Lawsuit Reveals Vast Profits at City Museum as Battle Continues Over Ownership

By Chad Garrison Wed., Mar. 20 2013 at 7:00 AM

Photo: Jennifer Silverberg

David Jump

According to court filings, on March 8 Jump distributed $8.2 million in profits from City Museum and IBC to Cassilly's estate and to himself, for a total of $4.1 million per partner. He then required that both he and the estate reinvest $4.1 million ($2,050,000 per partner) back into the businesses by March 22. In addition, Jump stated that he would then invest another $4.1 million in the City Museum and IBC through his river-barge business, American Milling, or other investors.

If Cassilly's estate reinvested the minimum amount of $2,050,000, it would maintain a 25 percent ownership stake in City Museum and IBC. If it reinvested no money by the deadline, its stake in the combined companies would be reduced to zero.

William Wunderlich, an attorney for the estate, fired back three days later with a motion to block Jump from going through with the plan. In his plea to the court, Wunderlich called the deadline and reinvestment demands "capricious" and "arbitrary" and impossible for the estate to meet in such a short time given the complexities of probate. The real intent of Jump's scheme, wrote Wunderlich, was to allow him "to confiscate valuable assets of the the estate...without just compensation and without approval from the probate court."

For the time being, the court has agreed. On March 13, St. Louis Circuit Court Judge Robert Dierker issued a temporary restraining order prohibiting Jump from "taking any action whatsoever which would result in the dilution of the ownership interests of said estate." Dierker has also scheduled a hearing for April 1 to consider the estate's request to a review financials for City Museum and IBC.

giovannacassilly.com

Giovanna Cassilly

Last year another St. Louis judge ruled that Jump did not have to disclose City Museum's or IBC's accounting information to the estate. But in its argument for the restraining order this month, Giovanna and the estate's attorney maintain that that information is crucial in order for the estate to file its income tax return and consider whether it should reinvest in City Museum and IBC as Jump has demanded.

According to the estate, Jump's attorneys handed over K-1 federal tax forms this month showing that in 2012 alone the estate's cut of profits from the businesses amounted to $2.2 million from City Museum and another $413,000 from IBC. (Double those figures to include Jump's take from the businesses, and you get a good idea about just how lucrative the two entities have become.) But the estate argues that it has no way of verifying if those profits are accurate without access to City Museum's books.

Prior to this month's payment, Jump had not distributed profits to Cassilly's estate since October 2011 when the estate received two checks -- one for $80,000 and another for $200,000.

Jump's attorney, Paul Puricelli, tells Daily RFT that the $8.2 million recently pulled out of City Museum and IBC represents income over the past year and a half. He adds that Jump's desire to reinvest some of those funds back into the company is fair, especially since his client never wished to disburse income to himself or the estate in the first place.

"What makes it difficult is a partner who wants every penny of profit from the company and then complains when you give them what they asked for," says Puricelli.

Wunderlich, the attorney for the estate, could not be reached for comment. But in court documents he suggests Jump is trying to low-ball the estate. City Museum is worth at least $11 million, according to the estate, and IBC is worth around another $7 million.

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homyclause

We can say that they are making a huge profit from the numbers but what about overhead; the price of insurance, payroll and expansion, which they do constantly. I love the museum, I love the people their and the price is reasonable considering all the attractions. What Dave Jump is doing is making sure that the company survives. Believe me, Jump is a millionaire, he doesn't want the company just for himself or the money. He's probably just trying to keep it out of the hands of "people" who will run it into the ground. If I was him, my thinking would be along the lines of, "I was here from the beginning and refuse to let you destroy a company that I helped build."

judy211

Is anyone able to see the big picture here. If Jump takes over the Museum without the Cassilly family the museum is doomed. Jump is not an artist. The Museum is a work of art created by Robert Cassilly. The Museum is a creation by a brilliant mind. There are inspirations and themes in his artwork inspired by his widow and children. I would like to see his family carry on that tradition and continue to expand the ever growing Museum. His widow BTW is an incredible artist. I was able to see her exhibits in several galleries over the years and why Jump wouldn't want her as part of that in the growth-design of the museum is beyond me.

Timothy Gatti

City Museum stopped being a nonprofit when Cassilly bought it back in 2002. See http://www.bizjournals.com/stlouis/stories/2002/02/25/story3.html. World Aquarium is a non-profit.

Joshua Lewis

Just some food for thought: http://www.ted.com/talks/dan_pallotta_the_way_we_think_about_charity_is_dead_wrong.html

morgan.lewis876

What's going on seems obvious. People are shady, and now that Bob is out of the picture, let's push his estate out, too.

CharlesLyons

This is interesting... and frankly, a bit drawn out. This is the first article I've seen that portrays this kind of account on the amount of Jump's 'keep'. I'm not sure why this has gone on for so long. The only people suffering are those of the Museum. People need to stop being greedy.

James Madison

Stop bitchin' about how much money someone else makes. Either you like the place and are willing to pay the price, or you do not like it - then it does not matter to you. Those that want things for free need to grow-up. If the City Museum trimmed a buck or two from the admission price, these people will still be complaining, and there would be zero profit for expansion. The City Museum is not stagnant. It is constantly evolving. AND READ THE FULL ARTICLE. He wants the profits re-invested back into the museum! I just want whoever has the controlling share in the museum to keep the place fun and exciting for the kids. You deserve every penny you earn, including the millions!

John L. Williams

A business.....making profits? How dare they!

Margherita Lahrman Wohletz

8+ million!!! In profits!!!

Emily Malabey

And extra to the aquarium part. Is CM a NPO?

Steve Dixon

Can't say I am surprised to see heavy profits. I love the place, but the cost of admission seems steep to me. Then they charge you extra for rooftop access...