ORANGE – Chapman University has agreed to settle a lawsuit brought by a 98-year-old philanthropist who had charged that the university took advantage of his age to get him to donate $12 million for a technology building.

University officials said donations from James and Catherine Emmi now will be used to create a scholarship fund. The agreement will resolve the suit, according to a brief statement issued Wednesday.

“Due to the confidentiality of the agreement, this will be the only statement released by either party,” Chapman spokeswoman Mary Platt said. She declined to elaborate.

The lawsuit, filed this month, states that Emmi had signed an irrevocable contract to donate $12 million to the university for the technology building, which has yet to be constructed. Emmi, a member of the school’s board of trustees, has given $3 million of the money.

Wednesday’s statement announced “a restructuring of previously donated funds toward a new scholarship program for outstanding students studying science, technology, engineering and math (STEM) at Chapman University.”

Platt declined to state what will happen with the rest of the money and the contract.

The Emmis’ lawyer, James Bohm, likewise would not comment on the money and contract.

The Emmis are happy the lawsuit is being put to rest, Bohm said.

“James was an engineer and is always interested in helping engineering students,” Bohm said. “He has given scholarship money before and that was an important thing for him.”

The suit alleged that Chapman President James Doti would “prey” on Emmi to donate money while knowing that Emmi was “more susceptible to inducement and confusion” because of his age. Catherine Emmi signed as a witness but failed to give consent to the donation, as required, Bohm said previously.

James Emmi had hoped to see the building bearing his name during his lifetime but construction has yet to start, the lawsuit says. The planned Center for Science and Technology is expected to cost $130 million; fundraising for it continues.

The new fund will now support “James and Catherine Emmi Scholars” for students to pursue studies at Chapman.

“Our intent with every donor is to help them achieve their personal legacy objectives,” Doti said in a statement. “After learning of Mr. and Mrs. Emmi’s goals, we worked to address their desire to direct their gift into an endowed scholarship fund.”

“We anticipate the Emmi Scholars will become extraordinary leaders and contributors in their future careers.

“I am pleased that Chapman University is able to honor the legacy of Jim and Catherine Emmi by educating well-prepared students who will make our community and our world a better place.”

Contact the writer: 714-704-3793 or stully@ocregister.com