What would with fifth graders do with Kathy Cox’s million?
Anyone who watched Kathy Cox on “Are You Smarter than a 5th Grader?” understood the state school chief was there as a representative of the state Department of Education. It was her status as state school superintendent that led to the invitation to play the quiz show, which Cox won easily.
Shouldn’t the million dollars go to the three state schools that educate blind and deaf children, as Cox pledged on the air? The AJC reports the issue is still in the courts, Three months after Cox’ won the money she and her husband, John Cox, filed for Chapter 7 bankruptcy protection. Creditors now want the million in winnings to be treated as an asset, while the state contends the money should go to the schools.
I bet a jury of fifth graders would vote: Give the money to the children as Cox promised and do not make it part of Cox’s and her husband’s bankruptcy. (Her husband is a builder and has seen his fortunes sink in this recession.)
There is probably a legal argument to be made, but doesn’t the moral one trump it?
Tell us what you think about the site
Customer Care »
Vacation stops, manage subscriptions and more
AJC Services
Sections
Other Editions
Guides
Visitor Agreement | Privacy Statement
© 2011 The Atlanta Journal-Constitution
39 comments Add your comment
Jennifer
August 19th, 2009
12:40 am
Yes – the moral one wins out. My prediction.
Noggins
August 19th, 2009
1:55 am
Jennifer G., I agree with you. Having a blast at the Office, and we are hoping that Kathy and her husband will be O. K.
Ernest
August 19th, 2009
6:59 am
The money should go to the children. She went as a representative for the state of Georgia and publicly pledged any winnings to the schools. Whether she knew of her impending bankruptcy filing should be irrelevant.
Captain Underpants.
August 19th, 2009
7:33 am
You are all idiots. The money is being held by a bankruptcy attorney. I beleive she stated she would graciously hand over the money for State school expenditures but you AHoles with your hands out should be ashamed.
All of ya are money grubbing losers.
Reality 2
August 19th, 2009
7:50 am
I’m not a lawyer, but I think the money will probably end up going to the creditors. Although it sounds nice to give money “to children,” the reality is that those creditors are being short changed, too.
vince
August 19th, 2009
8:01 am
Is it possible to disclose the names of the companies or creditors that seek to take this money away from blind and deaf children?
Cere
August 19th, 2009
8:23 am
I agree with Ernest. She publicly stated that she was playing for charity. Movie stars do this all the time, and I’ve never heard of a creditor intervening. Hopefully, Cox signed a written statement declaring where the winnings go before she went on the show. This is a sad story and as so often happens, the only winners will be the lawyers.
mcs1
August 19th, 2009
10:23 am
I think that the creditors should be paid; look at it this way if someone owed you 10,000 dollars and they happend to come into 1,000,000 dollars and then said they wanted to give it to a charity, you would probably be ticked off because they really should not be able to give away money when they owe other people money.
vince
August 19th, 2009
11:33 am
mcs1 ……The differnce here is that she was on the show only as a charitable event. She never would have been asked to be on the show if it had not been because of her position and the idea of giving the money to charity.
I am a school principal. Each year the Hawks and Thrashers have contests during their game intermissions in which principals can shoot baskets or score goals from various places on the ice, or court. They can win money for their schools. It would never occur to me that I could win money for myself while serving in a public capacity. I think that would even be unethical.
Flip
August 19th, 2009
11:38 am
Hey guess MDOWNEY should be a judge. “anyone who watched understood the state school chief was there as a representative of the state Department of Education”. Well I’m glad MDOWNEY solved it all. I didn’t realize that, though i watched it. Was this an official trip? Was state money used to transport Kathy to the set? Was she housed at State Expense? It doesn’t really matter, though – MDOWNEY has offered her absolute pronouncement…. guess we just all need to fall in line with that.
SteveR
August 19th, 2009
11:39 am
First thing I said to the wife when she appeared on the show, “oh god, she’s going to really make us (Georgians) look bad somehow.” Either look stupid by not knowing the answers or act like a ditsy brained bureaucrat from a backward state. To our surprise she actually knew the answers, even though she acted like a ditsy-brained bureaucrat. But my prediction came true for making the rest of us really look bad by coming up with a new way to screw things up for what should be a positive moment for her and the state. The frumpy haircut says it all. We have not elected the best state school superintendents in the past few elections by a long shot.
Dunwoody Mom
August 19th, 2009
11:39 am
Sorry, this is a no-brainer. It was make perfectly clear even before Cox appeared on the show that the money was earmarked for education.
What is right for kids?
August 19th, 2009
11:44 am
I’m pretty sure Cox knew that she was going to file for bankruptcy when she pledged the money. Just another “feel good” tactic from our superintendent of schools. She doesn’t care where the money goes; I’m pretty sure she knew that it wasn’t going to her, though.
Sting 'em Buzz
August 19th, 2009
11:50 am
State law is going to go against the bankruptcy lawyer on this one. The kids will get the money. They money never belonged to Kathy.
Get Real
August 19th, 2009
11:57 am
You folks don’t understand BK laws. If the check was made out to her, then its an asset. Her official ‘capacity’ shouldn’t diminish the fact that she as an individual is giving the money to a charity. If this was so, the check would’ve been made out directly to the DOE. In her BK petition, she and her husband had to list ALL income. If this was included its a no-brainer. Should go to creditors, and each of you would be screaming if someone owed you money, had a million bucks, and decided to donate it. She is not a pass-through for these funds, but a recipient who is donating the money. There is a difference.
Get Real
August 19th, 2009
12:03 pm
Hey Vince, get back to work while you’re on my dime! Now I see why there are so many problems in schools now. The principal is blogging during the school day!
What seems right may not always be the legal. If she was there as DOE Sup., who paid for her trip? Important questions to consider.
Sting 'em Buzz
August 19th, 2009
12:30 pm
Fox would have been the one paying for her trip.
HERBIE
August 19th, 2009
12:30 pm
Enter your comments here
Sting 'em Buzz
August 19th, 2009
12:43 pm
Fox paid for the trip.
Scoutmamma
August 19th, 2009
2:32 pm
If Republicans are involved….the money will go to creditors. If Democrats are involved….it will go to the schools that need the funds.
Judy
August 19th, 2009
2:32 pm
As much as I agree that the money should go to the schools, GetReal is absolutely correct. Let’s hope Cathy knew enough to have the check made out to the DOE.
gatorman770
August 19th, 2009
2:35 pm
If Cathy’s winnings were pledged to a union (such as the UAW or NEA) the government lawyers would say screw the creditors!
Sting 'em Buzz
August 19th, 2009
2:42 pm
Scoutmamma, if Democrats are involved, they will seize it for their own use.
Professor X
August 19th, 2009
2:57 pm
I, too, agree with GetReal. I think it all depends on to whom the check was paid. If it was to the DOE (or the specific schools), then the money belongs to them. On the other hand, if it was written to her, then the creditors have the legal right. Those creditors can then turn around and donate the money to the charity of their choice if they wish. But it is their decision.
Sting 'em Buzz
August 19th, 2009
3:07 pm
She appeared on the same episode as Kathy Ireland, is there any doubt that this was a celebrity episode for charity?
HB
August 19th, 2009
4:59 pm
Honestly, I remember watching the show and thinking the wording was odd at the time. Usually, celebrity versions say something like “Julia Roberts is playing today for Make a Wish.” And there’s usually a guarantee of the charity getting a certain amount. When she was on, I think (and I may be wrong) Foxworthy asked her what she planned to do with the $, she said she planned to donate it, and I don’t think a minimum guaranteed was mentioned (again, please correct me if I’m wrong). So to me, it didn’t sound like the invitation was on the same terms as the usual celebrity charity shows (on those, it usually sounds like the show is donating the $, not the contestant donating winnings). Now, the state of GA may have allowed her to do the show based on her promise of donating the funds, but that’s not the same thing. As Prof X said, if the money went to her and she was solely responsible for determining where it went next, then it seems like the creditors have a strong case. If a philathropist pledged a million dollars to a group after running up debt, and then declared bankruptcy, would you really expect assets to go to the charity first? Does a church get a pledged tithe before creditors are paid?
Get Real
August 19th, 2009
5:22 pm
If the state of Georgia was somehow a creditor in a person’s bankruptcy, they’d want the money and wouldn’t think twice of donating it to a worthy cause.
Lee
August 19th, 2009
7:30 pm
First of all, Kathy Cox is not a celebrity and probably the only reason she was on the show was because of Jeff Foxworthy’s GA connection. That, and the producers were probably hoping that a state school superintendent would screw up and “not be smarter than a 5th grader.”
I too remember watching the show and I believe her words were “I plan to donate the money to ……” HB is correct, usually when they have a celebrity contestant on a game show, they say up front that they are “playing for xyz charity” and more than likely, that fact is backed up by a contractual agreement.
My guess, the bankruptcy court will find that Cox signed the same contract that every other contestant signs, which is backed up by the fact that the show already tried to give her a check. The bankruptcy laws are very restrictive about people trying to dispose of assets and the creditors in this case have every right to seek the proceeds of that game show.
the Captain
August 19th, 2009
7:45 pm
Wow, now we have actual proof that lawyers, and businessmen will actually steal from blind children. This country is doomed as long as our only moral is a market driven one.
clatsal
August 19th, 2009
7:59 pm
Kathy Cox absolutely predicted her upcoming bankruptcy! If Fox knew up front she was playing for charity something would/should have been signed. Since I have worked for the DOE, I can tell you there are all types of approvals/justifications for state workers to be able to travel out of state. If she was traveling in a “superintendent role” this would be a documented event.
Politics, politics, politics…she was looking for a positive spin on a foreseen bankruptcy and it hopefully will be exposed. Of course, she has already announced her campaign plans. Who feels comfortable in this economic era to have a state superintendent of schools whose in the headlines for bankruptcy and who uses children with disabilities for their own fame? Georgia..please be amarter than a fifth grader in November!!
clatsal
August 19th, 2009
8:17 pm
Politics, politics, politics…she knew when she went on the show that bankruptcy was on the horizon and she figured out a plan in which she could be the hero. Georgians, please be smarter than a fifth grader and do not choose a superintendent to manage the state’s education budget when she can’t handle her own!!!
Will
August 19th, 2009
9:12 pm
This really is a no-brainer. When she appeared on the show, she appeared as a direct contestant acting in her own legal self. She was not representing the state, nor was she representing any schools. She had the free will to do whatsoever she chose with the money, and she wanted to give it to these schools.
However, since she is now bankrupt, she no longer has that option. Creditors are owed money, and they must take priority over the philanthropy. This is not stealing from children; the children never had the money in the first place. This is, rather, stealing from creditors who are owed thousands upon thousands of dollars that they may never see.
alice
August 19th, 2009
9:30 pm
Unfortunately for us, there is no education job that will pay Mrs. Cox so much. So, whether she even wants to or not, she has to run again.
We need someone new in this position. She hasn’t done a good job, and in fact, has destroyed math education in GA.
I Love Math
August 19th, 2009
9:38 pm
alice,
Do you care to elaborate? I happen to think the new standards are A LOT better than the old ones. Now, the biggest problem is that we haven’t changed who are teaching math…
Stop and think
August 20th, 2009
9:00 am
What’s sad in America is that bankruptcy is misunderstood. The term “Bankruptcy Protection” is protection from the fact that it used to be that people were thrown in jail for theft because they didn’t pay back money that they were legally obligated to pay back. Because people realized that debtors were most often not in that situation by choice, and their was no “intent” legally, we created bankruptcy protection. However, that doesn’t mean that if you are in bankruptcy that you get a free pass to do whatever you want with money you owe to other people. If I want to give a million dollars to a school, I can’t go rob a bank, and during the robbery say “This robbery is for charity…” because the money isn’t mine. Cox and her husband signed personal garuntees for loans long before she was on the show, and she knew his business was going under and should have let someone else from the state go if she knew she didn’t have the money to donate. Instead, like most elected officials, she choose to look like the hero. Now she is trying to blame the people that trusted her family with millions of dollars that they lost for causing the problem. Legally, and by most people’s standard of ethics, the money would belong to the people that it was owed to under contract law that was agreed to long before she was on the show. The bankruptcy courts have the right to go back 1 year so that people can not “donate” money to their friends and family. Bankruptcy law has evolved over hundreds of years to account for many of the crazy things people do. For those that think it should go to charity because of a comment made on TV, these laws were made on purpose just for these types of ethical and legal decisions.
DB
August 20th, 2009
1:32 pm
I hate to say it, and seem cold and uncaring to deaf and blind kidlets — but Ms. Cox may not have a choice in the matter. Yes, she came on the show in her role as superintendent – but if the check was made out to her, then it was part of HER assets. I think it was very generous of her to pledge the money — but also a little shortsighted, since I doubt that the bankruptcy cam as a surprise to her.
For a “regular person” going through bankruptcy, the bankruptcy court couldn’t care less if you have pledged, say, $5,000 to your church for the year. If you don’t have it, and other creditors are standing in line to be paid, the court isn’t going to give the church any standing in the bankruptcy. Yeah, she may have “promised” them the money — but she also promised other people money, too, when her family borrowed money and was unable to repay it.
There is no “immoral” aspect of this. Other creditors made advances to the Coxes with the assumption of the money being repaid, and it is just as much of a “moral” aspect to honor those commitments as it is to throw money at deaf and blind kids.
Yeah, it sucks. It sucks for everyone involved. Just because you are deaf and/or blind, that does not give you a moral imperative to jump to the front of the line for money.
wondering
August 20th, 2009
1:33 pm
Had she not filed for bankruptcy, and the money had been donated to the schools, would she have received the tax benefit of having made the donation? If so, then wasn’t the money hers? If it was hers, then I think she has to use it to pay the debts. BUT…the real question may be if she ever really intended to donate the entire amount. Did she sign anything saying the money would be donated? Rumors bounced around that she never planned to give all the money to the schools, anyway. Seems that there may have been some campaign debt that needed to be dealt with.
FulCo teach
August 23rd, 2009
8:47 am
I don’t believe anyone mentioned that she and her husband both bought new automobiles just before filing for bankruptcy. To me, she is a pathetic example of an elected official attempting to stockpile some positive public perception (since she’s often been in the red on that one) at the expense of folks to whom she (or her husband) pledged repayment of debts. The “moral” thing might seem to be that the specific schools should receive the money but what about the “morality” of allowing her to walk away from debts that may cause those creditors to lose their businesses, employees lose jobs and benefits, etc.?
James
September 11th, 2009
8:08 pm
Even if her creditors are secured, and therefore “first in line,” this is a matter of agency law. Was she on the show in her role as the state super? If she was, then the money rightfully belongs to the state of Georgia. Unless the creditors intervened enough in Cox’s daily dealings to create a similar relationship, many courts would hold that Cox did this in her capacity as state superintendent, and the money belongs to the employer/principal, the state.