Bank of America, N.A. v. Peter F. Neronha, Attorney General

14. Bank of America, N.A. v. Peter F. Neronha, Attorney General

Citation: 2026 WL 478704 (R.I. Feb. 20, 2026), Nos. 2024-30-Appeal and 2024-31-Appeal

Relevant Facts

• Five charitable trusts (the Harold W. Wood and Gertrude B. Wood Trust, the Marion Law Trust, the John F. Preston Charitable Trust, the E. Russell Richardson Trust, and the William F. Sayles Endowment Fund) named Memorial Hospital in Pawtucket, Rhode Island as a charitable beneficiary.

• Memorial Hospital closed in 2018 due to financial difficulties.

• Bank of America, as trustee, filed a petition seeking application of the cy près doctrine to redirect trust funds.

• Various parties submitted proposals for alternative beneficiaries, including Kent County Hospital, The Miriam Hospital Foundation, and Progreso Latino.

• A bench trial was held in July 2023; the trial court designated Miriam Hospital as the alternative beneficiary.

Legal Issues

Whether the cy près doctrine applies; what alternative beneficiary best serves the settlors’ charitable intent; whether the trial court erred in focusing on inpatient and emergency care as the trusts’ primary purpose.

Positions of the Parties

Boa: Miriam Hospital is the appropriate alternative beneficiary because it provides the same type of hospital care (inpatient and emergency) and serves the Blackstone Valley communities.

Opponents: The trusts had a broader purpose including outpatient and specialty services; Miriam Hospital was not the best alternative; a joint proposal from Progreso Latino and Miriam Hospital Foundation would better serve vulnerable communities.

Decision of the Court

AFFIRMED. Miriam Hospital was designated as the alternative beneficiary of the charitable trusts.

Reasons for the Decision

• The cy près doctrine permits the court to redirect charitable trust funds to a similar purpose when circumstances have changed.

• The trial justice carefully examined each trust document and historical context, finding that “hospital care” at the time of creation meant primarily inpatient and emergency services.

• Miriam Hospital provides the same type of services, serves the same Blackstone Valley communities, and is the entity most closely fulfilling each settlor’s dominant intent.

• The Miriam Hospital Foundation/Progreso Latino joint proposal was rejected because neither provides bona fide hospital care in the traditional sense.

• The appellate court deferred to the trial justice’s “laudably meticulous analysis.”