Sigma Alpha Mu has since been dismissed from the University of Michigan's campus
A University of Michigan fraternity faces a hefty bill after an out-of-control party allegedly caused $430,000 worth of damages to a Michigan ski resort.
That’s four times the original estimate of $100,000 quoted by Treetops Resort general manager Barry Owens back in January, when the incident involving the Michigan chapter of Sigma Alpha Mu first happened.
“If you just look at our out-of-pocket expenses, things we’ve paid to contractors, third parties, it’s around $230,000,” Owens said in a statement to the Detroit Free Press on Saturday.
“It doesn’t take into consideration management time or damage to the resort’s reputation,” he added. “Our accountants and attorneys are saying that this could be up to an additional $200,000.”
But Owens doesn’t think the school or fraternity in question will pay up.
“It also has become evident that the fraternity representatives have suggested that they are unwilling to pay for the damage that they caused the resort,” Owens said.
A representative for Sigma Alpha Mu disputes this claim.
“We have never told their lawyer that we were unwilling to pay the expenses. I never told him that,” Alan Greenberg, who serves on the alumni board that owns the Michigan chapter’s house, told Michigan Live.
He added that Sigma Alpha Mu, which has since been dismissed from campus, was not made aware of the new estimate.
“We have never been told that by their attorney,” Greenberg said. “They never told us $430,000. He told us that there was approximately $250,000 in hard costs, meaning invoices and bills that they had to pay, and they didn’t include any soft costs like lost revenue.”
Sigma Delta Tau, a sorority at the University of Michigan, was suspended in connection with the incident as well.
Another ski resort saw about $25,000 worth of damage during that wild weekend. That case has been settled.
“The individuals and organizations accountable for the damages have taken full responsibility for their actions and we received full reimbursement for damages and loss of revenue for the time the units were out of our rental management program,” Mike Chumbler, president and general manager of Boyne Highlands Resort, said in a statement Monday, the Petoskey News-Review reports.