Sorority Chapter at U. of Utah May Close April 30

[lake]

Originally Posted by exlurker

Update: Similar Lawsuit, Delta Delta Delta and U. of North Dakota House

A situation similar to the one concerning the U. of Utah Tri Delta house is going on in North Dakota. The chapter there was closed; now the question concerns the house. The August 11, 2006 Grand Forks [I[Herald[/I] has an article:

http://www.grandforks.com/mld/grandf...s/15247819.htm

At least one other paper, the Bradenton (FL) Herald, also has the article posted:

http://www.bradenton.com/mld/bradent...n/15247819.htm

Wow. I hadn't heard that the ND chapter house was also being disputed. This chapter is a couple of hours away from me and I did read statements from those members in a local publication basically saying, "It's our house" when they closed. My first thought was, "Uh oh."

I hope they do re-open at ND someday. I've met a few alumnae from there and they're just the nicest women.

[exlurker]

Update November 30, 2007: Judge Rules in Utah Tri-Delta House Ownership Case

A Salt Lake City newspaper has posted this article:

http://www.sltrib.com/news/ci_7597736


. . . a 3rd District Court judge ruled that a Greek Row house belongs to it's [sic] national organization, Tri-Delta.
. . . Tri-Delta opted to close its U. chapter, Theta Phi, citing recruitment issues in 2006.
. . . The home was appraised in 2006 at about $750,000, and is currently being rented privately, Malouf said.
It's unclear whether Theta Phi House Corp. will appeal Quinn's decision. . . .

[SWTXBelle]

I can't speak to the specifics of Tri-Delta, but in most cases I believe it is pretty straight forward - the house and all assets will revert to the (inter)national org should the chapter fold.
Not that I don't know of cases where alumnae came in and swiped stuff from the chapter upon closing, but I digress . . . .

[SthrnZeta]

I would think that if the house belonged to the Org's Housing Foundation, then if they choose to close the chapter, the house still belongs to them and they have the right to sell it for whatever they choose. Where does the Univ. get off saying they should get the proceeds? Makes no sense to me... And I could definitely see the org wanting to get all they could out of a chapter they closed - especially if they closed it for reasons of low membership (low funds coming in). Any org would do the same - they are, afterall, a business as well as a sisterhood.

[irishpipes]

Originally Posted by SthrnZeta

I would think that if the house belonged to the Org's Housing Foundation, then if they choose to close the chapter, the house still belongs to them and they have the right to sell it for whatever they choose. Where does the Univ. get off saying they should get the proceeds? Makes no sense to me... And I could definitely see the org wanting to get all they could out of a chapter they closed - especially if they closed it for reasons of low membership (low funds coming in). Any org would do the same - they are, afterall, a business as well as a sisterhood.

I think the dispute is between Tri Delta's local housing corporation and their international organization - not the University. I think it is commonplace now for NPC groups to include a dissolution clause in corporation bylaws stating that if the chapter closes the assets revert back to the international organization, but probably there are older chapters without such clauses, hence the dispute.

[TSteven]

Originally Posted by SthrnZeta

I would think that if the house belonged to the Org's Housing Foundation, then if they choose to close the chapter, the house still belongs to them and they have the right to sell it for whatever they choose. Where does the Univ. get off saying they should get the proceeds? Makes no sense to me... And I could definitely see the org wanting to get all they could out of a chapter they closed - especially if they closed it for reasons of low membership (low funds coming in). Any org would do the same - they are, afterall, a business as well as a sisterhood.

The university has no say in this. The case is between the Theta Phi Housing Corporation and Delta Delta Delta IHQ. (Reread the article and/or exlurker's post.)

Theta Phi House Corp. officials argued that because money to build and maintain the home was raised and used within Utah, under state statute they are guaranteed ownership of the home, Malouf [Colleen Malouf, corporation officer for Theta Phi House Corp.] said.

"That's what we were basing our response on. Tri-Delta national never put any money on this chapter house," she said. "[The judge] didn't even look at the main part of our argument."

I'm sure some of our GC lawyers here can help out, but is the ruling based on the understanding that the Theta Phi House Corp. is acting on behalf (i.e. raising funds) of Delta Delta Delta as a whole? It seems to me that unless specific individuals - and only those individuals - are listed as the Theta Phi House Corp., then the House Corp. *is* Delta Delta Delta.

If Tri-Delta sells the home, the national group would hold those funds for 10 to 15 years to help establish another local sorority chapter, "if that looked like it was going to be viable," [Delta Delta Delta attorney John] Lund said.

I am pleased to see the funds will be held to help bring Delta Delta Delta back. That is a wonderful policy.

[TriDPrincess]

So sad

[SthrnZeta]

Thanks Irish and TSTeven, that makes a lot more sense. Would the money be held to rebuild Tri-Delta on that specific campus though, or a colony elsewhere?