This article reports that Princeton University has settled a long-running dispute with the heirs of a major donor by agreeing to pay $50-million to the heirs' foundation and approximately the same amount for their legal fees. The case has been closely watched as a test of how strictly institutions must adhere to donors' wishes. The settlement means the case will not produce any legal precedents for such situations. Still, experts say the case and its settlement do provide some useful lessons to colleges about how to avoid long and costly skirmishes over donor intent. The dispute centered on an endowment, the Robertson Foundation, that supports Princeton's Woodrow Wilson School of Public and International Affairs. Under the settlement, the endowment, which is worth more than $700-million, will be dissolved, and Princeton will retain most of the money in a new fund controlled solely by the university. In 2012 it will begin transferring $50-million, plus interest, to a new foundation being established by the Robertsons to support the preparation of students for government service. Princeton will also reimburse the Robertson family's foundation, the Banbury Fund, for $40-million in legal fees in the case.