You are on page 1of 42

IN THE UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF TEXAS


AUSTIN DIVISION

SIGMA ALPHA EPSILON §


FRATERNITY, INC. §
§
Plaintiff, §
§
VS. §
§ CIVIL ACTION NO. 1:18-cv-852
SIGMA ALPHA EPSILON, §
TEXAS RHO CORPORATION; and §
SIGMA ALPHA EPSILON TEXAS RHO §
HOUSE CORPORATION §
§
Defendants. §

PLAINTIFF’S ORIGINAL COMPLAINT AND JURY DEMAND

Plaintiff SIGMA ALPHA EPSILON FRATERNITY, INC. and for its Original Complaint

and Application for Equitable Relief against Defendants, SIGMA ALPHA EPSILON TEXAS

RHO CORPORATION and SIGMA ALPHA EPSILON TEXAS RHO HOUSE

CORPORATION, would respectfully show the following:

I. PARTIES

1. Sigma Alpha Epsilon Fraternity, Inc. (“SAE”) is an Illinois not-for-profit

corporation.

2. Defendant Sigma Alpha Epsilon, Texas Rho Corporation (“Texas Rho Chapter” or

the “Chapter”) is a Texas non-profit corporation with its principal place of business in Austin,

Texas. The Texas Rho Chapter was the Chapter Collegiate of the SAE Fraternity for the University

of Texas at Austin.

3. Defendant Sigma Alpha Epsilon Texas Rho House Corporation (“Texas Rho

House”) is a Texas non-profit corporation with its principal place of business in Austin, Texas.

1
Texas Rho House is the owner of the Texas Rho Chapter house and the real property located at

2412 Pearl Street, Austin, Texas 78705.

II. JURISDICTION AND VENUE

4. This Court has federal question jurisdiction pursuant to 28 U.S.C. § 1331 and 15

U.S.C. § 1121, and supplemental jurisdiction of the state law claims pursuant to 28 U.S.C.

§1367(a). SAE seeks money damages and additional equitable relief against Texas Rho Chapter

and Texas Rho House (collectively, “Texas Rho”). The Court has personal jurisdiction over the

Defendants and venue is proper in this District pursuant to 28 U.S.C. § 1391 because Defendants’

principal locations are within this District and all or a substantial part of the events or omissions

giving rise to this action occurred in Travis County, Texas.

III. FACTUAL ALLEGATIONS COMMON TO ALL CLAIMS

A. SAE’s Trademarks

5. SAE is a fraternal organization that operates nationwide to provide men the

leadership, scholarship, service, and social experiences they need to excel both during college and

after college graduation. The mission of SAE is advancing the highest standards of friendship,

scholarship and service for its members throughout life. Through its educational and leadership

programming, SAE seeks to foster personal development of its members, including leadership,

scholarship, citizenship and moral responsibility so they can set a positive example in today’s

society.

6. SAE was founded on March 9, 1856, and has continuously grown and expanded to

become the third largest fraternal organization in the United States. SAE currently has 212

Chapters Collegiate and 9 colonies for a total of 221 groups across the country, with in excess of

2
12,000 undergraduate members. 334,727 members have been initiated into SAE since its founding

in 1856, and there are 239,158 living alumni.

7. No SAE Chapter Collegiate may be organized or re-organized except by virtue of

a charter granted by SAE.

8. SAE uses numerous trademarks in interstate commerce in connection with its

marketing efforts, educational programming, scholarships, community service endeavors, and

leadership opportunities. Many of these trademarks are registered with the United States Patent

and Trademark Office (“USPTO”). These registered trademarks include: the SIGMA ALPHA

EPSILON word mark (Registration No. 2,665,456); the  design only mark (Registration No.

0,538,680); the stylized SAE design plus words mark (Registration No. 2346560); the Sigma

Alpha Epsilon shield design only mark (Registration No. 0,617,623); the  laurel shield design

plus words mark (Registration No. 1,706,605); and the TRUE GENTLEMEN word mark

(Registration No. 2,674,447) (collectively, the “SAE Marks”).

9. The colors royal purple and old gold, along with the symbol of a lion are

unregistered, but are marks which are inherently distinctive in identifying SAE.

10. The SAE Marks have been continuously used in interstate commerce (and

worldwide) in connection with SAE fraternity for decades, and some of them have been used

continuously for more than a century.

11. The SAE brand conveys the benefits, uniqueness, and quality of SAE’s fraternal

organization and the educational and leadership programming it offers.

12. The SAE Marks are inherently distinctive. In the alternative, because of SAE’s

exclusive and extensive use of the SAE Marks, they have acquired considerable value and have

become extremely well known to the general public as identifying and distinguishing SAE

3
exclusively and uniquely as the source organization to which the SAE Marks are applied. Thus,

SAE’s Marks have acquired secondary meaning and distinctiveness.

13. The SAE Marks are used uniformly and consistently nationwide in every Chapter

Collegiate and forum associated with SAE, as well as in every periodical, publication, and

certificate issued by SAE.

14. SAE has successfully built substantial goodwill in connection with its SAE brand

nationwide.

15. SAE was the first large, national fraternity to eliminate pledging for all of its

Chapters Collegiate.

16. SAE was the first North-American Interfraternity Conference fraternity to hire a

Director of Diversity & Inclusion, who is responsible for overseeing development, promotion, and

implementation of strategies that lead to enhanced diversity within the SAE organization.

17. Additionally, SAE is a sponsor of the national, anonymous anti-hazing hotline at

1-888-NOT-HAZE.

18. SAE’s magazine, The Record, was voted Greek Magazine of the Year in 2011, and

has earned more than 80 awards for excellence in the past ten years.

19. In addition to being a leader among fraternity organizations for positive social

progress, publishing periodicals, and advertising to increase its ever-growing membership base,

SAE also organizes many charity events, such as The True Gentleman Day of Service. SAE

partners with Global Youth Service Day for this event, which results in approximately 16,000

hours of service to the community each year.

20. SAE also formed a national, preferred partnership with Children’s Miracle Network

Hospitals in 2001 and has included this network of hospitals in a majority of SAE’s community-

4
service and fundraising projects. Organization-wide, SAE has helped raise more than $800,000

for the Children’s Miracle Network Hospitals.

21. As a result of SAE’s efforts, SAE and the SAE Marks are well known and famously

associated with SAE’s fraternity, education, leadership, scholarship, and community services.

Since its formation in 1856, SAE has spent countless dollars, but not less than hundreds of millions

of dollars, investing in and protecting the SAE brand. SAE’s 221 affiliated groups, more than

12,000 undergraduate members at almost every major university, and 334,727 total initiated

members spread across the country have led it become the third largest fraternity in the United

States.

22. Additionally, SAE and the SAE Marks are widely recognizable as an indicator of

SAE’s “The True Gentleman” creed, the purpose of which is to make the global community better,

as well as its mission which focuses on “advancing the highest standards of friendship, scholarship,

leadership, and service for our members throughout life.”

23. SAE has been careful, skillful, and diligent in conducting its business and

maintaining uniform standards of high quality in its chapters and forums. As a result of these

efforts, the SAE marks and the SAE name have acquired a public acceptance and reputation,

thereby creating a very valuable public goodwill that inures to SAE’s benefit.

24. Texas Rho had actual notice of SAE’s rights in its trademarks through the issuance

of its charter and by communications with SAE, and had constructive notice of SAE’s federally

registered trademarks under 15 U.S.C. § 1072, which states “Registration of a mark on the

principal register provided by this chapter or under the Act of March 3, 1981, or the Act of

February 20, 1905, shall be constructive notice of the registrant’s claim of ownership thereof.”

5
B. Texas Rho’s License to Use SAE’s Trademarks was Revoked

25. The Texas Rho Chapter of SAE at the University of Texas at Austin was issued a

charter by SAE on February 9, 1882. The issuance of the charter to the Texas Rho Chapter of SAE

gave Texas Rho a revocable license to use SAE’s registered and un-registered trademarks, as well

as access to SAE’s materials and resources (the “Charter”).

26. In the fall of 2017, SAE received notification of several health and safety violations

by the Chapter. SAE issued a cease and desist of chapter operations. The Chapter was required to

stop all operations and was prohibited from participating in any fraternity-related chapter events.

27. SAE subsequently attempted to conduct a membership review of Texas Rho in

response to the various health and safety violations by Texas Rho and its members. The

membership review involves two areas of investigation: (1) chapter viability; and (2) member

viability. The chapter viability portion of the review was to determine whether the existing culture

at Texas Rho was congruent with the values and mission of SAE, and whether the Chapter culture

allowed for the potential redevelopment and reorganization of Texas Rho under a full alumni

commission. The member viability portion of the review was to determine whether there were

members of the Texas Rho that could serve as the foundation for a future SAE Chapter Collegiate.

28. On November 4, 2017, Texas Rho Chapter, by and through its self-selected

alumni/chapter advisor Brent Bechtol, was provided a summary of the membership review

process. In the memorandum issued to Mr. Bechtol, SAE outlined for Texas Rho Chapter the basic

terms of a suspended charter (should the charter be suspended following the membership review),

which included notification that “all brand identity associated with Sigma Alpha Epsilon Fraternity

and Texas Rho would cease.” A true and correct copy of a memorandum to Texas Rho Chapter

6
regarding its suspension is attached as Exhibit A. The Texas Rho Chapter and its members refused

to participate in a membership review.

29. On November 6, 2017, SAE issued an SAE Charter Suspension Notification to

Texas Rho Chapter, which clearly communicated to Texas Rho Chapter that its Charter, and

therefore Texas Rho’s permission to use SAE trademarks and branding, was suspended effective

immediately and the Chapter was closed. In its November 6, 2017 letter, SAE further

communicated that, effective immediately, active members are immediately suspended losing all

rights and privileges in Sigma Alpha Epsilon and no longer have the authority or the ability to

make decisions in the name of Sigma Alpha Epsilon Texas Rho Chapter. Finally, Texas Rho was

told that any attempts to operate an underground chapter of SAE during the chapter’s closure will

face permanent expulsion from the Fraternity. A true and correct copy of the Charter Suspension

Notification to Texas Rho is attached as Exhibit B.

30. SAE notified the University of Texas that it suspended Texas Rho’s Charter and

made an announcement on the SAE website on or about November 6, 2017. A true and correct

copy of the announcement on SAE’s website is attached as Exhibit C.

31. In December 2017, SAE received communication from a member of the Board of

Directors of Texas Rho House asking for clarification on the authority SAE has for revocation of

its permission to use the SAE Marks. The particular Director making the request not only serves

on the board of Texas Rho House, but also serves as an alumni advisor to the Texas Rho Chapter.

SAE responded and provided a list of SAE’s registered trademarks with the US. Patent and

Trademark Office. A true and correct copy of the December 2017 e-mail communications between

SAE and Dale Hortenstine, a member of Board of Directors of Texas Rho House, are attached

7
hereto as Exhibit D. These communications reflect Texas Rho’s knowledge that SAE’s permission

to use its marks had been revoked.

32. Despite the revocation of its license to use SAE’s Marks, Texas Rho continued to

use SAE’s Marks.

33. On March 5, 2018, SAE sent Texas Rho a cease and desist letter, demanding that

Texas Rho immediately cease use of SAE’s trademarks and branding. A true and correct copy of

this letter is attached as Exhibit E.

34. SAE also notified the general University of Texas community that it suspended

Texas Rho’s Charter by taking out an advertisement in the University of Texas campus newspaper,

The Daily Texan, which was also placed on the University of Texas’s website homepage. The

advertisement informs the community that no students in the greater Austin area is authorized to

use the name Sigma Alpha Epsilon, ΣAE, SAE or any other related marks. Only Chapters

Collegiate that are chartered by Sigma Alpha Epsilon Fraternity are authorized to use distinctive

marks of the Fraternity. A true and correct copy of this advertisement is attached as Exhibit F.

C. Texas Rho Chapter and Texas Rho House’s Improper Use of SAE’s Trademarks

35. Notwithstanding SAE’s exclusive common law and statutory rights in the SAE

Marks, SAE’s revocation of Texas Rho’s license to use them, and SAE’s numerous demands that

Texas Rho stop using the SAE Marks, Texas Rho continues to use the SAE Marks every single

day.

36. In September 2018, an affiliate of Texas Rho, the Texas Rho Minerva Club, used

the SAE Marks with the approval of Texas Rho to advertise a Parents’ Weekend Tailgate event

that was scheduled to take place (and did take place) at the Chapter house. Texas Rho distributed

flyers, sent out mass emails, and even had shirts printed for this event, which took place on

8
September 22, 2018. The parents tailgate weekend was further conducted in affiliation with two

campus recognized sororities. A true and correct copy of mock-up design of t-shirt sold for parents

tailgate weekend and digital copy of the flyer distributed by Texas Rho is attached as Exhibit G.

This use of the SAE Marks by Texas Rho was after SAE revoked Texas Rho’s license to use the

SAE Marks and constitutes an improper, infringing use of the SAE Marks.

37. As of September 18, 2018, Texas Rho was using SAE’s “” design trademark

to advertise its Parents’ Weekends, which are scheduled to take place on February 8-10, 2019, and

February 22-23, 2019. A true and correct copy of Texas Rho’s Parents Club website using the

SAE Marks is attached as Exhibit H. This use of the SAE’s trademark by Texas Rho is ongoing,

even after SAE revoked Texas Rho’s license to use the SAE Marks, and constitutes an improper,

infringing use of the SAE Marks.

38. Texas Rho’s use of SAE’s registered and unregistered marks on the Texas Rho

website is causing a likelihood of confusion among its members, member parents, sorority

members, sorority member parents, and the entire University of Texas community about Texas

Rho’s affiliation with SAE.

39. As of September 22, 2018, Texas Rho House was still using SAE’s “” ® design

trademark on the outside of its house, advertising that it and its residents are still affiliated with

SAE. Thus, Texas Rho House is contributing to and perpetuating Texas Rho Chapter’s improper

and infringing use of SAE’s trademarks. This use of the SAE’s trademark by Texas Rho is

ongoing, even after SAE revoked Texas Rho’s license to use the SAE Marks, and constitutes an

improper, infringing use of the SAE Marks. True and correct copies of photographs of the Texas

Rho house advertising the  mark are attached as Exhibit I.

9
40. Additionally, the very title “Texas Rho” was given to Texas Rho by SAE and is an

SAE Mark. Each Chapter Collegiate to whom a charter is issued is assigned a specific name by

which that chapter will be identified throughout its existence as an active and recognized SAE

chapter. Texas Rho’s continued operation under this SAE designation is an improper, infringing

use of SAE’s trademarks.

41. The natural, probable, and foreseeable result of the intentional, willful, and

wrongful conduct of Texas Rho has been to trade upon SAE’s goodwill, and to tarnish SAE’s

relationships with its other Chapters Collegiate, other fraternal organizations, and prospective

members.

42. Texas Rho advertises and holds itself out as having a “2018 Pledge Class,” as

indicated in its correspondence to member parents. However, as previously noted, SAE was the

first large, national fraternity to abolish pledge classes. If Texas Rho injures, humiliates, or causes

any harm to a member of its “pledge class” while using SAE’s trademarks and branding and

representing itself as an SAE Chapter Collegiate, this harm will be associated with and have an

adverse impact on the business and reputation of SAE.

43. Additionally, Texas Rho continues to use the SAE Marks to intentionally create a

likelihood of confusion as to Texas Rho’s affiliation with SAE. Evidence of this intent is reflected

in a mass email Texas Rho sent out titled “Alumni Update from Texas Rho – 9/11/18.” The update

includes an improper use of SAE Marks, including the improper use of “SAE”, as well as the SAE

crest, colors, and lion. A true and correct copy of this email update is attached as Exhibit J. In this

email, Texas Rho states it submitted a settlement offer to SAE and is “continuing the Chapter in

defiance of SAE National’s order to shut down the House.”

10
IV. CAUSES OF ACTION

FIRST CAUSE OF ACTION

(Trademark Infringement Pursuant to 15 U.S.C. § 1114)

44. SAE incorporates all of the above paragraphs as though set forth in full at this point.

45. Texas Rho’s use of the SAE Mark is infringing because Texas Rho is claiming to

have an affiliation with SAE, which it does not.

46. Texas Rho’s unauthorized use in commerce of SAE’s federally registered

trademarks is likely to cause confusion, mistake, or to deceive the consuming public and trade by

creating the erroneous impression that SAE approves of, sponsors, endorses, guarantees, or is in

some way affiliated with Texas Rho and its activities and services.

47. The Texas Rho Chapter’s charter was suspended as a result of health and safety

violations and systemic cultural issues that are incongruent with the mission and values of SAE.

48. The imitation, copying, and unauthorized use of the SAE Marks causes irreparable

injury to SAE, including injury to its business reputation and the goodwill associated with the SAE

Marks.

49. Thus, Texas Rho has infringed SAE’s registered trademarks and have violated, and

continue to violate, 15 U.S.C. § 1114.

50. SAE has no adequate remedy at law for these injuries. Moreover, unless Texas Rho

is restrained by this Court from continuing this imitation, copying and unauthorized use of the

SAE Marks, these injuries will continue to occur. SAE is entitled to an injunction restraining

Texas Rho, their officers, agents, distributors, and employees, and all persons acting in concert

with them, from engaging in such further acts in violation of 15 U.S.C. § 1116.

11
51. By reason of Texas Rho’s willful acts of trademark infringement, SAE is also

entitled to damages and that those damages be trebled pursuant to 15 U.S.C. § 1117.

52. This is an exceptional case making SAE eligible for an award of attorneys’ fees

under 15 U.S.C § 1117.

53. SAE is further entitled to recover from Texas Rho its profits and other advantages

unfairly obtained by Texas Rho as a result of their acts of infringement as alleged above. At

present, the amount of such damages, gains, profits, and advantages cannot be fully ascertained by

SAE, but SAE is informed and believes, and based thereon alleges, that it has sustained such

damages in an amount exceeding $200,000.

SECOND CAUSE OF ACTION

(Trademark Dilution Pursuant to 15 U.S.C. § 1125(c))

54. SAE incorporates all of the above paragraphs as though set forth in full at this point.

55. Texas Rho’s continued use of SAE’s inherently distinctive and famous SAE Marks

in commerce began long after the SAE Marks became famous.

56. Texas Rho’s conduct causes and will continue to cause dilution of the distinctive

quality of the famous SAE marks, because Texas Rho is using the SAE Marks in affiliation with

its activities as a fraternity, which is likely to blur the distinction between SAE’s marks and Texas

Rho and create an association between SAE and Texas Rho.

57. Texas Rho’s conduct is the result of willful and wanton disregard of SAE’s

established and superior rights. Texas Rho adopted, used, and continue to use the SAE Marks

despite having been put on notice and with full knowledge of SAE’s superior rights, and without

authorization. SAE has suffered, and will continue to suffer, irreparable injury as a result of Texas

Rho’s unlawful actions and has no adequate remedy at law.

12
58. By reason of Texas Rho’s acts, SAE is, and will continue to be, irreparably harmed

if Texas Rho is not enjoined. SAE’s remedy at law is not adequate to compensate it for the injuries

inflicted, and SAE is therefore entitled to entry of injunctive relief pursuant to 15 U.S.C. § 1125.

59. Texas Rho has unfairly profited from the actions alleged, and SAE is therefore

entitled to recover from Texas Rho the damages sustained as a result of Texas Rho’s violations of

15 U.S.C. § 1125. SAE is presently unable to ascertain the full extent of the monetary damages

suffered as a result of Texas Rho’s actions, but SAE is informed and believes, and thereon alleges,

that it has sustained damages in an amount exceeding $200,000.

60. Further, because of the willful nature of Texas Rho’s acts, SAE is entitled to

damages, and that those damages be trebled pursuant to 15 U.S.C. §§1125 and 1117.

61. This is an exceptional case making SAE eligible for an award of attorneys’ fees

pursuant to 15 U.S.C. §§ 1125 AND 1117.

THIRD CAUSE OF ACTION

(Unfair Competition Pursuant to 15 U.S.C. § 1125)

62. SAE incorporates all of the above paragraphs as though set forth in full at this point.

63. Texas Rho’s activities and continued use and misappropriation of the SAE Marks

constitute unfair competition.

64. Texas Rho’s activities are likely to cause confusion, or to cause mistake or to

deceive as to affiliation, connection, or association of Texas Rho and their goods and services with

SAE, or as to the sponsorship, affiliation, or approval of Texas Rho’s goods and services with

SAE, or as to the sponsorship, affiliation, or approval of Texas Rho’s goods and services with

SAE.

13
65. As a direct and proximate result of Texas Rho’s conduct, SAE has suffered and will

continue to suffer damages including, without limit, the loss of revenue, reputation, goodwill, and

exclusivity in the SAE Marks, in an amount not yet fully ascertained and to be proven at trial.

66. Unless enjoined by this Court, Texas Rho’s above-described conduct will continue

to cause irreparable injury, for which SAE has no adequate remedy at law, in the nature of injury

to SAE’s reputation, goodwill, and the SAE Marks, as well as confusion and deception among

consumers.

67. Texas Rho’s actions were taken in willful, deliberate, and/or intentional disregard

of SAE’s rights. SAE is entitled to recover treble damages, attorneys’ fees, and costs of this

litigation.

PRAYER FOR RELIEF

1. That the Court enter judgment against each Defendant that:

a. Defendants infringed the rights of SAE in their federal registered trademarks in

violation of 15 U.S.C. § 1114;

b. Defendants infringed the rights of Plaintiff in the  ® trademark in violation

of 15 US.C. § 1125; and

c. Defendants diluted Plaintiff’s SAE Marks in violation of 15 U.S.C. § 1125;

2. That the Court enter judgment against each Defendant that the above acts were willful

and intentional making this an exceptional case;

3. That the Court issue a preliminary and a permanent injunction enjoining and restraining

Defendants and their agents, servants, employees, successors, assigns, and all other

persons acting in concert or in conspiracy with or affiliated with Defendants from:

14
a. Engaging in any infringing activity including advertising, promoting,

marketing, franchising, distributing, selling, or offering for sale, any goods or

services in connection with the infringing marks identified in this Complaint or

any mark similar to the SAE Marks; and

b. Requiring Defendants to deliver up to Plaintiff for destruction any and all

packaging, advertising, and promotional materials in Defendants’ possession,

custody, or control, which contain infringing marks;

4. That SAE be awarded damages for Defendants’ trademark infringement, for

Defendants’ trademark dilution, and for unfair competition under the Lanham Act;

5. That SAE be awarded all profits resulting from Defendants’ infringement or dilution

of SAE’s rights and by means of Defendants’ unfair competition with Plaintiff.

6. That Defendants be ordered to account for and disgorge to SAE all amounts by which

Defendants have been unjustly enriched by reason of the unlawful acts complained of;

7. That SAE be awarded damages resulting from Defendants’ infringement in accordance

with the provisions of 15 U.S.C. § 1117;

8. The damages resulting from Defendants’ infringement and unfair competition under

the Lanham Act be trebled due to Defendants’ willfulness, in accordance with 15 U.S.C

§ 1117;

9. That SAE be awarded exemplary or punitive damages in an amount appropriate to

punish Defendants and to make an example of the Defendants to the community;

10. That SAE be awarded an amount sufficient to reimburse SAE for the costs of corrective

advertising;

11. For pre-judgment interest on all infringement and other appropriate damages;

15
12. That the Court find this case to be exceptional and award Plaintiff its reasonable

attorneys’ fees pursuant to 15 U.S.C. § 1117, and any other applicable provision of law;

13. That the Court award SAE its costs of suit; and

14. For such other or further relief as the Court may deem just and proper.

Respectfully Submitted,

COKINOS | YOUNG

BY: /s/ James B. Ewbank


JAMES B. EWBANK
Texas Bar No. 06752710
jewbank@cokinoslaw.com
Las Cimas IV
900 S. Capital of Texas Highway, Suite 425
Austin, Texas 78746
Telephone: (512) 476-1080
Facsimile: (512) 610-1184

ATTORNEYS FOR PLAINTIFF,


SIGMA ALPHA EPSILON FRATERNITY

16
CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the foregoing has been forwarded to the
following counsel of record on this 8th day of October, 2018 through the Court’s electronic filing
system.

Jonathon K. Hance
Jonathon.Hance@bracewell.com
L. Andrew Taggard
Drew.Taggart@bracewell.com
Eric.Lai@bracewell.com
Bracewell LLP
711 Louisiana, Suite 2300
Houston, TX 77002

Attorneys for Defendant,


SIGMA ALPHA EPSILON,
TEXAS RHO CHAPTER

/s/ James B. Ewbank


James B. Ewbank

17
1:18-cv-852

MEMORANDUM

TO: Brent Bechtol, Texas Rho Chapter of Sigma Alpha Epsilon


FROM: Michael Sophir, Eminent Supreme Recorder
DATE: November 4, 2017
RE: Membership Review Summary

As follow-up to our call on Thursday, November 2, 2017, please find below a general summary of the
membership review process, the reorganization and suspension practices of Sigma Alpha Epsilon. The
review process involves two components.

 Chapter viability
 Member viability

Chapter viability determines whether the chapter is congruent with the values and mission of the
Fraternity. This process is intended to determine whether the existing culture of the Chapter has the
potential for redevelopment and reorganization under a full alumni commission.
Member viability determines whether there are members of the Chapter that can serve as the basis of a
future Chapter.

The charter of the Chapter has currently been transferred to the authority of an Alumni Commission
Chairman. All student members are suspended from the Fraternity, through the conclusion of the
membership review. At which point the status of the member will be determined by the outcome of the
review.

Pre-Interview Process:
 Meeting to explain and reinforce the process
 Sign all agreements (referenced below)

Required Signatures:
 Confidentiality agreement
 Interview agreement
 Academic grade release
 Disciplinary records release

Required in Processes:
 Identified as a registered full-time student of the University of Texas (Austin)
 Proven to have a minimum cumulative 2.5 GPA
 Participate in a drug test
 Release and review of all individual member SAE financial records
 Be listed as a fully initiated member of the Fraternity with all membership fees paid in full to the
Fraternity Service Center, Province and Chapter
 Participate in member interview

1856 Sheridan Road  Evanston, IL 60201-3837  (847) 475-1856  (847) 475-2250 fax  www.sae.net

EXHIBIT A
The outcome of the interview process could result in a member:
 Invited to be part of a new reorganized chapter on probation
 Remain on summary suspension, until graduation and petition for reinstatement
 Be summarily expelled

As a private organization, the interview process determining membership status is between the member
and Sigma Alpha Epsilon Fraternity. At no point in time will anyone other than the member membership
review committee, and Fraternity Service Center staff be allowed to participate in the process.

The relative sanctions, as listed above, are based on involvement in Chapter activities and whether
students or alumni have had direct or indirect involvement with behaviors inconsistent with the values,
mission and Fraternity Laws of Sigma Alpha Epsilon. Questions may include focus on any and all related
activities and or behaviors that are not congruent with the expectations of Sigma Alpha Epsilon
Fraternity.

The confidentiality and interview agreements confirm that the process is confidential and the member,
the membership review committee, and Fraternity Service Center may not discuss their conversation
with anyone in any manner. It further states:

 All individuals participating in the interviews understand that if it is determined to reorganize


the Chapter and they are not invited to participate, they have the opportunity to request a
second interview from the membership review committee. The request for a second interview
would be in the form of a letter submitted to the Chairman of the Membership Review
Committee.
 Any further appeal may be presented to the Supreme Council, per the Fraternity Laws. A letter
requesting reconsideration may be sent to the Eminent Supreme Recorder.
 All students participating in the interview process understand that as a suspended member this
process is a privilege, not a right. They also understand that if they are not invited to be a
member of the Chapter, they will not be provided any reason or explanation for the decision.
 Students must also understand that should they not be invited to participate in the Chapter, if
they cause any difficulties or attempt to attend any Chapter events, they will be expelled from
Sigma Alpha Epsilon, and will be subject to legal and university conduct processes.
 Any students selected to be part of a reorganized Chapter are required to enforce all rules of
suspension and expulsion related to former members and any individuals that were once
considered by the Chapter as members but were not initiated through the National Fraternity
and for whom no membership record exists. Should they fail to enforce these rules, they will be
suspended or expelled.

The Interview:
 Each member agrees to be interviewed by a team of two or more men. Each is a member of the
professional staff or long-standing volunteer familiar with the process.
 The interview questions will be determined to assess whether the Chapter collegiate has
viability for a major reorganization. Any reorganization of the Chapter would involve a formal
alumni commission comprised on non-Texas Rho alumni, selected by the Fraternity Staff and
Province Archon.
 Interviews last approximately 15 minutes. Questions will focus on leadership, chapter
operations, understanding of issues and member behavior. Corroborated allegations may be
raised as part of the questions posed by the interview team if it is believed the student is aware,
participated or witnessed activities inconsistent with policies and Laws of Sigma Alpha Epsilon
Fraternity.

Interview Results:
Members that receive an invitation to join a new Chapter will do so with the understanding that there
can be no contact whatsoever with former members in any way that can even remotely be construed as
related to Sigma Alpha Epsilon. This includes but is not limited to:
 Allowing former members on Chapter property
 Allowing former members at any event, activities or programs, etc.

Basic Terms of Chapter Reorganization:


 Alumni Commission members will be appointed by the Fraternity Staff and comprised of a
diverse group of experienced volunteers likely from chapters other than Texas Rho.
 Any member with perceived conflicts of interest will not be allowed involvement; this includes
fathers of members in the chapter collegiate.

Basic Terms of Suspended Charter (Chapter Closure):


 The Texas Rho Charter will be suspended for no less than five years
 All brand identity associated with Sigma Alpha Epsilon Fraternity and Texas Rho would cease.
 After five years Texas Rho will be eligible for consideration to become a Phoenix Colony,
pending no further activity has occurred.
 Membership selection in a new colony is directed and determined by Fraternity Service Center
Staff.
 The Chapter Advisor and Advisory Board members will be comprised of a diverse group of
volunteers likely from chapters other than Texas Rho. Any members with perceived conflicts of
interest will not be allowed involvement; this includes fathers of members in the chapter
collegiate.
1:18-cv-852

November 6, 2017

Texas Rho Chapter of Sigma Alpha Epsilon


University of Texas
C/O J.R. Gideon, Eminent Archon
jr.gideon@yahoo.com

Dear Texas Rho Chapter:

Effective immediately, the Supreme Council has voted to suspend the Texas Rho (“TXRH”)
Chapter’s Charter and close the Chapter. The suspension is for a minimum of four years. Sigma
Alpha Epsilon will not tolerate activities that are not aligned with the core values and Mission of
our Fraternity and the values of your host institution. It is regrettable that the actions of certain
members have led to this action.

All current active members of the TXRH Chapter are immediately suspended, losing all
membership rights and privileges in Sigma Alpha Epsilon. This suspension will continue
indefinitely. Effective immediately, suspended members no longer have the authority or ability to
make decisions in the name of the Sigma Alpha Epsilon TXRH Chapter. Future individual
membership statuses will be decided in accordance with the Fraternity Laws.

Also effective immediately, the TXRH Chapter and its members are no longer covered by
SAE’s General Liability insurance or fidelity bond.

No undergraduate members present at the time of the chapter’s suspension will be eligible to
assist in recolonization efforts in the event SAE returns to campus. Any men who attempt to
operate an underground chapter of SAE during your chapter’s closure will face permanent
expulsion from the Fraternity. It is our express intent to work with the university administration to
return to the University of Texas campus if doing so is deemed mutually beneficial. Your actions
could impact the Fraternity’s ability to reestablish this partnership.

Fraternally,

F. Michael Sophir
Chief Executive Officer & Eminent Supreme Recorder

CC:
Supreme Council
Clark Brown, General Counsel & Chief Operating Officer
James Balandran, Province Archon
Edmund Buckley, Chairman of the TXRH Alumni Commission
John Kovalan, Senior Director of Chapter Development
Ross Pometta, Manager of Membership & Records
Brandon Weghorst, Chief Communications Officer

1856 Sheridan Road n Evanston, IL 60201-3837 n (847) 475-1856 n (847) 475-2250 fax n www.sae.net

EXHIBIT B
1:18-cv-852
9/25/2018 News - News from HQ - Chapter Closes at University of Texas-Austin - Sigma Alpha Epsilon

MySAE / Get Access Search SAE

ABOUT RESOURCES EVENTS NEWS SUPPORT DONATE VOLUNTEER

CHAPTER CLOSES AT UNIVERSITY OF TEXAS-AUSTIN


AUSTIN, TX – It is with regret that Sigma Alpha Epsilon reports the closure of one of our chapters. The charter for Texas Rho at
the University of Texas in Austin has been suspended as a result of health-and-safety concerns and an inability to adhere to the
national organization’s standards and expectations. In addition, we have notified the University of Texas of our decision to
supsend the group until the membership has graduated or for a period not sooner than four years. Our Fraternity looks forward to
continuing that relationship with administrators so we may facilitate a return, when possible.

The temporary loss of this chapter, which was founded in 1882, is unfortunate, but it serves as a crucial reminder to our collegiate
members, chapter officers and alumni that violations to Minerva’s Shield and failure to follow our membership-education program
known as the True Gentleman Experience will not be tolerated and may result in closure. Those types of violations jeopardize
other chapters and colonies and devalue the positive membership opportunity we should enjoy as a brotherhood.

Our proactive measures continue to advance the good work of the Fraternity. Staff received information via our toll-free,
anonymous hazing hotline; our investigation provided us important details; and our leadership took swift action to intervene with a
group that was not living up to our values and was not complying with many of our health-and-safety policies.

Sigma Alpha Epsilon has zero tolerance for any actions or behaviors that are not consistent with our mission and our creed, “The
True Gentleman.” We are committed to the safety and well-being of our members and others with whom they interact.
Furthermore, we will not hesitate to impose sanctions when guidelines are not being followed.

Although we regret the closure of any chapter, there are situations in which it becomes necessary and warranted. Our leadership
remains optimistic that we can re-establish Texas Rho in the near future with members who exemplify our beliefs and who serve
as leaders and role models on campus and in the greater Austin community.

ABOUT RESOURCES EVENTS NEWS SUPPORT


Mission True Gentleman Experience Calendar News From HQ Donate
History Start A Chapter Leadership School Media Statements Giving Levels
Governance Partnerships & Programs Convention Publications SAE Initiatives
Our Team Health & Safety Levere Leadership Institute Social Media Ways To Give
Our Maps Multimedia Library TG Day Of Service President's Message Shop SAE
Our Home Recommend A Member DeVotie Ritual Institute
Opportunities Parents & Families Eminent Archon Institute
World Series
Golf Tournament

SINCE 1856
© 2016 Sigma Alpha Epsilon. All Rights Reserved. Privacy Policy | Non-Discrimination Policy | Terms and Conditions/Scope of Association

1856 Sheridan Road · Evanston, IL 60201

EXHIBIT C

http://www.sae.net/home/pages/news/news---news-from-hq---chapter-closes-at-university-of-texas-austin 1/1
1:18-cv-852

r""""'l- From: dhortenstine@-


' }Sent: Monday, December 04, 2017 12:25 PM
·-· To: Brandon Weghorst
Cc: 'Mark DeWalch'; jodydlane1 @--paulj@ dfpoh154
@111111111111 Mike Sophir; Cla�
Subject: F� for Information

Thanks Brandon for sending me the attached registration numbers. It is very helpful and responsive to my
earlier request to Clark. I very much appreciate your sending me this information.

\sb240Dale

\sb240From: Brandon Weghorst<bweghorst@SAE.net>


Date:December 4, 2017 at 12:52:09 PM CST
To:MarkDeWalch<mdewalch ···��
'''aut· < au1· ···��
Mike Sophir<msophir@SAE.net>, Clark Brown <cbrown@SAE.net>, '''�
<� "'rfrench3 rfrench3
Subject: RE: Request for Information

\sb240Good Afternoon, Brother Hortenstein-

Since I am the liaison to affinity relationships and serve as our staff's brand manager, I wanted to
·, provide our following registrations with the U.S. Patent & Trademark Office. These items represent
{__) "Sigma Alpha Epsilon/Sigma Alpha Epsilon Fraternity," "Phi Alpha," "True Gentlemen," the coat-of-arms
and our badge design:

U.S. Registration No.: 1,706,605


U.S. Registration No.: 2,674,447
U.S. Registration No.: 2,665,456
U.S. Registration No.: 277,162
U.S. Registration No.: 538,680

Brandon Weghorst
Chief Communications Officer
Sigma Alpha Epsilon
1856 Sheridan Road
Evanston, IL 60201-3837
p: (847) 424-3038 I c: (847) 513-3577
w: www.sae.net

BE TRUE.

EXHIBIT D
1
1:18-cv-852

Nancy Jacobs

From: Clark Brown <cbrown@SAE.net>


Sent: Monday, March 5, 2018 10:21 AM
To: Clark Brown
Subject: Potential Violation of Trademarks

Gentlemen:

As you know, the Texas Rho Chapter of Sigma Alpha Epsilon was closed November 6, 2017. We hereby request
that you return the Chapter’s Sigma Alpha Epsilon charter, SAE ritual books, and SAE ritual equipment, to the
Fraternity Service Center at the address below. These will be kept safe in the event the Chapter is re-chartered.

This communication will also serve as an official request that the local society operating as Texas Rho cease and
desist from using our trademarks, including SAE, “Sigma Alpha Epsilon/Sigma Alpha Epsilon Fraternity,” “Phi
Alpha,” “True Gentlemen,” the coat-of-arms and our badge design. The list of those marks can be found below. Any
display of those marks must be discontinued immediately or we will have to take the unfortunate step of pursuing
legal action. For example, any composite photographs, art, or other displays in the chapter facility that contain our
legally protected marks must be removed or be permanently altered. We further request that the individuals
operating the local society cease and desist from using our legally protected marks in official communications
associated with the local society (example below). This will help everyone understand that there is no relationship
between SAE Fraternity and the local club "Texas Rho."

We respectfully request that you respond to inform us what corrective actions are taken to remedy this situation.

U.S. Registration No.: 1,706,605


U.S. Registration No.: 2,674,447
U.S. Registration No.: 2,665,456
U.S. Registration No.: 277,162
U.S. Registration No.: 538,680

Sincerely,
Clark Brown

Clark Brown
General Counsel & Chief Operating Officer
Sigma Alpha Epsilon
1856 Sheridan Road
Evanston, IL 60201-3837
p: (847) 424-3010
w: www.sae.net
BE TRUE.
This e-mail (including any attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§ 2510-2521, is confidential and may contain
attorney-client materials and/or attorney work product, legally privileged and protected from disclosure. If you are not the intended recipient, you are hereby notified
that any retention, dissemination, distribution or copying of this communication is strictly prohibited. Please respond to the sender that you have received the
message in error, then delete it and destroy any and all copies of it. Thank you.

======

EXHIBIT E
Texas Rho Update - 2018 Officers Elected
SAE Texas Rho Alums -
First, we are moving forward with Spring plans, and held elections Monday night.
The results are below. The Alumni Advisors are excited to work with this new group
of Juniors, Sophomores and Freshmen, and to help them build on all the work put
in by their predecessors. We continue to be impressed, not only by the caliber of
young men leading the fraternity, but also by the level of interest in leadership
shown by so many of the current members. With the passing of the baton, we owe a
special thanks to J.R. Gideon for his calm and measured presence throughout the
Fall and into the Spring semester. While he certainly had plenty of help, and we are
appreciative of everyone’s efforts, J.R. carried a bulk of the load.
Second, as part of Dad’s Weekend (March 2-4), we are going to hold a Saturday late
afternoon get together for any alumni who want to come by 2414 Pearl Street.
Please join the members, the dads and fellow alums from 3:30-6:00 on Saturday,
March 3rd.
Finally, we continue to work with the University and will keep you posted on new
developments. For now, know that we are working with the active members to lay
the ground work for a safe and successful Spring and Summer. Among other
things, the members will continue their good work with the Children’s Advocacy
Centers of Texas. We are also making plans for Summer Rush, and would
appreciate any names of high school seniors headed to Austin next Fall. Please
help us spread the word.
Thanks again for your support.
Phi Alpha,
Brent Bechtol
Joe Christian
Brent Covert
Peter Gardere
Vincent Giammalva
Patrick Hickey
Will Majors
Executive Council 2018:
President (EA) | Robert Perlick
Vice Presidents (EDA) | Ford Douglass, Lovett Shaper, John Covert
Treasurer (ET) | Kevin Ken
Provisional Member Educators | Nathan Bremner and Worth Beard
House Manager | Mac Mackey
Permit Coordinator | John Temple
Risk Manager | Johnny Hurley
Social Chairs | Matthew White and JT Hildebrand

2
Sophomore Rep | Richard Lange
Other Elected Positions:
Rush Captains | Will Esquivel, Dean Taylor, Trey Scardino, Austin Westermann
Asst Social (Soph) | Pete Davis
Asst Permit Coordinator | Pete Bechtol
Asst Treasurer | Jeffrey Kupp
Asst Risk Manager | James Hickey
Herald (EH) | Trey Scardino
Philanthropy | Austin Westermann
Scholarship | Joe Cozby
Recorder (ER) | Chase Jackson
Correspondent | Parker Levy
Warden | Benji Cohen
Alumni Relations | Trem Carr
IM Chair (Intramurals) | Mason McIntyre
IFC (Interfraternity Council) | Hayden Boldrick
Asst Social (Fresh) | Jake Barnett
Asst Philanthropy | Spencer Lewis

Texas Rho | 2414 Pearl Street | Austin, Texas 78705

STAY CONNECTED

Texas Rho | 2414 Pearl Street, Austin, TX 78705

Unsubscribe elbuckley3@gmail.com
Update Profile | About our service provider
Sent by texasrhoadvisors@gmail.comin collaboration with

Try it free today

3
1:18-cv-852

EXHIBIT F
EXHIBIT F
1:18-cv-852

EXHIBIT G
EXHIBIT G
EXHIBIT G
EXHIBIT G
1:18-cv-852

EXHIBIT H
1:18-cv-852
EXHIBIT I
18-CV-852

EXHIBIT J

You might also like