Queen Mary Settles Suit by Latin American Museum

A foundation that runs the Queen Mary settled a lawsuit Tuesday with the Museum of Latin American Art, which alleged that the operators of the ocean liner owed the museum at least $1 million.

The art museum sued the RMS Foundation several years ago, alleging that a $1-million promissory note given to it by philanthropist Robert Gumbiner was not part of a gift Gumbiner gave the foundation in 1993 to help deal with financial problems.

Attorneys for the Queen Mary contended that the money was originally part of a $2-million loan to the RMS Foundation that was ultimately forgiven by Gumbiner.

Before the settlement, Long Beach Superior Court Judge Margaret Hay had ruled that the note was a loan and issued a summary judgment in favor of the museum for the $1 million, plus interest.

The terms and amount of the agreement are confidential.

Joseph Prevatil, president of the Queen Mary, said the settlement was fair and should not hurt the ship’s finances and plans for expansion in the years ahead.