Kappa Alpha Order Prevails Against Break Away Group

Jim Ewbank

In July 2001, most of the members of the Omicron Chapter of Kappa Alpha Order at the University of Texas (while under suspension and on involuntary alumni sta­tus) voted to break away from KAO National and form a local independent group called UT Texas Omicron. At the same time, the alumni Board of Directors of the KA House Corpora­tion also voted to withdraw from National, cancel the Lease with the KA Chapter, and amend the Articles of Incorporation to change the purpose clause to exclude KA’s from living in the house. The former members continued to live in the house, use the contents and equipment, and moved the $159,000 in bank accounts to the new rogue group’s name.

KAO, an Alumni Receivership Committee and alum­ni of the Omicron Chapter, filed suit in September 2011 to return the furniture and equipment, bank accounts, and occu­pancy of the house for the use and benefit of the Omicron Chapter of KAO. After extensive expense and discovery, and multiple Motions for Summary Judgment, a jury trial ensued in Austin, Texas. At the end of 1-1/2 weeks of trial, the jury found in favor of KAO and the Alumni Receivership Commit­tee on all counts – conversion, unjust enrichment, damages of $205,000, KAO was not in breach of its own Laws, and the vote of the House Corporation Board was null and void.

The Court also found that the former chapter mem­bers and alumni House Corporation Board members had vio­lated their membership agreements (Oaths, Charter, Constitu­tion and Bylaws) by taking votes contrary to the best interests of KAO. The case included complex issues involving whether such agreements constitute enforceable contracts, the effect of a void vote of the members and the alumni Directors, and in­terpretation of governing documents that did not clearly set out reversionary language in the event a chapter or House Corpo­ration decides to withdraw from the national organization.

KAO was vindicated in its efforts to prevent the rogue group from taking the property that rightfully belonged to the Omicron Chapter of KAO. At this time, the Court will determine if attorney’s fees will be awarded against the rogue group and the House Corporation.