In a strongly worded opinion, a 2-to-1 majority of the United States Court of Appeals for the Third Circuit overturned a lower court's decision to deny the residents' request that the Barnes pay their legal fees, and told the

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