Sigma Alpha Mu files lawsuit against Zeta Psi for breach of contract
Ilana Dunn | Staff Photographer
Sigma Alpha Mu filed a lawsuit against Zeta Psi on Friday, alleging Zeta Psi violated the housing contract between the two fraternities.
Sigma Alpha Mu, also known as Sammy, has rented Zeta Psi’s house, located at 727 Comstock Ave., since 2007. Zeta Psi decided to lease its house to Phi Gamma Delta, also known as FiJi, starting next fall.
The lawsuit is just the latest in a number of incidents that have heightened tensions between Zeta Psi and Sammy in the past year. The two fraternities also clashed regarding Zeta Psi’s desire to return to campus and alleged damages inflicted on the house by Sammy.
The lawsuit, filed by the Sammy Alumni Board (Etasam) against the Syracuse Association Zeta Psi, alleges Zeta Psi officials acted in “bad faith” toward Sammy by verbally agreeing to extend the lease contract to June 2015, yet instead signing a lease with FiJi, according to a copy of the lawsuit obtained by The Daily Orange.
Currently, Zeta Psi plans to lease its property to FiJi for three years starting next fall.
The Zeta Psi Fraternity of North America, the house’s national chapter, closed its SU chapter following the spring 2007 semester for multiple behavioral offenses.
Sammy and Zeta Psi entered into their original lease agreement in July 2007. The agreement was to last for an initial term of five years, starting August 1, 2007, through July 31, 2012, and allowed for multiple one-year extensions after the initial term.
But Zeta Psi’s new lease agreement with FiJi led Sammy to report the following damages in its lawsuit:
- Sammy is now unable to secure a single location to house fraternity brothers and is forced to advise the brothers to find their own individual housing
- Zeta Psi has “jeopardized” Sammy’s presence on campus
- Sammy believes the “intent was cause to permanent damage,” for which there is no economic recovery
“For a long time, we felt that Sammy had a pretty darn good deal,” said Stan Gorski, the president of the Syracuse Association of Zeta Psi. “But somehow, we entered into a stalemate. We did the best business move and what was best for the property.”
In the 2007 lease agreement, Sammy agreed to pay Zeta Psi $2,000 per month, Gorski said. He added that both parties understood the 2007 lease would terminate in 2013.
Jason Simon, a member of the Board of Directors for Etasam, said he and the fraternity disagree with Gorski’s assessment of the situation, and that Sammy is the lawful tenant of the house.
He declined to comment on the specifics of the lawsuit.
Multiple attempts to reach director of Fraternity and Sorority Affairs Eddie Banks-Crosson for comment were unsuccessful.
Issues first arose on Jan. 8 when Gorski mailed Simon a letter stating Zeta Psi would not extend the lease beyond July 2013. Gorski indicated in the letter a willingness to negotiate with Sammy to potentially extend the lease, according to the lawsuit.
Gorski and Simon came to a verbal agreement in mid-February that Sammy’s lease would be extended to June 2015 on the condition that Sammy would pay $12,500 per month as basic rent and the security deposit would increase to $25,000, according to the lawsuit.
During this time, Larry Leonard, a member of Etasam’s Board of Directors, began looking for other locations for the fraternity in the event the lease wouldn’t be renewed.
Leonard explored other housing options, but stopped these discussions after being notified a verbal agreement had been reached.
Zeta Psi does not enter into legal agreements verbally, Gorski said. He added that Zeta Psi notified Sammy about the lease in plenty of time for the fraternity to find another house.
“It was common knowledge that Sammy was looking for other places,” he said. “But it was also public that we were looking for other offers, as well.”
On March 19, a Zeta Psi official informed Sammy the fraternity would not extend the fraternity’s leasing contract because there was a “competing proposal” that offered more money.
Outside of the lawsuit, other issues have caused problems between Zeta Psi and Sammy.
Last fall, Gorski made a presentation to the Interfraternity Council, seeking approval of Zeta Psi’s reinstatement on campus.
During the meeting with the IFC, a Sammy brother on the board asked if Zeta Psi was engaging in fraternity activities, despite being on probation, according to the lawsuit.
Simon said in the affidavit that Zeta Psi didn’t receive favorable approval in its quest for reinstatement and blames Sammy — and the comment at the IFC board meeting — for its continued suspension.
Zeta Psi has been open about wanting to eventually return to campus, Gorski said. But, he said the property of the house and Zeta Psi’s return to campus are completely separate issues.
Additionally, the house has sustained “significant damage” during the past five years, Gorski said.
In the lawsuit, Sammy reported it had spent almost $100,000 in “repairs and restoration to enhance the condition of the building.”
The lease, Simon said in his affidavit, states the tenant performs repairs, not restorations. He added that many areas of damage predated their tenancy.
Gorski said Zeta Psi’s board hopes to work with Etasam regarding the property and future investments.
“Some of our alumni have had bad feelings on the damage to the house,” Gorski said. “Some of the damage is unimaginable. We realize that kids will be kids, but this house is also a business.”
FiJi is not concerned about Zeta Psi’s eventual return to campus, said Erich Grundman, FiJi’s former president.
“That’s their goal, and we completely understand that,” he said. “That’s between them and the university. Right now, we’re just focusing on being good tenants.”
Frank Woodworth, vice president of housing for FiJi, said the fraternity has no comment on the current litigation between Sammy and Zeta Psi. Right now, the fraternity is concentrating on moving into its own house next fall.
Said Grundman: “It’s a pride thing. The fact that we can point to 727 Comstock and call it our house and display our letters is a huge deal for us.”
Published on April 2, 2013 at 1:46 am
Contact Meredith: mhnewman@syr.edu | @MerNewman93