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April 30, 2008

Montana Court Says Museum Board Failed in Duties

The board of the Charles M. Bair Family Museum, in Martinsdale, Mont., which closed the facility in 2002, is being ordered by the state Supreme Court to reconvene within six months after a ruling in which the court found the board breached its fiduciary duties by closing the museum, reports The New York Times.

In a case that the Times says has been followed closely in the nonprofit world, the court said the board did not spend enough money to establish and maintain the museum. As a result of the court’s ruling, the museum’s trustee, U.S. Bank, was ordered to create a new board, the paper reports.

The museum was established after the death of Alberta M. Bair, the heiress to a family fortune her father had built through his work in minerals, finance, and sheep. It was home to European antiques, works of art, and Native American artifacts, the paper reports.

“It’s great news,” said Mike McGrath, Montana’s attorney general. “The Montana Supreme Court said the board does not have unfettered discretion.”

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