Rider University has initiated a legal malpractice lawsuit against Montgomery McCracken Walker & Rhoads LLP, alleging the firm’s inadequate legal counsel led to the loss of a $42 million property in Princeton, New Jersey. The university contends that the law firm failed to secure clear title to the Westminster Choir College (WCC) campus during Rider’s 1991 merger with WCC, resulting in protracted legal disputes and financial setbacks.
In 1935, philanthropist Sophia Strong Taylor donated the 23-acre Princeton property to WCC with the stipulation that it be used for training ministers of music. The deed included a reversionary clause stating that if the property ceased to serve this purpose, ownership would transfer to Princeton Theological Seminary. In 1991, facing financial difficulties, WCC merged with Rider University. Rider now claims that Montgomery McCracken, which represented the university during the merger, failed to address the reversionary clause adequately, leaving the title encumbered and vulnerable to future claims.
The issue came to a head in 2017 when Rider announced plans to sell the Princeton campus. Princeton Theological Seminary filed a lawsuit asserting its right to the property under the original deed’s terms. After years of litigation, the Municipality of Princeton acquired the property through eminent domain for $42 million in April 2025. A subsequent settlement allocated $13 million to Rider and $29 million to the Seminary. Rider argues that the law firm’s oversight directly led to these financial losses and the inability to capitalize fully on the property’s value.
In response, Montgomery McCracken has filed a motion to dismiss the malpractice claims, asserting that the statute of limitations has expired and that Rider’s allegations lack sufficient legal basis. The firm maintains that it fulfilled its professional obligations during the 1991 merger and that any subsequent issues arose from Rider’s decisions and external factors beyond the firm’s control.
This lawsuit unfolds against the backdrop of Rider University’s ongoing financial challenges. In recent years, the university has faced declining enrollment, leading to faculty layoffs and budget cuts. To alleviate financial pressures, Rider has engaged in various asset sales, including a $10 million deal with Mercer County involving the sale of 56 acres of land and a facilities use agreement. The outcome of the malpractice suit could have significant implications for Rider’s financial recovery efforts and the accountability of legal counsel in complex institutional transactions.