Following the suspension of the University’s chapter of Sigma Alpha Mu by their international board for damages to the Treetops Resort, the national organization has also filed a lawsuit over usage of the chapter’s bank account.
The lawsuit, filed March 19, seeks to have control over the chapter’s bank account awarded to the national organization, the Ann Arbor News reported.
Four members of the fraternity — Business sophomore Joshua Kaplan, LSA sophomore Andrew Krowitz, LSA sophomore Craig Markman and LSA junior Eric Shugan — are named as defendants. The chapter generally, referred to as the Sigma Iota chapter, is also named as a defendant.
According to the lawsuit, the chapter had told the national organization they would not return funds from their account unless the chapter was allowed to use them to pay off claims to Treetops. As of the last estimate from Treetops general manager Barry Owens, damage to the resort totaled roughly $430,000.
The lawsuit alleges that the chapter’s constitution requires it to return all property and assets to the national organization.
Though court records show an initial cause hearing is set for April 2, both SAM local spokesperson Alan Greenberg and Ann Arbor attorney John Minock, who is representing several members of the fraternity, told The Ann Arbor News that the issue might be resolved without going to trial.
Greenberg said SAM’s treasurer is already beginning the process of turning over control of the accounts and is not planning to contest the national organization any further.