LOS ANGELES (Legal Newsline) - A former Penn State football player is suing over the sale of a frat house he helped to fund.
Donald G. Abbey filed a lawsuit April 9 against The Pennsylvania State University (Penn State) in Orange County Superior Court in California. The case was removed to federal court on June 6.
Abbey alleges that Penn State defrauded him regarding over $10 million in loans he made for renovating a fraternity house on the university's campus.
Abbey claims that Penn State executives assured him they had no intention or legal right to take over the property, which led him to provide significant financial support for its renovation.
However, a recent court verdict ordered the transfer of ownership of the fraternity house to Penn State, contradicting those assurances and triggering Abbey's repayment obligations under a funding agreement with Alpha Upsilon Chapter of Beta Theta Pi, the suit says.
The lawsuit includes causes of action for fraudulent misrepresentation, negligent misrepresentation, intentional interference with contractual relations, unjust enrichment, promissory estoppel, and declaratory relief. Abbey seeks monetary damages exceeding $75,000 and other forms of relief.
Scott Leipzig of Allen Matkins law firm represents the plaintiff.