Phi Kappa Psi files countersuit over house rental
The association seeks more than
$43,000 for months of back rent,
but tenants argue the lease ended
when they moved in January 2002
Jared Paben
Freelance Reporter
The Oregon Phi Kappa Psi Associa
tion has filed a countersuit against
seven former fraternity house tenants,
seeking $43,883.21 in lost rent from
an alleged breach of contract.
The countersuit comes in response
to a January lawsuit filed by the
lessees, who are seeking their
$15,000 security deposit withheld
after they moved out. Now, the heart
of the debate is whether those for
mer tenants owe lost rent money re
sulting from their early move on Jan.
10, 2002 — more than five months
before the date outlined in the letter
of intent.
The conflict began September 14,
2001, when Paul Kerege — a former
student and member of Pi Kappa
Phi, Alpha Omega Chapter Archon
— signed a letter of intent to rent a
fraternity house owned by the Ore
gon Phi Kappa Psi Association locat
ed at 729 E. 11th Ave. The letter stat
ed that members of Pi Kappa Phi
would live in the house from Sept.
15, 2001, until June 30, 2002, paying
$8,000 per month, beginning in Jan
uary. Specifically, the letter stipulat
ed the tenants would not pay rent
until the first of the year in exchange
for labor and repairs.
A document stating approval of
the letter of intent was then signed
by current University student Tyler
Saries, non-student Dan Chinock
and former University students
Aaron Week, Marc Weiss and Maco
Stewart. Current University student
Dwight Calwhite witnessed the doc
ument signing.
The tenancy went smoothly until
the first of the year, said attorney Sia
Rezvani, who represents Calwhite and
speaks for the former students. At that
point the tenants couldn't "drum up
enough money" to pay the full
month's rent, and instead paid
through Jan. 10, 2002, by forfeiting
part of their security deposit. Court
records confirmed the individuals
moved out Jan. 10.
Now, Rezvani is arguing there never
was a formal contract.
'There wasn't really a contract," he
said. "(Oregon Phi Kappa Psi Associ
ation's) position is that there was a
written contract. From our perspec
tives this was just part of the negotia
tions that would eventually become
part of the agreement. Based on
them, the defendants let (the ten
ants) move in."
Rezvani said the letter of intent was
simply an "intention for both parties
to enter a contract." The defendants
never signed the letter, he said, and
Oct. 1, 2001, "came and went, and
there never was a formal signed agree
ment." That left the tenants with the
default terms of Oregon law, making
it a month-to-month contract, he
said. Because the individuals paid a
prorated amount until Jan. 10, Rez
vani argues they were free from fur
ther obligation.
Attorney Scott McCleery, who rep
resents the Oregon Phi Kappa Psi As
sociation, filed a countersuit July 17.
He said the letter of intent "spelled
out the main parts" of the agree
ment, adding it was an agreement
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and his client is simply searching for
unpaid rent. He also said the tenants
never completed the repairs as
agreed in the letter.
"Our position is that they didn't
fix it up in the manner that they
promised," he said.
Calwhite said Rezvani advised him
not to comment on either case.
The tenants are suing the Phi Kap
pa Psi Association to obtain their
$15,000 security deposit on the
house, arguing the association wrong
fully withheld the deposit after the
tenants moved out in January. Rez
vani added that the association also
did not tell the tenants about the sta
tus of the deposit until after the 31
day legal deadline.
Rezvani is seeking the full deposit
amount, less $2,580.64 taken to pay
for January's rent. Also, he said the as
sociation failed to give any account
ing of the security deposit until Feb.
25 — 15 days after the deadline, ac
cording to Oregon law. As a result, he
said the association owed twice the
amount of the security deposit in ac
cordance with ORS 90.300, para
graph 13. That means the recovery
could be as much as $30,000.
Neither Phi Kappa Psi nor Pi Kap
pa Phi has existed on the University of
Oregon campus since 2000, said Shel
ley Sutherland, assistant director and
adviser at the Greek Life Office. The
Phi Kappa Psi Oregon Alpha Chapter
dissolved in 1999, and the Pi Kappa
Phi Alpha Omega Chapter left in
2000, she said.
But Rezvani insisted that the last
time Pi Kappa Phi Alpha Omega
Chapter existed as a recognized busi
ness entity was in the 1970s. Either
way, he said, it means that those who
signed the letter of intent represent
themselves, not a larger Pi Kappa Phi
organization.
"It's just a group of guys calling
themselves that," he said.
From here, the parties are exchang
ing documents they feel are relevant
to the case, McCleery said. If no deci
sions can be reached through that
process and the ensuing depositions,
the two sides may go to trial. If a trial
is necessary, it could be eight months
away, McCleery said.
Jared Paben is a freelance reporter
for the Emerald.
Grant
continued from page 1
project what the impact would be,"
Bickford said. "I don't feel comfort
able in making a reasonable predic
tion at this time."
She added that once more infor
mation is made available, the finan
cial aid office will make the data
available to students.
According to a statement in The
Chronicle of Higher Education by
Jeffrey Andrade — the U.S Depart
ment of Education's deputy assistant
secretary for post-secondary educa
tion — estimates are hypothetical at
this point, but he said the number of
students receiving the grant is likely
to increase.
Bickford said the financial aid for
mulas to determine eligibility use in
come-level cutoffs, which are de
pendent on factors such as the
number of people in a household,
student incomes and untaxed in
come available to the family.
"Family financial situations vary a
great deal — when students see a pub
lished 'income cutoff sometimes they
assume that they will not qualify and
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be very careful with this message and
don't publish income cutoffs."
Bickford said she hopes govern
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iest students.
"Some needy students do not see
higher education as an option for
themselves without this grant,"
she said.
Bickford added that some students
may feel they can't continue their
studies if the grants are eliminated.
Students are worried about what the
possible changes in grant disburse
ment mean for them at a time when
tuition and fees continue to rise.
ASUO Legislative Associate Gabe
Kjos, who himself receives a Pell
Grant, said reduction in aid can limit
higher education access.
"Access to higher education is our
highest priority," Kjos said. "To show
this, we are sending a delegation of
five to the annual United States Stu
dent Association meeting to make the
issue a national priority that all cam
puses will fight for."
Contact the reporter
at ayishayahya@dailyemerald.com.
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