Liz Chace’s Attorney Says Family Members Are Driven by “Greed and Personal Animus”
Monday, July 17, 2023
L-R The late Kim Chace and his wife Liz Chace. He died in 2011 and changes to his will are the focus of new legislation. PHOTOS: File
The legal clash between Malcolm Chace and 11 other members of his family against his stepmother and her son took a new twist this past week.
Last week, lawyers for Malcolm Chace and the other members of his family filed a lawsuit in Providence Superior Court claiming that changes to Kim Chace's will in the final days before his death were improper. Today, Malcolm Chace is a principal in the investment firm Canton Hathaway.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAt stake are millions of dollars, and this lawsuit may have implications for another family battle.
READ ABOUT THE LEGAL BATTLE BETWEEN MALCOLM CHACE AND ARNOLD "BUFF" CHACE HERE
The six-count lawsuit alleges that lawyers made improper changes to the late billionaire Kim Chace’s will while he was incapacitated.
The changes, known as the “second Codicil,” dramatically enriched Liz Chace by increasing the annual distribution from one of the family's many trusts from $400,000 to $800,000.
The difference between the two amounts plus the interest totals millions — and may be close to $10 million.
Much of Kim Chace's wealth was tied to his family's role in the creation of Warren Buffett's legendary Berkshire Hathaway.
"The grounding to Mr. Chace's long and successful career in business and as a private investor began at Chase Manhattan Bank in New York City. He returned to Providence in 1967 to participate in the family businesses. In 1996 he founded Bank RI where he remained as Chairman of the Board. In 1992 Kim succeeded his father on the board of Berkshire Hathaway, which he served on until 2007," stated Kim Chace's obituary in The New York Times in 2011.
While Kim Chace was alive, he and Liz Chace were high-profile donors in the community.
"One of Mr. Chace's proudest moments in support of the arts in Providence was the 2009 opening of The Rhode Island School of Design Chace Center, which he jointly endowed...," according to his obituary.
In 1996, "President Vartan Gregorian announced that Liz Chace '59 and Malcolm G. Chace have endowed the women's basketball head coaching position with a $1.4-million gift to the University. Brown's new endowed chair in women's basketball is the second in the nation."
There were gifts to the arts, the theater and other community groups.
Liz Chace's Attorney Disputes Claims - Charges "Greed and Personal Animus"
Michael Burke, a partner at the law firm DarrowEverett, told GoLocal, "My client is aware of this new lawsuit and firmly denies the allegations that there was any wrongdoing or impropriety with respect to the changes made to Kim Chace’s Will through the Second Codicil. Malcolm and his siblings have been aware of the Second Codicil since shortly after Kim Chace’s passing over a decade ago and never once raised an objection or any concern when Kim’s Will was probated in the Florida Probate Court."
"Their decision to raise this issue now only highlights their greed and personal animus towards Liz and the other defendants," he added.
"The Second Codicil was not drafted or executed at my client’s request. I cannot speak for the reason the second codicil was executed or comment on behalf of Attorneys [Doris] Licht or [Robert] Petix," said Burke.
Reached by phone last week, Petix told GoLocal, “This thing again. I have talked to Hinckley, and they told me not to talk to anyone about anything. I want to be cooperative…I am not supposed to answer any questions.”
Burke added, "This 'near-endless family litigation' as you put it is becoming a waste of court and public resources. These new claims lack any merit and I am confident my client will prevail in all respects."
Malcolm Chace's Attorney Asserts Changes to the Will Are Invalid
As GoLocal reported last week, one of Malcolm Chace's lawyers, Robert Corrente, former U.S. Attorney for Rhode Island, told GoLocal Tuesday in a phone interview that he believes “the execution of the will is invalid.”
The lawsuit states, “The 2nd Codicil purports to be signed by Robert G. Petix, Jr., Esq. at Kim’s direction, while also being witnessed by Attorney Petix and one other person, Doris Licht, Esq."
“On June 23, 2011, Kim died from his illness, never recovering from the brain surgery,” states the lawsuit.
“It is our contention that [Petix] could not witness his own signature. That is black letter law,” said Corrente.
