Key Events in Gift-Annuity Lawsuit: a Chronology

June 1994: Dorothy Ozee notifies the Lutheran Foundation of Texas and other Lutheran charities that she suspects they unduly pressured her 95-year-old great-aunt, Louise T. Peter, into donating the bulk of her $2-million estate to the charities.

September: The Lutheran organizations ask a state judge to declare that they are allowed under Texas law to issue gift annuities and serve as trustees.

December: Ms. Ozee sues the Lutheran charities in federal court, charging that they and other groups illegally colluded to set interest rates for gift annuities and wrongly served as trustees.

February 1995: Bills are introduced in the Texas Legislature to guarantee that charities have the legal right to offer gift annuities and serve as trustees for annuities and other trusts.

May and June: Gift-annuity measures are approved by Texas lawmakers and signed into law.

May: U.S. District Judge Joe Kendall rules that the Lutheran charities violated Texas law by issuing gift annuities and serving as trustees.

July: In response to the federal lawsuit by Ms. Ozee, U.S. Sen. Kay Bailey Hutchison, Republican of Texas, introduces a bill that would exempt gift annuities nationwide from federal antitrust and securities regulations.

October: In reaction to the federal price-fixing case, Rep. Henry J. Hyde, Republican of Illinois and chairman of the House Judiciary Committee, and other lawmakers introduce bills resembling the Senate measure.

October: Judge Kendall rules that the lawsuit will be pursued as a class action against some 1,900 charities affiliated with the American Council on Gift Annuities that had donors with outstanding gift annuities as of December 30, 1990.

December: President Clinton signs the Philanthropy Protection Act of 1995, crafted to protect charities’ legal authority to offer planned gifts.

December: Defendants seek to have the Texas case dismissed. Shortly afterward, plaintiffs amend their charges, saying in part that the 1995 federal law doesn’t protect the American Council on Gift Annuities from antitrust charges.

September 1996: U.S. District Court refuses to dismiss the case based on the 1995 federal legislation.

April 1997: A U.S. Court of Appeals for the Fifth Circuit refuses to dismiss the suit.

July: For the second time in 18 months, Congress approves a bill designed to exempt charities from antitrust suits over gift annuities. President Clinton signs the bill.

November: Defendants ask the U.S. Supreme Court to review the case.

December: The U.S. Supreme Court nullifies the appellate court’s April 1997 decision and instructs the appeals court to reconsider the suit in light of the new federal legislation.