The Wall Street Journal: Juicio contra Princeton para revocar donación

Ruling May Cost PrincetonMillions if Heirs Win Case

By JOHN HECHINGEROctober 26, 2007; Page B6
A New Jersey judge cleared the way for a trial that will decide whether the children of a major donor to Princeton University can take back a gift now valued at $880 million and give it to other charities.

The lawsuit -- pitting the Ivy League school against the offspring of an alumnus who gave to its prestigious Woodrow Wilson School of Public and International Affairs -- is the biggest dispute over donor intent in higher education and has riveted big givers and university fund-raising offices.

The children of the late Charles and Marie Robertson, who donated $35 million in 1961, say Princeton failed to use the money for its intended purpose: training graduate students at the school to serve in federal government, particularly in foreign relations. Through investment growth, the gift is now valued at $880 million, almost 6% of Princeton's $15.8 billion endowment.
The current generation of Robertsons, heirs of the A&P supermarket fortune, claim Princeton spent $207 million outside the mission authorized by the gift, which is kept in a separate foundation. The university says it has been faithful to the terms of the gift, though it has acknowledged errors in a small number of cases.

Princeton made a pretrial motion seeking a ruling that the school, as a matter of law, was intended to be the "sole beneficiary" of the gift. A ruling in its favor would have eliminated the possibility of losing the entire gift.

But yesterday, New Jersey Superior Court Judge Neil H. Shuster denied the motion and said Princeton could lose all of the money if the Robertsons prove their case. He added that such an outcome "may only be appropriate to remedy the most egregious and nefarious of circumstances," which remains to be proved at trial.

In another motion, the Robertsons argued that Princeton had acknowledged in court to misspending more than $17 million, and they demanded that sum be returned without a trial. Judge Shuster said the university should return only $62,500 -- which the school yesterday termed a "clerical error" -- but left the rest to be decided at trial. In March, Princeton University said it would reimburse $782,375 to the foundation because of "inadequate disclosure" to the Robertsons.

Ronald Malone, the lead attorney for the Robertsons, called the judge's rulings "a huge victory for donors everywhere." Douglas S. Eakeley, Princeton's lawyer, said the judge's reasoning had largely been favorable to the school and that university officials would prove at trial they had been "faithful stewards" of the Robertson gift and "had magnificently advanced" its mission.
The Robertsons have spent about $20 million in pursuing the lawsuit, and Princeton has spent $22 million defending itself. No trial date has been set.
Write to John Hechinger at john.hechinger@wsj.com