Cases & Developments

Order affirming judgment in favor of the University. Plaintiff, The Pennsylvania State University, sued Alpha Upsilon Chapter of Beta Theta Pi Fraternity (Fraternity) for specific performance to exercise its right to repurchase a parcel of property after the Fraternity was suspended. In 1894, the University conveyed land to the Fraternity to construct a chapter house for use by active members. In 1928, the University repurchased the first parcel, and conveyed a second parcel for the same purpose via the “1928 Deed.” The 1928 Deed preserved the University’s right to repurchase, should the Fraternity cease to operate a house, occupied by active members. In 2017, after a member died from alcohol-related hazing activity, the Fraternity was suspended by its national organization, and the University required tenets to vacate the chapter house. The University investigated the alleged hazing and then revoked its recognition of the Fraternity for five years. Thereafter, the Fraternity refused to resell the property to the University, which sued. After the University prevailed in the trial court, the Fraternity appealed. The appellate court affirmed, finding that the mere potential of future recolonization and occupancy of the property by an alum’s non-member child did not constitute use under the 1928 Deed, thus triggering the University’s right to purchase the Property.