THECOMMONWEALTHOFMASSACHUSETTS

OFFICEOFTHEATTORNEYGENERAL
ONEASHBURTONPLACE
BOSTON,MASSACHUSETTS02108
MAURAHEALEY
ATTORNEYGENERAL

(617)7272200
(617)7274765TTY
www.mass.gov/ago

February26,2016
GregorJ.McGregor,Esq.
MichaelJ.O'Neill,Esq
McGregorandLegere,P.C.
15CourtSquareSuite500
Boston,MA02108
RE:ProutyGarden/BostonChildren'sHospital
DearMessrs.McGregorandO'Neill:
ThisletterfollowsourFebruary11111 meetingwithyouaswellasseveralprior meetings,telephone
conversations,correspondence,andextensivereviewofdocumentsinconnectionwithconcernsyouand
theFriendsofProutyGarden("Friends")raisedaroundplans byBostonChildren'sHospital(BCFI/the
hospital)toimplementoneormoreconstmctionprojectswhichwould resultinthedestructionofthe
ProutyGardenandthereplacementofthatspacewithothergreenspacethroughouttheplannednew
construction. Youhaveasked thatthisofficetakeactiontopreventthedestructionoftheProutyGarden.
Asthebasisforthisrequest,youassertthatthehospital'splanto demolishthegardenignoresspecific
restrictionsthatattachtoMrs.Prouty'sgiftestablishingthegardeninitspresentlocationin1956. You
alsoassertthattheBoardofBCHfailedtoconsideralternativeplansfortheconstructionofnewfacilities
thatwouldpreservetheProutyGardeninitspresentlocation.
ThisletterdescribestheinquirythatourofficehasundertakenwithrespecttotheProutyGardenand
explainswhy,basedontheinfonnationwehaveatpresent,wewillnot befiling alegalactionunder
charitieslawtochallengeBCH'sdecisionsconcerningtheProutyGarden.
AGO Inquiry
Thisinquirycommencedinor aboutFebruary2015withinter alia, pressreportsconcerningtheproposal
byBCHtoimplementportionsofitsMasterPlanwhichwouldresult intheeliminationofagardenspace
locatedatShattuckStreetandMeadowLaneonthe premisesofBCH.
TheNonProfitOrganizations/PublicCharitiesDivisionoftheAttorneyGeneral'sOffice(AGO)received
andreviewedletters anddocumentsprovidedtotheAGObytheFriends,invitedcounselfortheFriends
tomeetwithAssistantAttorneysGeneral,andasked theFriendstoprovideanydocumentaryorother
evidencetheyhadinsupportofassertionthattherewerelegal impedimentstotheBCHplansandthatthe
AGOshouldintervene.
Inaddition,representativesofBCHmetwithAGOstaffandprovided documentsrelatingtothemany
donationsbyMrs.Proutyandherhusbandtothehospital,correspondencewith Mrs.Proutyandothers
regardingtheuseoffundsdirectedbyMrs.ProutytoBCH,aswellastheprocessesbywhichtherelevant

fiduciariesconsideredanddecidedtoimplementconstruction whichwould displacetheexistingProuty

Garden.
AGO Role in Enforcement of the Due Application of Charitable Funds
TheAttorneyGeneral'sOfficehasstatutoiyauthorityto"enforcethedueapplicationoffundsgivenor
appropriatedtopubliccharitieswithinthecommonwealthand preventbreachesoftrustinthe
administrationthereof." Mass.Gen.L.ch.12,8. Withinthisbroadmandate,theAGOreviews
decisionsmadebyboardsof directorsandseniorexecutivesat publiccharitiestoensurethattheyare
consistentwiththedutiesofcareandloyaltythatsuchdecisionmakersowetothecharitiestheyserve.
Infulfillingitsoversightroleoverpubliccharities intheCommonwealth,theAGOdoesnotsubstituteits
decisionsforthedecisionsofthedulyconstitutedboardsofthosepubliccharities. Theboardmembers of
apubliccharityhaveoversightresponsibilitiesoveralloperationsofthatpubliccharity. Theymustactin
accordancewiththeirfiduciary dutiestotheorganization.
Applyingthesestandards,wedonotfind abasistoconcludethattheAGO'sinterventioniswarrantedor
appropriateatthistime. Asdescribedbelow,ourinquiiydoesnot supporttheFriends'contentionthat
Proutys'monetaiygiftswhichwereusedtoconstructand maintaintheProutyGardenwereimpressed
withanobligationthatthehospitalmaintainthegardenin itscurrentconfigurationinperpetuity. After
reviewoftherelevantdocumentsprovidedbyBCHandtheFriends,thefollowingfactsguideour
analysis:
Beginninginthelate 1920s,OliveHigginsProutyandher husband,LewisI.Prouty,donated
fundstotheChildren'sHospitalbuildingcampaignwhichwereusedtofundawardofthe
hospital inneedofrenovation. Thewardwasnamedin memoiyoftwooftheProuty'syoung
childrenwhohaddied. Asmallbronzeplaqueabovethedoormemorialized theProutyWard.
Duringthe1930's,Mrs.Prouty,anotedwriterofherday,madeadditionalcontributionstothe
hospitalintheformofroyaltiesfromthesaleofhernovels. Eventually,theProutys'donations
supportedtherefurbishingandmaintenanceofasecondward,acrossthehallfrom theProuty
Ward. Mrs.Proutyandherhusbandtookparticularinterestin thewardsandvisitedregularly.

TheProutysmadeatleastfive additionaldonationstothehospital'svariousbuildingcampaigns
between1946and 1951.

Mrs.Proutyservedasahospitaltrusteeforseveraldecades. Duringthattime,thehospital
administrationworkedtomaintainapositiverelationshipwithMrs. Proutyasadonor.
e

Overtime,asthestateofmedicineandtheneedsofBCHchanged,theformerProutyWardwas
leftvacant. Patientswhoformerlywouldhavebeenhousedin theProutyWardandin the
adjacentwardweretreatedin otherareasofthehospital.

LewisProutydiedin 1951andleftinhiswilla$10,000 bequesttoBCHfortheProutyWard.

CorrespondencedatedJanuary26,1953fromarepresentative ofMi.Prouty'sestateincludesa
discussionofMr.Prouty'sunderstanding,atthetimeheexecutedthecodiciltohiswill,thatthere
wasapossibilitythatthebuildingwhichhousedtheProutyWard mightbereplaced. Forthat
reason,Mr.Proutyincludedlanguage inhiswillthatthebequestbe madefortheProutyWard
"sofarasreasonablyfeasible."

Atsomepointinoraround1953,thewoodenstructuresthathousedtheProutyWardsweretorn
downtomakewayforanewclinicalbuildingthatconnectedexistingbuildingsand significantly
expandedthehospital'scapacitytocareforpatients.

In1955,in thecontextofstewardingMrs.Prouty'srelationshipwithBCH,hospital
administratorssuggestedalternativeusesfortheProutydonationspreviouslydesignatedforthe
useoftheProutyWard. Ultimately,Mrs.Proutydecidedtocontinuetosupportthehospitalby
fundingagardenterraceonaplotoflandowned byBCHwhichwasslatedforuseasaparking
lot.

InJuly1955,Mrs. Proutyreflectedher pleasureathavingthe"ProutyWardMemorialFund"

usedtosupportagardenandwrote: "Itmaynotbenecessarytouse allofthefund?Couldnot
theremaindergointoan endowmentfundfortheupkeepofthegarden?" Shealsoaskedwhether
itmightbeappropriatetohaveabronzeplaqueinthegardenstating"...thattheTerraceand
Gardenweregivenasamemorialtomytwochildren?"

InAugust1955,workcommencedon constructionoftheGarden. Mrs.Proutywasinvolvedin

thedesignandshepaidfortheservicesofthelandscapearchitects.
TheGardenwasbuiltonlandthat,atall relevanttimes,belongedtoBCH.
e

ABCHmemorandumdated November25,1957summarizesaconversationthatMr.Wolbach,
(thenthenewpresidentofthehospital), hadwithMrs.Proutyaftertheannual meetinginwhich
Mrs.Proutyinformedhimthatshewasa loyalsupporteroftheMGHandthatherfuture
contributionstotheChildren'sHospitalwouldbeonlytocompleteand maintaintheTerraceand
Garden. Mr.WolbachwrotethatMrs.Prouty"apparentlyfeelsaresponsibilitytoendowthecare
oftheGarden,andIthinkshewillbelookingforsuggestionsastohowthiscouldbedone."Mr.
Wolbachsuggestedthatthehospitalprovideanestimateastohowmuchitwouldcosttomaintain
theGardenonanannualbasis,and alsothatsupervisionofthemaintenanceoftheGardenmight
appropriatelybeaprojectforthehospital'sWomen'sCommittee"toundertakewhenMrs.Prouty
wishestowithdraw."

ByletterDecember16,1957,Mrs.Proutyrespondedtoa letterfromMr.Wolbach. Shewrote:"I

havehadmydoubtsastowhetherornottheGardenisawiseexpenditure,forIrealizeitisnotan
essentialandIdonot knowyethowmuchofanasset." Undercoverofthatletter,sheenclosed
"twochecks,thelargertobecreditedtotheGarden,thesmallertothenewbuildingsimplyasa
gesturetotellyouthattheGardenhasn'tblindedmetotheessentials."

Inalettertoahospital executivedatedDecember14,1966,Mrs.Proutywrote:"Youalwayssay
nicethingsabouttheGarden,butitisclearertomenowthatanycontributiontotheHospital
GardenisfarlesswelcomethanacontributiontotheBuildingFund. Ihaveoftensaidthatthe
Gardendoesnothingtocureaseriouslysickchildormakeahospitalgreat. Therefore,Iamnot
sendingmyusualNewYear'sgifttothegarden...Instead1amenclosingthischeckoften
thousanddollarsfortheBuildingFund."

Mrs.Proutydiedin1974. Mrs.Proutyprovidedforthemaintenanceofthegardeninherwill
througha$150,000bequesttotheProutyFoundationforthebenefitofChildren'sHospital.The
incomeoftheendowmentwastobeusedastheFoundation authorizedforthemaintenance,care,
upkeep,preservationandimprovementofpropertyknown asTheProutyTerraceandGarden.

TherelevantportionofMrs.Prouty'swillreflectsMrs.Prouty'sunderstandingthatthegarden
mightnotexistin perpetuity. ArticleThirteenthofthewillstatesinpertinent part:

notwithstandinganythingtothecontrary...intheeventthatsaid"ProutyTerrace
andGarden",includingtherealestateandtangiblepersonalpropertyhereinbefore
specified,shallforanyreasonwhatsoeverceasetoexistasaunitorbemaintained
inamannersubstantiallycomparableto,andnotlessextensivethan,thenmanner
inwhichthesameifbeingmaintainedatthetimeofmydeath,thenandinsuch
event"theProutyTerraceandGardenFundoftheChildren'sHospitalMedical
Center",includinganyaccumulatedincome,shallnolongerbeadministeredas
aforesaidbut,inlieuthereof,shallbedealtwithasanunrestricted gifttothesaid
Foundationforitsgeneralpurposes.
Forsometime,BCHhashadaplaquedescribingtheGardenwhichsays,in pertinentpart:
"However, Mrs. Prouty insisted on perpetually maintaining this location as 'a haven for patients,
parents, and staff'... Because of Mrs. Prouty's vision, this Garden will exist as long as Children's
Hospital has patients, families and staff to enjoy." Thereisnoindication ofthedateonwhichthe
plaquewasplacedatBCH,whodesignedtheplaque,or howthelanguageoftheplaquewas
decideduponinfactthereisnoindicationwhetherthelanguageinquotationmarkswas
attributabletoMrs.Prouty. Afterasearchofitsarchives,the hospitaldidnotfind documents
containingrelevantinfonnationaboutthedecisiontoinstallthededicationplaqueintheProuty
Gardenorthechoiceoflanguageontheplaque.
ThereissignificantcommunityinterestinpreservingtheProutyGardeninitscurrentlocation
bothfromthestaffofBCHandthebroadercommunityoffamilies,patientsand othersinterested
intheGarden. TheFriendssubmittedcopiesofmorethan10,000signaturesonan online
petitionaskingBCHtosavetheProutyGardenaswellaslettersandothertestimonialsfrom
membersofmedicalstaffand othersabouttheimportanceoftheGardentostaff,patientsand
theirfamilies.
Aspartofitsplanningprocessfortheproposednewconstruction,BCHsetupaGreenspace
CommitteewhosemandateistomemorializethehistoryoftheProutyGardenandincorporate
elementsoftheProutyGardenintofuturegardens. Thecommitteeincluded broadrepresentation
fromstaffphysicians,parents,former patients,spiritualleadersandparticipation bythechairof
theProutyFoundation,Mrs.Prouty'sgrandsonW.MasonSmith,III.

Mrs. Prouty's Gifts

Mrs.ProutymademanygiftstoBCHovertime. SomeweretobeusedfortheProutyWardsorother
buildingconstruction;someweretobeused fortheGarden. OurreviewsuggeststhatBCHusedthe
donationsitreceivedfromMrs.Prouty(and herhusband)tobenefitthehospitalandconsistentwiththe
purposesforwhichthedonationsweremade.
Incorrespondencetothisofficedated August7,2015,theFriendsassertthattherewasa"giftin
perpetuityofProutyGardentoBCH"andreferencean"endowmentin[Mrs. Prouty's]Willforits
maintenanceandupkeep." Whileitisclearthat Mrs.Prouty,in herwill,createdanendowmentthrough
herfoundationtomaintainthegardenforaslongasitexisted,itisourviewthatneitherthegiftoffunds
(infactaseriesofmanygiftsofmoneybyMrs.ProutytoBCHoverdecades)northebequest inherwill

formaintenanceandupkeep oftheGardenobligateBCHtomaintainthe ProutyGardenin itscurrent

locationin perpetuity.
Asathresholdmatter,itisnotalleged thattheProutysdonatedtheland uponwhich theProutyGarden
sits. Thereisnodeed fromtheProutysconveyingrealestatetothehospital. Noristhereaspecificgift
instrumentcreatingtheProutyGardenwhich imposesatrustupontheland suchthatthehospitalmustuse
thepropertysolelyasagarden inperpetuity. Rather,thedocumentswereviewed reflectaseriesof
communicationsinwhichMrs. Proutyeventuallydecidedthatthefunds remainingintheexistingProuty
Wardfund in1955could beputtoadifferentuse. ThesefundsandnewcontributionsbyMrs. Prouty
wereusedtopayforthedesign, constructionandmaintenance ofthegardenwhichhas nowexistedfor
nearlysixdecades.
TheFriendsobservethat,atthetimeMrs.Proutywasconsideringherinitialsupportforthegarden,she
raisedconcernsaboutthepossibility ofthehospitalusingthelandupon whichthegardenwouldbe
constructedforfuturebuildingexpansion. Theypointtoadocumentfrom herrepresentativein 1955
indicatingthatMrs.Proutyquestionedthe"permanence"ofthe"ProutyTerrace"incasethehospital
requiredenlarging. Inourreview,we foundnocommitmentonthepartofthehospitalthattheterrace(or
garden)wouldremain permanentlyin thatlocation,noris itlikelythatthehospitaltrusteeswouldhave
agreedtosucharestriction. Indeed,itdoes notappearlikelythat Mrs.Proutywould haveinsistedon
sucharestrictionin oraround1955 whenshealsoquestionedwhethersuchaterrace"wouldfillareal
need"orprovetobeanassettothe hospital,staffandpatients. Moreover,strongevidenceofMrs.
Prouty'sunderstandingaboutthepermanenceoftheGardenmay befound inArticleThirteenthof her
will(referencedabove)inwhichshespecificallycontemplatesatimewhentheGardenmay notexistand
requiretheendowedmaintenancefund.
Ourreviewoftheprivatecorrespondenceand publicdocuments,culminatingwithMrs.Prouty'sown
will,doesnot providethebasisforAGOinvolvementatthistimetoenforcethedueapplicationoffunds
giventoapubliccharity.
The Trustees' Consideration of the Approved Design Plans
Inassessingaboard's performanceofitsfiduciarydutiesin makingimportantdecisions,theNonProfit
Organization/PublicCharitiesDivisionexaminestheway inwhichtheboard oftrusteesapproachesa
determinationliketheonetoapprovenewconstruction plans. Therearenoregulationsdictatingprecisely
howaboardshouldmakeadeterminationconsistentwithitsfiduciaryduties. Massachusettscorporate
lawaddressesthedutiesofadirectorinG.L.c.180,section6C andstates"Adirector,officeror
incorporatorofacorporationshallperformhis duties...ingood faithand inamannerhereasonably
believestobein thebestinterestsofthecorporation,andwith suchcareasanordinarilyprudent personin
alikeposition withrespecttoasimilarcorporation organizedunderthischapterwould useundersimilar
circumstances." WereviewedtheBCHBoard'sdetermination inthiscasetoassessiftheboard acted
withduecareandloyalty. Baseduponour review,wedonotbelievethattheBCH boardfailedto
considervariousalternativeplansfortheconstructionofnewfacilitiesthatwouldpreservetheProuty
Gardenin itspresentlocationanddonotbelievethatthe BCHBoardacted inbreach ofitsdutyas
fiduciaries.
BCHprovided uswithinformation concerningthefourprimarycriteriain itsplanningprocessfor
constructingnewclinicalspacein Massachusetts: "(1)whethertheneworexpandedfacilitieswould
meettheBostonChildren's programmaticneeds;(2)adjacencyofthenewbuilding(s)toexistingclinical
facilitiesandsupportservicesinordertomaximize patientsafetyandefficiency;(3)thetimelinefor
developmentandtheabilityof BostonChildren'stocontinueoperationsduringtheconstructionperiod
(limitingdisruptiontopatientcareand adverseeffectsonabuttinghealthcare providers);and(4)overall

affordabilityoftheproposal." Withitsarchitectsandotherdesignprofessionals, BCHdevelopedand

analyzedninealternativesin theLongwoodMedicalarea inadditiontoasitein Brooklinewhichwas not
pursuedduetozoningrestrictions. TheBoardofTrusteesreviewedmanagement presentationsand
recommendationsanddiscussedtheconstruction planand alternativesinfour boardmeetings between
MayandOctober,2014. Theboardselectedthecurrentdesignproposalatitsmeetingon October24,
2014afterweighingeachoftheselectioncriteriaand estimatedprojectcostsandtimelinesofthe
respectiveproposals. Theproposed plansincludereplacementgreenspacebothindoorsand outside,all
ofwhichismoreaccessibletopatientsandotherswhomaybemobility impaired. Muchofthespacewill
beavailable12monthsayearasopposedtotheoutdoorgardenspacerepresented bythecurrentGarden
towhichaccess islimited bythenatureofcoldNew Englandwintersand otherwiseharshweather
conditions.1
ItisourviewthattheBCHTrusteesconsideredtheimplementationoftheMasterPlan consistentwiththe
exerciseofitsfiduciatyobligations. BecausetheOfficeoftheAttorneyGeneraldoesnotsubstituteits
judgmentforthedecisionsofthedulyconstitutedboardsofthosepubliccharities,theactionsoftheBCH
trusteeswithrespecttothepossibledestruction oftheProutyGardendonotformthe basisfor
interventionbytheAGO.
Weunderstandand appreciatetheevidentpassionofthecommunitywithrespecttothisbeautifulopen
space. Weunderstandaswellthat inthecontextof itsplannedrenovation, BCHintendsto include
significantopenand gardenspacereflectingitsviewofthesignificantvalueofopenspaceforthe
emotionalandphysical healthand healingoftheBCHcommunity. Whilewedonotdiscourage
communityinvolvementandencourageBCHtocontinuetoengagethebroad BCHandBoston
communityinaddressingthelossoftheProutyGarden,theAGOiscompelled torespectthelegal
standardsthatapplytoourreview. Accordingly,wedeclinetofilealawsuittochallengethedecisionsof
BCHinthecontextofitsdecisiontoembarkon newconstructionthat,oncefinal,wouldincludethe
destructionoftheProutyGardenandreplacementoftheGarden withothergreenspace.
Wehopethatthisdescriptionishelpfultoexplainthestepswehavetakenand thedeterminationswehave
reachedtothispoint. Wecontinuetoinviteyoutoprovidedocumentation orotherevidencerelatedtothe
legalissuesdescribed in thisletter.

Sincerely,

DeputyDivisionChief
NonProfitOrganizations/PublicCharitiesDivision

1TheFriendsassertthatthehospitalactedin violationofitsbylawspertainingtoconflict ofinterestbyallowing

Mi.MasonSmith,a landscapearchitectandMrs.Prouty'sgrandson,toserveonthehospital'sgreenspace
committee. Itisallegedthata conflictarisesbecauseMr.Smith,priortohisretirement in2001,wasaffiliatedwith
thepredecessortoShepleyBulfinchRichardson,thearchitecturalfirm retainedbythehospitalto assistwiththenew
construction. WearesatisfiedthatMr.Smith'sformeraffiliationwithShepleyBulfinch(or itspredecessor
organization)andhis voluntaryserviceonthe hospital'sadvisorycommitteedoesnotamounttoa violationofthe
hospital'sconflictoftheinterestbylawthatwouldwarrant theAttorneyGeneral'sintervention.