Rider University Sues Former Law Firm for Alleged Malpractice in Failed $42 Million Land Transaction

Rider University has initiated legal proceedings against its former law firm, Montgomery McCracken Walker & Rhoads LLP, alleging malpractice in connection with a failed $42 million land transaction. The lawsuit, filed in New Jersey state court, centers on the university’s ownership of a 23-acre property in Princeton, previously home to Westminster Choir College.

In 1991, facing financial difficulties, Westminster Choir College merged with Rider University. The merger was facilitated by legal agreements that aimed to preserve Westminster’s mission and ensure Rider’s ownership of the property. However, complications arose due to stipulations set by the original donor of the land, Sophia Strong Taylor, who had designated Princeton Theological Seminary as a steward of the property. Taylor’s conditions specified that if Westminster ceased to operate as a choir college, ownership would revert to the Seminary. ([planetprinceton.com](https://planetprinceton.com/2018/02/20/princeton-theological-seminary-files-suit-to-stop-sale-of-westminster-choir-college/?utm_source=openai))

In 2018, Princeton Theological Seminary filed a lawsuit against Rider University to prevent the sale of the Westminster property, asserting that the sale would violate the original donor’s conditions. ([planetprinceton.com](https://planetprinceton.com/2018/02/20/princeton-theological-seminary-files-suit-to-stop-sale-of-westminster-choir-college/?utm_source=openai)) This legal challenge culminated in the Municipality of Princeton acquiring the property through eminent domain for $42 million in April 2025. ([dailyprincetonian.com](https://www.dailyprincetonian.com/article/2025/04/princeton-news-town-acquisition-westminster-choir-college?utm_source=openai))

Rider University contends that Montgomery McCracken failed to adequately secure its ownership rights during the 1991 merger, leading to the loss of the property. The university is seeking compensation for the property’s value, legal fees, and other related expenses. ([theridernews.com](https://theridernews.com/wp-content/uploads/2025/04/49-COMBINED-1.pdf?utm_source=openai))

In response, Montgomery McCracken has filed a motion to dismiss the malpractice claims, arguing that the allegations lack sufficient legal basis. ([law360.com](https://www.law360.com/articles/2486266?utm_source=openai))

This legal action comes at a challenging time for Rider University, which has been grappling with financial difficulties. In March 2026, the university announced a land acquisition agreement with Mercer County, selling approximately 56 acres for $8.5 million to preserve open space and provide the university with needed cash flow. ([rider.edu](https://www.rider.edu/about/news/mercer-county-and-rider-university-announce-land-acquisition-agreement?utm_source=openai))

As the case progresses, it underscores the complexities of legal obligations tied to property donations and the critical role of thorough legal counsel in managing institutional assets.