Cases & Developments

Memorandum and Order granting-in-part and denying-in-part Defendant’s Partial Motion for Summary Judgment. Plaintiffs, two foundations and one benefactor who had committed $100 million to the University of Chicago to establish a named Institute with related programming, brought contract and fraudulent inducement claims against the University following disputes regarding Institute staffing and programing. The court permitted plaintiffs to proceed on their claim related to faculty hires, finding that although the Grant Agreement provided plaintiffs no “role or authority with respect to making appointments,” the University is nevertheless obligated to use the grant for purposes consistent with the Institute’s stated mission. The court also permitted plaintiffs to proceed on their fraudulent inducement claim alleging that the University misrepresented the extent to which it would contribute funding for salaries and student support rather than operate the Institute as a standalone entity on a perpetual basis. It dismissed plaintiffs’ claim that the University did not develop the agreed upon curriculum, finding that language in recitals stating that the Grant would be used to “create educational programs” did not preclude the University from offering existing courses through the Institute, noting that the operative language merely required the University to offer a specified number of courses.