• Saturday, February 18, 2012
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Princeton Has Spent $22-Million Defending Itself From Lawsuit by Donors' Heirs

Princeton University has spent $18-million on legal fees and $4-million on expert witnesses so far in a court battle over how it has used the proceeds of a large donation intended to benefit its Woodrow Wilson School of Public and International Affairs, according to The Trenton Times, a local newspaper.

Princeton was sued in 2002 by children of the late donors, Charles S. and Marie H. Robertson, who gave the university $35-million anonymously in 1961. The Robertson heirs say Princeton has misused the funds, which are now worth $750-million; Princeton denies the accusation. The money is held by the Robertson Foundation, whose board the university controls. A judge heard arguments for summary judgment in the case last fall but has yet to rule.

Word of Princeton’s legal fees emerged from a court fight with its insurer, the National Union Fire Insurance Company, a unit of the American International Group, stemming from the company’s insistence on capping reimbursable legal fees at $5-million. According to court documents, a New York state judge ruled for Princeton but has yet to issue a final order spelling out the terms of her opinion.

The Trenton Times also reported that the Robertson family had spent $10-million to $20-million on the legal battle with Princeton. —Erin Strout