ST. LOUIS (CN) – A preschool and daycare foundation for poor children claims The Greater St. Louis Book Fair owes it $335,000. The Nursery Foundation of St. Louis claims the Book Fair is hiding profits from the fair.
The Nursery Foundation says it created the book fair, “as a fund-raising activity solely to support the charitable operations of plaintiff.”
In 2000, the Book Fair became an independent nonprofit, and the two charitable organizations agreed that the Book Fair would give the Nursery Foundation 100 percent of the fair’s net proceeds from 2000-2004; at least 80 percent of net proceeds from 2005 to 2006; at least 65 percent of net proceeds from 2007 to 2008; and at least 50 percent of the net proceeds thereafter, according to the complaint.
But Nursery claims Book Fair isn’t being truthful about the fair’s net proceeds.
“Defendant breached those fiduciary duties by failing to pay all of the contributions owed to Nursery Foundation, by failing to interpret the agreement in a reasonable manner in the best interests of Nursery Foundation, and by failing to resolve the dispute over the correct amount of contributions in a timely manner,” the complaint states.
Nursery says the Book Fair owes it $335,058.
It seeks damages for breach of fiduciary responsibility, an accounting and clarification of how the fair’s net proceeds are to be calculated in the future.
The Nursery Foundation is represented by Michael Waxenberg.
Nursery was formed in 1947 and operates a pre-school and daycare for disadvantaged children. Nursery claims the book fair is the main source of funding for its charitable ventures.