Princeton University has hired one of the world’s largest law firms to work on a court challenge to the school’s tax-exempt status, a closely watched case that has implications for other un
By Philip Sean Curran, Staff Writer
Princeton University has hired one of the world’s largest law firms to work on a court challenge to the school’s tax-exempt status, a closely watched case that has implications for other universities around the country.
Simpson, Thacher & Bartlett, home to roughly 850 lawyers with offices in New York and around the globe, was brought in, the school confirmed Thursday. The firm’s clients include the likes of Microsoft, JP Morgan Chase, among others.
The university used the same firm several years ago when it had to defend a lawsuit involving the Robertson Foundation and the endowment for its public policy school.
University vice president and secretary Robert K. Durkee declined Thursday to answer questions about why the school is using the firm again or if the decision reflected any urgency or seriousness the school had about the lawsuit.
In this instance, Princeton residents have sued the school claiming that among other things that the university is essentially a profit-making entity in that it shares with its faculty proceeds of patent royalties and that 19 buildings on campuses are used for noneducational purposes.
In June, a New Jersey tax court judge rejected the university’s request to dismiss the case, a move the plaintiffs considered an important victory. Their attorney, Bruce I. Afran, who represents clients suing the university about the Dinky station in an unrelated matter, could not be reached for comment Thursday.
”We’re not going to have anything more to say about this case until it goes to trial, so the only thing I’ll say at this point is what I’ve said before — we don’t think there is any merit to any of the arguments that attempt to relate royalty payments to property tax exemption,” Mr. Durkee said in an email.
”The purpose of property tax exemption in New Jersey is to allow educational institutions like Princeton University to devote their resources to programs of teaching and research; our exempt properties are properties that support our educational mission, and we expect that properties that support our educational mission will continue to be exempt.”
The town is also a defendant in the case, as the suit claims the town’s tax assessor incorrectly listed those buildings as tax-exempt.
Town attorney Edwin W. Schmierer, who feels the town acted “correctly,” said another lawyer is handling the case for the municipality.