WASHINGTON, Jan. 28, 2011 /PRNewswire/ -- The Cafesjian Family Foundation (CFF) welcomes the decision by the U.S. District Court of the District of Columbia that the National Bank of Washington building and other contiguous properties revert to the Foundation under the terms of a 2003 grant agreement. The January 26 ruling opens the way for development of the Armenian Genocide Museum and Memorial in the heart of the nation’s capital, a project the federal court called a “laudable goal.” “I am gratified by this decision,” said President and CEO Gerard L. Cafesjian, adding that “the more significant vision for the Museum and Memorial can proceed without attempts to lessen the impact of the museum.” In her comprehensive 190-page opinion, Judge Colleen Kollar-Kotelly dismissed a series of accusations by Assembly Chairman Hirair Hovnanian and his associates that Mr. Cafesjian and CFF Vice President John Waters delayed the museum’s progress, triggering the return of the real estate. The Court found instead that Mr. Cafesjian acted in good faith in managing the Museum and Memorial. “The delays in the development of the museum were not caused by Defendants’ mismanagement, but rather by the Board’s failure to reach agreement,” wrote Judge Kollar-Kotelly, adding that “in light of the infrequent Board meetings and Hovnanian’s reluctance to get involved at even a basic level, it is hardly surprising that Cafesjian and Waters were unable to get the museum up and running during their three years at the helm.” Mr. Cafesjian advanced his own funds to meet budget shortfall, which were “irritated by the Assembly’s failure to transfer funds being held for AGM&M and by Hovnanian’s failure to immediately fulfill his $5 million pledge,” the Court determined. The testimony of Mr. Hovnanian and his associates was repeatedly deemed “remarkable” and “not credible.” In many instances, observed the judge, “lack of memory appeared to be driven more by convenience than cognition.” Referring to Mr. Hovanian, Peter Vosbikian, and Robert Kaloosdian, she stated that “these individuals' convenient lack of memory is an attempt (conscious or otherwise) to minimize their involvement in an agreement that turned out badly for the Assembly.” Based on a close study of the meeting records, the Court also concluded that Van Krikorian had “sought to have the minutes amended to increase the authority of the building and operations committee and cover up the discrepancy between the language in the transcript and the authorization in the minutes.” In addition to the real estate, the Foundation is entitled to a seat on the Museum and Memorial board as well as attorney’s fees. Other outstanding remedial issues will be addressed in a further hearing before the final judgment is entered. Reached in Washington, former U.S. Ambassador to Yerevan John Evans said, “It is a great relief that this painful matter has finally been adjudicated and exciting that there is now a prospect of realizing this worthy endeavor, possibly—if Armenians and their friends can rally round—even in time for the 2015 centennial of the Armenian Genocide.” Specific findings Mr. Cafesjian was entitled to file suit to protect his contractual rights while participating in the corporation, the Court declared. Articles criticizing the other trustees were published in the Cafesjian-owned Armenian Reporter “to defend Cafesjian’s reputation from attack by others.” No evidence was found that any of the published statements were inaccurate or defamatory. Charges that Mr. Cafesjian and Mr. Waters had undermined the Museum and Memorial’s development efforts were found to be “without merit.” Although donor enthusiasm was dampened by the litigation on both sides, Mr. Waters and Mr. Cafesjian “cannot be penalized for pursuing valid claims.” Mr. Cafesjian and Mr. Waters hired former Assembly Executive Director Ross Vartian and Director of Congressional Relations Rob Mosher “after they had either been fired or decided to leave the Assembly’s employ,” the Court determined. The direct advocacy organization USAPAC was founded by Mr. Cafesjian “to fill unmet needs within the Armenian advocacy community” and “did not ‘compete’ against the Assembly in any meaningful sense,” stated the judge. There was “no evidence that the Assembly was injured in any way by the failure to receive advance notice about USAPAC’s formation.” “We are very pleased with Judge Kollar-Kotelly’s comprehensive and well-reasoned decision,” concluded CFF’s legal counsel John B. Williams of Jones Day. “The court dealt with each and every allegation raised by Mr. Hovnanian and his colleagues, and rejected all of them. These were allegations that had no legitimate basis, and should never have been brought. Hopefully the court’s decision will lead to the conclusion of this litigation, and permit this project to move forward.”

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