Judge dismisses all charges in Watkins Trust case

LAWRENCE--Douglas County District Court Judge Jack Murphy today dismissed all charges against the Bank of America and the University of Kansas regarding the operation of a trust for Watkins and Miller scholarship halls on the KU campus.

The plaintiffs, who filed the case in early 2001, requested the dismissal. They had alleged that the bank and the university had mismanaged the trust, which was established by KU benefactress Elizabeth Watkins in the 1930s.

"We're pleased by the judge's action. The university has maintained all along that the allegations were without merit. Today's judgement confirms that the trust has been managed prudently and in accordance with Mrs. Watkins' wishes, " said Lynn Bretz, university spokesperson.

Bretz said today's court action concurs with previous reviews over the years by such regulatory agencies as the Kansas Board of Regents, the Kansas Attorney General's office and the U.S. Comptroller of the Currency. All reviews concluded that the trust is managed properly.

The university remains committed to maintaining an exemplary scholarship hall system, said Ken Stoner, director of KU student housing. Watkins and Miller halls are two of 10 KU scholarship halls.

"Our scholarship halls are overseen by dedicated, professional staff who faithfully discharge their duties to care for the halls and the students who live in them," he said.

"We have no quarrel with the student petitioners. We all want the same result -- a superb scholarship hall system. We will work with them to achieve our common goal."