The Suit: Family Ties, Alleged Abuse of Trust, and UBS’ Role
Filed in 2022, the lawsuit accuses John Blair—a former trustee and attorney—of manipulating the foundation’s elderly creators and steering assets under the control of his son, Jay Blair, a senior VP of wealth management at UBS. The plaintiffs allege this maneuver was designed to benefit the Blairs personally at the expense of the charitable trust’s mission.
According to the complaint, UBS “sanctioned” Jay Blair’s actions and prevented other trustees from exercising any authority over the foundation’s accounts since taking control.
The Tower Foundation, created in 1990, supports organizations in New York and Massachusetts that assist children and youth with intellectual and learning disabilities, mental health, and substance use disorders.
Panel Slams UBS’ Strategic Flip-Flop
The court criticized UBS’ litigation strategy as a classic case of forum shopping.
“They intentionally availed themselves of the district court’s authority… then sought to compel arbitration only after losing,” the panel observed.
Had UBS succeeded in its Colorado River motion, the case would have been dismissed or stayed in favor of state court—making any future arbitration attempt impossible, the court emphasized.
