As the Greek saga
continues, Colgate University is once again calling upon its
legal defense. Delta Kappa Epsilon (DKE) launched a lawsuit
last spring in an effort to prevent the chapter house
acquisition. Now, Colgate is faced with two new lawsuits filed
by groups of alumni from the Phi Delta Theta (Phi Delt) and
Beta Theta Pi (Beta) fraternities.
The latest suits are of a different breed, however. Not issued
by the undergraduate brotherhoods or alumni organizations (as
in DKE's case), the Beta and Phi Delt suits are
"derivative lawsuits," meaning that they were filed
by a small percentage of alumni on behalf of the Alumni
Corporations. Under New York State law, a derivative lawsuit
may be submitted by a group consisting of five percent of a
corporation's shareholders. The group can file the suit on
behalf of the corporation if they believe the Board of
Directors has violated either its "duty of care" or
"duty of loyalty". It is important to remember that
the cases have not been brought by the Alumni Boards or
undergraduate chapters themselves.
The arguments of the two suits are nearly identical. The
plaintiffs in both cases seek the reversal of the house sales,
which occurred last spring. They maintain that the decision to
sell was made only in the face of coercive conditions
established by the University. The Phi Delt suit accuses
Colgate of "wrongful threats," "unequal
bargaining power" and "one-sided contract
terms" in the sale negotiation process. According to the
plaintiffs, the unfair terms established by Colgate tied the
hands of the Beta and Phi DeltaAlumni Boards, forcing them to
acquiesce to the sale.
Both fraternities voted last spring to sell their property to
Colgate in compliance with the University's requirement that
all students, including Greek members, live in
University-owned housing (except for the approximately 250
seniors traditionally given permission to live off-campus each
year). Colgate's New Vision for Residential Education,
released in the summer of 2003, stipulated that any Greek
organization not existing on Colgate-owned property by fall
2005 would lose recognition. After the decision was made to
sell, certain alumni members of the Beta and Phi Delt houses
wrote letters to their Boards asking for legal action against
Colgate.
"There has
been a lot of debate, both formal and informal," Beta
Alumni President Eric Will said. "But we, as a Board,
voted not to take legal action."
The same occurred with Phi Delt.
"A small group drew up a lawsuit and gave it to the Phi
Delt Board," Secretary of the College Kim Waldron said.
"The Board considered the request and then said
'No'."
Given the final no by the Alumni Board, a group of about 85
Phi Delt Alums pursued their independent suit. Led by Students
and Alumni for Colgate (SA4C) President Tim Sanford, the
plaintiffs issued their "derivative lawsuit" on July
20. Although filed in July, the first action taken on the Phi
Delt case was at a hearing on Friday, November 4.
"We don't think they have legal standing," Waldron
said. "We made a motion to dismiss on the Phi Delt case.
We expect that the judge will make his decision within the
next few months."
Colgate's motion to dismiss argues that the suit has no merit
because the "plaintiff's counsel expressly acknowledged
that the Phi Delt Board did not breach the duty of loyalty or
the duty of care."
The argument holds that the plaintiffs have misinterpreted the
grounds on which they could submit a derivative lawsuit, and
that the case should therefore be dismissed.
"In the Phi Delt case, Colgate offered a motion to
dismiss the charges. The judge has 'reserved judgment.' We
take this as a good sign that he did not agree with Colgate
and wants to consider the matter further. He knows this has
become a high profile case; Colgate had a large contingent
present for the hearing," a recent entry by the
pro-plaintiff creators of sa4c.com said.
The case has therefore become a waiting game.
The judges' ruling is expected sooner rather than later,
however, and no one is listening more carefully than the Beta
plaintiffs, who filed their own suit October 19.
"The two cases are extremely similar," Waldron said.
"Almost identical. So in Beta's case they've agreed to
wait for the Phi Delt decision."
Sanford, lead
plaintiff in the Phi Delt lawsuit, explained his frustration
with the university's actions.
"This all started when I got the 16-page pamphlet about
the 'New Vision' in July of 2003," he said. "My
reaction was that it was nuts. Anyone can see that the
acquisition is the first step in getting rid of
fraternities."
Sanford described Colgate's "gun to the head"
bargaining method as a "dastardly approach," adding
that "It has alienated thousands of alumni."
"The goal of the suit is to overturn the sale.," he
said. "I expect that if Beta and Phi Delt win, the others
[Greek organizations] will follow."
In an official statement, the Phi Delta Theta Board disagreed
with the stance taken by Sanford and other plaintiffs.
"The Board believes that continued legal action by this
group will be divisive and counter-productive for our
fraternity," the statement said. "We have held a
membership vote on the sale of the house and it was approved
by an overwhelming majority of the members. With a few notable
exceptions, most of the plaintiffs graduated from Colgate over
40 years ago and have not been actively engaged with the
undergraduate chapter or national fraternity in the last 10
years."
In the same vein, Beta alumnus and house representative to the
newly formed Fraternity and Sorority Alumni Initiative (FSAI)
Tighe Sullivan spoke of the Beta plaintiffs as being overly
resistant to change.
"A lot changed from the 50's to the 80's, and a lot has
changed from the 80's to today," he said. "They're
just living in the past; they refuse to realize that things
have changed.
Sullivan went on to emphasize the importance of alumni
involvement and a resurrection of traditions and ideals as a
way to ensure the future strength and success of the Colgate
fraternity system.
This year DKE's chapter house remains empty, its organization
disbanded; but legal action from the Mu chapter is far from
over. Recently the DKE undergraduate brotherhood filed a
lawsuit of its own.
"The primary
complaint is that, while all DKE undergraduates are now living
in University-owned housing, as was the college's requirement
for controlling the chapters, DKE has been banned," the
website sa4c.com reports. "Colgate's written policies do
not specifically require the sale of private property to
receive or retain recognition. Colgate must address the
lawsuit by early December and an oral argument over the issue
will likely occur in January '06."
Beyond the undergraduate suit, the Madison County District
Attorney has been requested to investigate Colgate University
on the grounds of "criminal coercion."
This request marks a new approach by the DKE representatives.
The most well-known case in this widening legal spectrum,
that, issued by the DKE Alumni Corporation last spring, is now
in what Waldron described as a "phase of discovery."
DKE must answer Colgate in December and Colgate in turn must
answer in January. If the trial continues it is expected to go
to court in December of 2006.
Lawsuits against the University do little to tell the story on
campus, however. As far as the acquisition status is
concerned, life in Colgate's newly-acquired Greek houses seems
to be running quite smoothly.
"The ownership is going really well," Director of
Fraternity and Sorority Affairs Kelly Opipari said. "The
students have been very cooperative."
Beta Theta Pi President senior Saul Waller echoed that
sentiment:
"Things are going really well for us right now," he
said. "The University staff we deal with - Kelly Opipari,
Sue Smith, Res Life, the crew from Buildings & Grounds -
have all been working really hard to ease the transition and
to keep things around the house running smoothly. We still get
to live in a mansion with 45 of our closest friends, we still
get to host great social and philanthropy events (like Beta
Beach and our silent auction fundraiser), and we still get to
have the experience that we've always had. I wouldn't trade
that for anything, and certainly not for having our name on
the top of a deed."
Though a positive picture is drawn from those involved in the
transition, reminders of the struggle take shape in the Beta,
Phi Delt and DKE lawsuits, as well as in the ongoing Freedom
of Association Coalition for Truth (F.A.C.T.) and SA4C
campaigns.
Ultimately, Colgate's attorneys will have their hands full for
some time to come, a constant reminder that the Greek house
acquisition is a controversy not yet put to bed.
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