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Barclay Donation Ruling Heartens Arts Community : Philanthropy: Fund-raisers are thankful for a legal precedent but don’t anticipate a rash of suits. They cite good relations with those who pledge assistance.

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TIMES STAFF WRITER

There was relief among those in the county’s arts community Thursday, the day after a judge ordered the widow of developer Richard H. Barclay to finish paying a $1-million pledge her husband made to build the Irvine Barclay Theatre.

Legal experts called the decision clear-cut: If you make a pledge and get something for it--whether it’s a coffee mug or your name on a building--you must pay up.

Most organizations don’t take pledge scofflaws to court unless it involves large sums of money. But many were grateful the judge appeared to give them some legal backing should they end up in court.

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“I think we’re all relieved in the sense that there is a legal structure we can rely on,” said Michael Botwinick, director of Newport Harbor Art Museum. “We’ve all been very concerned not only with the case, but the fallout.”

Botwinick and others did not predict a crush of lawsuits.

“As a society, we don’t have any trouble going to court on business matters, but when it comes to donations, we’re all reluctant,” Botwinick added. “We all regret that it had to go this way, but I don’t think the trustees had any other choice.”

Barclay’s widow, Marjorie, had stopped paying the pledge after her husband’s death in 1992 and said the theater was free to change its name and keep the $400,000 her husband had contributed before his death.

But on Wednesday, Orange County Superior Court Judge James H. Poole ruled that a one-page agreement between Richard Barclay and the theater was enforceable.

A pledge becomes legally binding when some kind of exchange occurs, which was the foundation of the Irvine Barclay lawsuit. In exchange for the Barclays’ $1-million gift, the theater would bear their name.

“The court decision conforms with textbook law,” said William Staley, a Los Angeles-based attorney who specializes in cases involving nonprofit organizations. “A pledge is an enforceable contract. A charity is entitled to rely on a promise and to enforce it.”

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Still, Laguna Playhouse Director Richard Stein called the Barclay case an anomaly and said he has not experienced similar problems with pledges.

“My experience is with donors who honor their pledges,” Stein said. “The donors generally have a long-term relationship with an organization and continue to give throughout their years of association.”

Bill Furniss, president of KOCE in Huntington Beach, said the public television station relies heavily on pledges and donations and that almost everyone has lived up to the commitment to contribute.

“You want to know that your membership, underwriters and donor base is consistent and truthful,” Furniss said. “In my 25 years here, I can’t remember anyone flat-out reneging on an underwriting contract. This is obviously a critical part of our planning and thinking.”

The Orange County Community Foundation, which is a repository for multiple charitable funds, does not include pledges in its planning in order to avoid such situations, said Karen Callay, an executive assistant and program officer at the foundation.

“Also, if it’s a married couple involved, we do encourage that both be signers on the request,” Callay said. “That’s partly to avoid that kind of misunderstanding and bad feelings down the line.”

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Many in the arts community had been watching the Barclay case closely.

“It’s an obvious and right decision,” said Louis G. Spisto, executive director of Santa Ana’s Pacific Symphony orchestra. “It’s a relief to all of us who manage nonprofit organizations.”

Spisto added that a ruling in Marjorie Barclay’s favor “would have made the entire commitment process very unwieldy and uncertain.”

The $600,000 to be paid by Marjorie Barclay will replenish funds spent on the $17.6-million theater set on 2.3 acres at UC Irvine. The attorneys for the Barclay family said this week that they plan to appeal the judge’s decision.

Times staff writer Zan Dubin contributed to this story.

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