Regents sue foundation over use of MCG name
Fundraisers took name before trademark filed
By Walter C. Jones | Morris News Service
Wednesday, October 21, 2009

ATLANTA --- The University System of Georgia is suing the MCG Foundation for its refusal to stop using the name connected to the Medical College of Georgia, according to court papers filed Tuesday in Richmond County Superior Court.

The suit is the latest in a spat that started in the summer of 2008 over the control of the fundraising organization. University foundations generally work in harmony with the school's administrators, and in exchange the school permits use of its name, logo and other references to the foundation's efforts to raise money. Accreditation depends on mutual cooperation, according to the suit.

The suit complains that when then-MCG President Dan Rahn resigned from the foundation board in September 2008, the organization was obligated to stop using the school's name.

The foundation began in 1954, 31 years before the University System's Board of Regents registered the trademark for the college name.

In January, the regents sent a letter to foundation officials asking them to stop using the name. The foundation did change its name, but in June it changed it back.

"The Board of Regents now believes the courts provide the only means of resolving the relationship between MCG and the foundation," the regents said in a statement.

University System spokesman John Millsaps declined to comment, as did the attorney for the foundation.

"It's my policy not to comment on pending litigation," said attorney Patrick McKee of Newnan. "I have advised my clients not to comment either."

News reports from the time the dispute became public quoted foundation Chairman William Mayher saying the organization turned down a request by Dr. Rahn for $5 million toward the construction of a new dental school building. Mr. Mayher said at the time that the foundation had only $8 million in unrestricted funds and that such a large request would weaken it.

However, he said another reason for the rejection was because Dr. Rahn had earlier requested funds for the benefit of a venture Sen. Charles Walker, D-Augusta, was launching. Mr. Walker is now serving a federal sentence for fraud and tax evasion.

Dr. Rahn and university officials denied that any requests were made in connection with Mr. Walker, and the foundation's minutes never formally reported the request.

After being refused the $5 million for the dental school, Dr. Rahn resigned from the foundation and demanded the rest of the board quit as well. When most of the 38-member board kept their posts, the school began efforts to sever ties.

Dr. Rahn has since resigned as president of MCG to take a similar post in Arkansas.

Online extra

See documents related to the lawsuit. (PDF format)

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