Judge says no jury trial in Robertson case, U. can spend capital gains

A New Jersey superior court judge issued rulings today on seven motions for summary judgement in the Robertson family's lawsuit against the University. The judge granted two of five University motions in full, partially granted another and also partially granted one Robertson family motion.

Mercer County Superior Court Judge Neil Shuster granted the University's request to throw out the Robertsons' demand for a jury trial. Shuster also granted the University's motion allowing it to use the capital gains made by the Robertson Foundation's endowment, as well as its dividends and interest payments. The plaintiffs claimed that the University is only allowed to spend dividends and interest.

A motion for partial summary judgment asks a judge to rule on a specific issue in order to simplify the issues at trial. A judge can also reserve judgment on the issue until trial.

Shuster reserved judgement on three of the motions presented to him: the University's requests to be accepted as the sole beneficiary of the Foundation, its motion that the Foundation's endowment continue to be invested by the Princeton Investment Company (PRINCO), and the Robertsons' motion saying that the defendants have a strict fiduciary duty toward the Foundation to use its assets solely to advance its mission.

Motions that have been denied summary judgement will now be decided at trial after the judge hears further testimony. A trial date has not yet been set.

This morning's ruling granted the Robertsons $62,000 in admitted overcharges by the University, but denied a ruling on almost $18 million in undergraduate program costs, faculty salaries and equipment depreciation. The family's motion had asked the judge to find that the admitted overcharges made by the University could not be balanced by Princeton's allegedly undercharging the Foundation at a later date.

The University filed a motion claiming that some of the events brought up by the Robertsons were past the statute of limitations, which was also partially granted.

The lawsuit — over the $880 million Robertson Foundation endowment that partially funds the Wilson School's graduate program –– dragged into its fifth year in September. The University alone has spent $22 million in legal fees on the case; representatives of the Robertson family could not immediately provide a total cost last night.

Charles '26 and Marie Robertson's children allege that the University has misused the Foundation's funds by ignoring the donors' original intent, which was to support the Wilson School's graduate program and place its graduates in federal government jobs, especially those in foreign policy. The University says that it has always abided by the original intent of the Robertson donation.

The family wants to change the Foundation's articles of incorporation to allow it to donate its money elsewhere. Additionally, the plaintiffs seek the return of $207 million they say was spent improperly, a claim the University denies.