College Allegedly Defrauds 98-Year-Old Man

Chapman University allegedly used undue influence to persuade a 98-year-old man to donate $12 million for a science building, according to a claim by the man and his wife. 

James and Catherine Emmi said they first got on Chapman’s radar in January 2008 when James made a $50,000 cash donation to a fundraiser for the university’s new Center for Science and Technology.  Shortly thereafter, Chapman President James Doti began inviting the Emmis to concerts, lunches, and other events at the university so he could ask for additional donations. 

In April 2012, James Emmi donated an additional $450,000 in an estate pledge, in exchange for having a building named after him.  Lather that year, Chapman sent James another pledge proposal offering additional naming privileges in exchange for a $5 to $10 million investment over ten years.  At the time, James rejected the proposal out of concerns for his financial future.  However, Chapman continued to hound the Emmis for donations and according to the complaint, “preyed on plaintiff James for large donations against his wishes, because they knew that James was more susceptible to inducement and confusion.” 

Finally, after Chapman’s continual aggressive tactics, James agreed to donate money.  Chapman drew up an agreement committing them to an irrevocable $12 million donation due in full on December 31, 2016.  Yet, the Emmis say the agreement is invalid because Chapman previously valued the naming privilege at $5 million in earlier pledges, but sought a $12 million donation in exchange for that privilege in the 2013 agreement. 

The Emmis seek an order vacating James’ $12 million donation, restitution of the $3 million paid on the pledge agreement, and compensatory, special and punitive damages for breach of contract, fraud and deceit, unjust enrichment, unfair business practices, and welfare and probate code violations.  Furthermore, they want a declaration that Chapman has no right to the remaining $9 million and an injunction preventing it from enforcing the terms of the agreement.

See Rebehah Kearn, Aged Donor Claims College Squeezed Him, Courthouse News Service, Feb. 9, 2015.