PIKEVILLE – The Blue Grass Community Foundation has filed a civil complaint against the Salyersville National Bank president and the Magoffin County Community Foundation, Inc. disputing the management of control of the charitable fund established by the late Scotty Patrick.
On November 17 in federal court the Blue Grass Community Foundation filed suit against Donna Salyer and the Magoffin County Community Foundation, which was set up by Patrick and is owned and operated by the Blue Grass Community Foundation for the benefit of Magoffin County, according to the suit.
Patrick, who passed away in 2024, set up his estate to direct substantial sums of money to be paid to the Blue Grass Community Foundation (BGCF), and then set up several endowed funds managed by the BGCF under the umbrella of the Magoffin County Community Foundation (MCCF) upon his death.
The suit alleges, “However, instead of honoring Mr. Patrick’s clearly documented final wishes – memorialized in various estate planning documents discussed below – Salyer, a former board member of the Affiliate Fund (MCCF) and the Executrix of the Scotty Patrick Estate, chose to establish a separate entity, the New Foundation. It appears that Salyer, who exercises control over the New Foundation, intended and intends to divert estate assets or other donations from their intended recipients and to utilize the goodwill of the Affiliate Fund in the Magoffin County community for her own profit and for that of the New Foundation.”
According to the suit, Salyer set up a separate “Magoffin County Community Foundation,” using the same name as the one managed by BGCF, which they allege infringes on the Blue Grass Community Foundation’s rights to the trademark “Magoffin County Community Foundation” and claims it is a “breach of both Salyer’s fiduciary duties to BGCF and her express written agreement with BGCF.”
The Blue Grass Community Foundation asked the federal court for an injunction preventing Salyer and the new foundation from continued use of the trademark and for monetary damages resulting from “the infringement and various breaches.”
The suit included extensive documentation outlining how Scotty Patrick had delegated the charitable funds going from as far back as 2002, when he set up the Magoffin County Community Foundation through the Blue Grass Community Foundation, and outlining how he wanted the money used to support the Magoffin County community, how the board was set up, separate funds for different endeavors and how much money would be allocated each year through each individual fund.
According to the complaint, Salyer signed a conflict of interest agreement stating she would take no actions which conflict with the interests of the long-established Magoffin County Community Foundation. Salyer was appointed as the executrix of Patrick’s estate and as successor Trustee of Patrick’s revocable living trust.
“Since her appointment, she has taken several actions which are inconsistent with her obligations to the Affiliate Fund and Mr. Patrick’s final wishes,” the suit claims.
The complaint cites and occasion where Salyer allegedly attempted to direct money from an investment fund under the control of Patrick’s estate, even though a beneficiary designation directed that those proceeds were to be paid to the Blue Grass Community Foundation.
Salyer allegedly also sought and obtained an order from the Magoffin County District Court directing another investment company to pay the proceeds of an account to the estate by representing that a fund in the name “The Buck and Lillie May Patrick Memorial Fund” does not exist, even though that fund does exist through the Blue Grass Community Foundation and Salyer was reportedly aware it exists and operates as an endowment fund within the Magoffin County Community Foundation.
According to the court files, on August 28, 20-25, Salyer allegedly caused the new foundation under the same name to be incorporated as a nonprofit corporation, using the same objective as the original Magoffin County Community Foundation, but did not disclose to the Blue Grass Community Foundation she was doing so. Original Magoffin County Community Foundation had clauses explaining how it could disaffiliate with the Blue Grass Community Foundation, but none of those requirements had been met.
Count I of the complaint basically outlines the trademark claims to the “Magoffin County Community Foundation” and Count II involves the “tortious interference with a prospective advantage,” claiming she interfered with the Blue Grass Community Foundation’s relationships with the board members of the original Magoffin County Community Foundation by soliciting them to act as the board of directors of the new foundation. In doing so, they claim she did not inform BGCF of her actions, did not obtain permission to do so, and did not conduct an informed vote of the board of directors when creating the new foundation.
“Salyer’s motive in so doing was improper, in that she intended to appropriate the goodwill of the Affiliate Fund and profit by doing so, without disclosing material facts to the Affiliate Board and others, and deceiving third parties and BGCF while taking actions intended to cause harm to BGCF,” the suit reads.
Count III outlines a breach of Salyer’s fiduciary duties they claim she owed to BGCF (via the conflict-of-interest agreement) and Count IV claims a breach of contract of such agreement.
The Blue Grass Community Foundation requested the federal court make a judgment regarding the use of the trademark “Magoffin County Community Foundation,” and for the court to award BGCF reasonable attorney fees, damages and all other relief the BGCF is entitled to.
At press time, no court date has been scheduled. The SI will continue to monitor this case as it unfolds.
Claims made in lawsuits are allegations only and no ruling has been made in this case.
Statement from Ashley Brown, Donna Salyer’s attorney:
Salyer Rejects Allegations, Stands Firm on Fulfilling Scottie Patrick’s Vision for Magoffin County
MAGOFFIN COUNTY, Ky. (Nov. 25, 2025) – Scottie Patrick entrusted Donna Salyer with carrying out his final wishes as outlined in his written estate plan. Central to that plan was the establishment of the Magoffin County Community Foundation to serve the long-term needs of Magoffin Countians. For several years, the Magoffin County Community Foundation operated as part of Blue Grass Community Foundation (BGCF) in Lexington, Kentucky.
Mr. Patrick’s estate plan anticipated that, in time, the Magoffin County Community Foundation would transition to full independence, managed locally by Magoffin Countians and exclusively for the benefit of the community he loved. In recent years, however, the local stakeholders – Magoffin Countians – were denied meaningful input on fund management while BGCF was paid thousands of dollars per year to manage the fund.
Ms. Salyer maintains that the precious resources made possible by Mr. Patrick’s generosity should be managed transparently, responsibly and with direct oversight by Magoffin Countians. She remains committed to upholding his legacy and ensuring that these funds are used in alignment with his explicit intentions.
As Mr. Patrick’s chosen fiduciary, trustee and executor, Ms. Salyer has acted solely in good faith since the outset. She has never received any fees or compensation for the work she has done on behalf of the Patrick estate and can fully account for every dollar in the estate and trust at the time of Mr. Patrick’s passing. She adamantly denies the allegations recently raised against her and intends to vigorously defend against the baseless and frivolous lawsuit.
CONTACT:
Ashley Brown
Attorney for Donna Salyer
Ward, Hocker & Thornton, PLLC 849-422-6000
abrown@whtlaw.com
