Chronology of Litigation
Hellenic Am. Educ. Found. v. The Trustees of Athens College in Greece, No. 603770-07
Chronology of Significant Events
November 8, 2007
Counsel to the Hellenic American Educational Foundation (the “HAEF”) advises the Trustees of Athens College in Greece (the “Board of Trustees”) of its purported termination and demands repatriation of the endowment.
November 13, 2007
The Board of Trustees responds by inviting the HAEF to negotiate an amicable resolution to the parties’ dispute.
November 14, 2007
The HAEF files a three-count complaint (the “Complaint”) against the Board of Trustees seeking (1) a declaration that the Board of Trustees hold the endowment as custodians on behalf of Athens College; (2) preliminary and permanent injunction; and (3) imposition of a constructive trust.
November 14, 2007
The HAEF moves for an order to show cause for a preliminary injunction enjoining the Board of Trustees’ use of the endowment and imposition of a constructive trust over the funds.
November 29, 2007
The Court holds a hearing on the HAEF’s preliminary injunction motion. The Court resolves the HAEF’s motion by stipulation of the parties and recommends mediation to the parties.
December 6, 2007
The Board of Trustees answers the Complaint and files a five-count counterclaim seeking declaratory relief on the issues of unilateral termination (Count I) and ownership of the endowment (Count II) and alleging breach of contract (Count III), breach of fiduciary duty (Count IV), and tortious interference with contract (Count V).
February 13, 2008
The parties mediate before Michael Oberman. The mediation is terminated after the first of two scheduled days.
February 26, 2008
Pretrial conference before the Court (Justice Helen E. Freedman) during which both sides describes the motions they intend to make.
February 27, 2008
The Court files the order resolving the HAEF’s motion for a preliminary injunction by stipulation of the parties.
March 10, 2008
The parties agree by stipulation at the Court’s direction that the Board of Trustees will move for partial summary judgment on the issues of unilateral termination and ownership of the endowment, while the HAEF simultaneously seeks dismissal of the remainder of the Trustees’ counterclaims.
March 28, 2008
The HAEF moves to dismiss the Board of Trustees’ counterclaims on forum non conveniens and jurisdictional grounds, and the Trustees move for partial summary judgment on the issues of unilateral termination and ownership of the endowment.
April 2, 2008
The HAEF asks the Court to stay further briefing on the Board of Trustees’ motion for partial summary judgment pending determination of the HAEF’s motion to dismiss.
April 4, 2008
The Board of Trustees responds to the HAEF’s irregular request, asserting that the HAEF’s forum and jurisdictional arguments are not an impediment to the Court’s adjudicating the Trustees’ motion.
April 10, 2008
The Court denies the HAEF’s letter application for a stay.
June 12, 2008
The Court hears argument on the parties’ dispositive motions.
July 9, 2008
The Court denies the HAEF’s motion to dismiss and grants the Board of Trustees’ motion for summary judgment on the issue of unilateral termination. The Court holds that “the By-laws clearly contemplate continuation of both Athens College and joint administration. . . . For eighty-three years, the parties have operated under the By-laws and have maintained the School accordingly. Thus, any termination of the provision of the By-laws cannot be effected unilaterally, for to do so would violate the trust residing in and relied upon by both the founders and supporters of the institution. Under such circumstances either a mutual agreement or a Court approved procedure is necessary. For that reason, the termination action violates New York law and is thus ineffective.” Having determined the termination is ineffective, the Court stated that “it is premature to grant [the Board of Trustees’] application with respect to the Endowment,” and, therefore, reserved on the issue of ownership of the Endowment.
July 14, 2008
The Court files the July 9, 2009 order and opinion with the New York County Clerk.
July 23, 2008
Justice Helen E. Freedman is appointed to the Appellate Division, First Judicial Department.
September 5, 2008
Justice Freedman’s cases are assigned to Justice Barbara R. Kapnick.
September 15, 2008
The Board of Trustees extends the HAEF’s time to answer or otherwise respond to its counterclaims to October 15, 2008.
October 15, 2008
The Board of Trustees extends the HAEF’s time to answer or otherwise respond to its counterclaims to November 14, 2008.
October 17, 2008
HAEF proposes as a settlement the creation of a new Board of Trustees that includes five of its current members to be approved by the HAEF, which will have the right to veto all new members, and limits the Trustees’ function to fundraising pursuant to its 1926 charter.
October 29, 2008
The Board of Trustees rejects the HAEF’s settlement proposal.
October 29, 2008
The Board of Trustees serves Notice of Entry of the Court’s July 9, 2009 Order.
November 12, 2008
Plaintiff files a Notice of Appeal of the July 9, 2009 Order. The Notice of Appeal states that reversal of the Order is sought on the grounds that the Court erred by (1) holding that the HAEF does not have a right to unilaterally terminate its relationship with the Board of Trustees; and (2) dismissing plaintiff’s motion to dismiss on forum non conveniens grounds.
November 13, 2008
The HAEF answers the counterclaims by denying the material allegations and asserting numerous affirmative defenses. The HAEF denies that jurisdiction and venue are proper, that the bylaws and the MOU are valid and binding agreements, and that Board of Directors owes fiduciary duties to Athens College.
November 14, 2008
The Board of Trustees sends a letter to the members of the HAEF, stating that states that the Court held that plaintiff’s unilateral termination of the Trustees was ineffective; that the Trustees’ counterclaims were sustained; that the case would proceed to discovery; that, if the parties were unable reach an agreement on governance, the Court would dissolve their relationship “and perhaps even the school itself;” and that, “in the event of a court-ordered dissolution, there will be no winners, and the biggest loser will be Athens College.”
November 26, 2008
The HAEF holds its annual meeting in Greece.
December 19, 2008
The HAEF moves for leave to amend its complaint to add nine causes of action for: (1) declaratory relief that the HAEF has terminated its relationship with the Board of Trustees; (2) breach of fiduciary duty; (3) breach of contract; (4) conversion; (5) fraud; (6) unjust enrichment; (7) breach of the duty of good faith and fair dealing; (8) tortious interference with business and prospective business relations; and (9) prima facie tort. The HAEF seeks at least $100,000.00 in compensatory damages and at least $300,000.00 in punitive damages.
January 15, 2009
The parties agree by stipulation to adjourn the return date on the HAEF’s motion for leave to amend from January 16, 2009 to February 27, 2009.
February 3, 2009
The parties attend a pretrial conference before Justice Kapnick’s clerk. The parties agree on a discovery schedule and to resolve the HAEF’s motion for leave to amend by stipulation.
