Town Names Special Counsel in Princeton University Lawsuit

Princeton, NJ -- Martin Allen will act as Special Counsel for the town in the citizen lawsuit concerning Princeton University’s tax exempt status, Planet Princeton reports.

The hiring was approved by a 5-0 vote of council Monday night, according to the report.

Allen successfully represented Morristown in a similar case involving Morristown Medical Center. The judge is also the same in that case, in which he ruled the medical center was not tax exempt for three years.

Although the medical center is a non-profit and therefore tax exempt, the businesses and entities inside of it, including doctors and practices, were not non-profit.

The medical center thus will end up paying $15.5 million in taxes to the town over the next decade.

Allen’s hiring comes after the judge ruled that the burden of proof to show that it should be considered tax exempt is on Princeton University, according to the report.

The lawsuit challenges the tax-exempt status of some of the University’s buildings that are used for commercial use, such as eateries.

The University is also being accused of acting like a for-profit institution, including holding a licensing agreement for a chemotherapy drug.

The town has also been named as a defendant in the lawsuit.