Part of the dispute arose from capital improvements that Sigma Chi promised to make—while Pi Eta says that the improvements never rose to the promised level, Sigma Chi says it surpassed the expected level of work and investment.
When the Pi Eta board members announced last August that they wished to end the relationship, they promised to reimburse Sigma Chi for any out-of-pocket expenses it derived from the improvements.
Sigma Chi board members also refused to resign from the board when Pi Eta voted to end the relationship—and Sigma Chi challenged the vote as a breach of contract before walking out of the meeting.
And while a representative of Sigma Chi and Pi Eta alumni approved the February listing of the house with a real estate broker, Sigma Chi argues that the listing was not consensual but only a move to remain cooperative while it worked to halt the board’s move. Sigma Chi argues that its “ownership interests” in the house would preclude a sale or at the very least force a sharing of the profits.
The Pi Eta board eventually moved to enter into a purchase agreement for $3.3 million with the Cambridge-based Carr Foundation, a non-profit founded by Internet millionaire Gregory C. Carr, a Kennedy School of Government (KSG) alum.
Earlier this year, the Carr Foundation gained national attention for buying the old headquarters of the Aryan Nations in Idaho to convert it into a human rights museum.
Carr, the former chair of Prodigy, also donated $18 million to the fund the Carr Center for Human Rights at KSG—the largest donation ever by a KSG alumnus.
Neither Carr nor anyone from the Carr Foundation could be reached for comment last night.
—Staff Writer Garrett M. Graff can be reached at ggraff@fas.harvard.edu.