Museum Settles Dispute Over Pledge

The Museum of Contemporary Art, in Chicago, has reached an out-of-court settlement in a dispute over a $5-million unpaid pledge.

Under the settlement agreement, the institution will receive two paintings for its collection, and the museum has dropped its lawsuit against a former chairman of the museum’s board.

In December, the museum sued Paul Oliver-Hoffmann, a real-estate developer who had agreed in writing to give the museum $5-million to help endow and operate a new building. Mr. Oliver-Hoffmann died in April, while the lawsuit was still pending.

In its lawsuit, the museum contended the document was a binding pledge. But Mr. Oliver-Hoffmann’s widow, Camille, said the couple considered it simply “a letter of intent” that did not obligate them to pay anything.

Mr. Oliver-Hoffmann decided not to go through with the gift when he began to argue with other board members and the museum’s director over how his money would be used, said Mrs. Oliver-Hoffmann. She said he also resigned as chairman of the board.

Even with the unpaid pledge, the museum surpassed its $55-million goal to raise money to build a new facility. But the institution said it decided to sue because it felt a contract had been broken.

Under the terms of the settlement, the museum will receive “Banner,” a 1990 painting by Anselm Kiefer, and “Cindy,” a 1988 painting by Chuck Close.