"The Alpha Omega House Corporation, made up of Sigma Chi alumni, filed a 65-page complaint in Santa Clara County Superior Court on Aug. 28. The suit accuses Stanford's board of trustees of breaching the university's founding grant, violating the terms of its decades-old ground lease with the AOHC, and failing to uphold the "implied covenant of good faith and fair dealing.""
"Sigma Chi was chartered at Stanford in 1891, making it one of the university's oldest fraternities. Its alumni organization entered into a ground lease with Stanford in 1937, constructing a 14,000-square-foot residence at 550 Lasuen Mall. In Neighborhood Magnolia - the tight-knit community designated for sophomores, juniors and seniors - the house is the only non-theme, non-Greek Row house. The building at 550 Lasuen housed Sigma Chi from 1938 until the fraternity was de-chartered in 2018."
Alpha Omega House Corporation, comprised of Sigma Chi alumni, filed a 65-page complaint alleging Stanford's board breached the university's founding grant, violated a decades-old ground lease, and failed to uphold the implied covenant of good faith and fair dealing. AOHC owned the 14,000-square-foot residence at 550 Lasuen Mall while Stanford owned the land under a 1937 ground lease. The house served Sigma Chi from 1938 until de-chartering in 2018 and later operated as a self-op. A 2020 ruling and 2021 settlement allowed the alumni board to keep the lease until its Aug. 31, 2023 expiration. AOHC alleges Stanford took the building and its estimated $46 million investment without compensation and invokes Jane Stanford's amendment.
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