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November 28, 2006

First Day Ends in Court Proceedings Over Donation to Princeton, With No Rulings

The legal battle over a gift to Princeton University that’s now worth hundreds of millions of dollars moved to court today for the first of two days of arguments in the Superior Court of New Jersey. The judge recessed the proceedings this afternoon without issuing any rulings.

The lawsuit was filed in 2002 by the children of the late donors, Charles S. and Marie H. Robertson, who gave Princeton $35-million anonymously for its Woodrow Wilson School of Public and International Affairs. The money was held by the Robertson Foundation, whose board Princeton controls. In an increasingly bitter dispute, the Robertson heirs accuse the university of misusing the funds, which are now valued at more than $750-million, and of not honoring the intent of their parents’ donation.

The case is one of the most closely watched in the nonprofit world and will probably not conclude for months or even years to come. The arguments being heard this week by Judge Neil H. Shuster concern a number of technical motions for partial summary judgment filed by both sides in the suit.

The motions heard today included one that asked that Princeton be declared the sole beneficiary of the Robertson Foundation and retain its dominance of the foundation’s board. Another motion asked that Princeton’s investment-management company continue to manage the assets of the foundation, under the supervision of the foundation’s investment committee.

The Robertson heirs have recently created a Web site about the case. Princeton too has created a site to update the case as it proceeds.

Posted on Tuesday November 28, 2006 | Permalink |