Ending Legal Dispute Over Fraternity House Purchases Nears Resolution
WILLIAMSPORT — The contentious legal battle surrounding the sale of a former Penn State fraternity house, linked to the hazing death of pledge Timothy Piazza in 2017, may soon conclude. U.S. Middle District Judge Matthew W. Brann was informed on Tuesday that the involved parties have reached a settlement agreement in principle through mediation. The Penn State Board of Trustees is expected to review this agreement during its meeting in July.
The dispute primarily centers on Donald G. Abbey, a former member of the now-disbanded Alpha Upsilon chapter of Beta Theta Pi, who filed suit to reclaim over $10 million loaned for major renovations on the fraternity house. Following Piazza’s tragic death, the fraternity lost its recognition and was subsequently disbanded. As Penn State looks to reacquire the North Burrows Road property, a Centre County judge previously ruled that the university had the right to repurchase, based on a 1928 deed.
Abbey’s concerns revolve around receiving adequate repayment, fearing that the compensation would fall significantly short of his loan amount. He cites a past representation by former Penn State Vice President Vicky Triponey, who indicated that the university had no intention of seizing the house, which Abbey claims misled him into making the loan.
Abbey’s lawsuit is distinct from a wrongful death suit filed by Piazza’s parents, who allege that fraternity members did not adequately address their son’s severe injuries. They reached a resolution with Penn State without pursuing litigation against the university. Meanwhile, settlements have also been established with several fraternity members involved in the case. The resolution of their criminal charges has delayed proceedings in the Piazza case.
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