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Loeb Achieves Favorable Ruling for The Claremont Colleges in Real Property/Contract Dispute

Loeb & Loeb is pleased to announce that the California Court of Appeal ruled in favor of its client, The Claremont Colleges, in a long-running dispute with the Claremont School of Theology (CST). This dispute spans three separate cases and three appeals. 

In 1957, CST acquired land from The Claremont Colleges, subject to a promise that the land would be used for educational purposes only, and that The Claremont Colleges could repurchase the land, according to an agreed formula, upon the occurrence of certain triggering events. 

In a prior published decision, the Court of Appeal ruled in favor of The Claremont Colleges and directed entry of a judgment enforcing the educational use restriction, as well as The Claremont Colleges’ repurchase right, as equitable servitudes. 

In this latest ruling, the Court of Appeal affirmed that The Claremont Colleges’ repurchase right was triggered by no later than February 5, 2019, when CST purported to lease its property to a third party, Yalong Investment Group, LLC. 

“This case has been about one thing – protecting the integrity of the academic environment The Claremont Colleges created in 1925 and continue to promote today. These rulings ensure that this property will be forever used for not-for-profit educational uses, and in service of The Claremont Colleges’ unique educational mission. We couldn’t be more thrilled with that result,” said Loeb partner W. Allan Edmiston.