Settlement Reached in Frat House Suit

After over a year of legal battles, the Sigma Chi fraternity reached a financial settlement with Pi Eta Speakers Associates on Aug. 1.

The dispute centered on the control of 43-45 Mt. Auburn St., a house Sigma Chi used until they were forced out in 2001 by Pi Eta—the original owner of the property.

“While of course Kappa Eta [Harvard’s Sigma Chi chapter] would love to have continued its residence at 45 Mt. Auburn, we are glad that the lawsuit is over,” said Sigma Chi President Jared M. Slade ’03.

The settlement of the lawsuit cleared the way for Pi Eta to sell the house to the Foundation for Civic Leadersh.

The non-profit corporation based in Cambridge purchased the house for $2.75 million.

Previously, several different Harvard offices, including the Office of the Dean of the College, had been interested in the property.

However, at the time of the purchase many of them had lost interest, according to Associate Dean of the College David P. Illingworth ’71.

The Pi Eta Speakers Associates had bought the home in 1976 for use by the now-defunct Pi Eta fraternity.

After tax foreclosure proceedings were begun against the property in 1996, Pi Eta reached an agreement with Sigma Chi that allowed Sigma Chi to take partial ownership of the house.

But since the relationship soured in early 2001 and Sigma Chi lost the house, the fraternity has been fighting for a home in the expensive Cambridge housing market.

The two parties settled their dispute out of court in a confidential settlement, and Sigma Chi will receive an undisclosed amount from Pi Eta.

While Slade was unable to comment on the details of the settlement, he said that the alumni association of the fraternity will have control over the settlement money.

The settlement could allow Sigma Chi to look for a new permanent home in Cambridge.

“Much like every other social group on campus without a home, we are interested in the possibility of finding a desirable location,” Slade said.

Under the original agreement, Pi Eta agreed to allow five members of Sigma Chi to serve on the 12-member Pi Eta Speakers Association Board for 10 years.

Contractually, Sigma Chi was supposed to gradually increase its membership on the board until Sigma Chi obtained full control of the board—and ownership of the house—in 2026.

In return, Sigma Chi would pay Pi Eta $200,000 in addition to making improvements to the house and performing general maintenance work.

But in 2001, Pi Eta decided to sell the house against the wishes of Sigma Chi.

On April 18, 2001 Pi Eta began procedures to amend their bylaws in order to remove Sigma Chi members from the board.

On April 19, 2001 Sigma Chi filed suit claiming that were entitled to ownership interest in the house since they had fulfilled their part of the contract. Pi Eta immediately filed countersuit.

The recent settlement concludes the two groups’ six-year contractual relationship.

“Personally, I have not had any relationship with the Pi Eta organization and harbor no negative feelings towards them. I have no inclination as to whether our paths will cross in the future,” Slade said.

—Staff Writer Katherine M. Dimengo can be reached at dimengo@fas.harvard.edu