The founders of Lambda Epsilon undoubtedly meant to establish a law fraternity dedicated to promoting the professional development of  its members. Their zeal to ensure that this new organization would remain true to its founding principles led them to place severe restrictive procedures on expansion to other appropriate law schools and to maintain a tight rein on the central government of the fraternity.

In a short period of time, it became apparent that the attraction for this type of organization was of universal interest within the legal profession and that the new organization should be reorganized to allow its benefits to become available throughout the legal profession. Realizing this need, the delegates to the convention held at the Colonial Tavern in South Haven, Michigan on July 16, 1902 unanimously adopted a resolution dissolving Lambda Epsilon. The next day, the South Haven Articles were  signed which Were to become the foundation of Phi Alpha Delta. A committee was appointed to suggest a method of procedure. After several months of arduous work a meeting was held in Chicago on November 8, 1902, and the Articles, Constitution, Ritual and Rules governing the organization of were proposed and formally adopted together with the name of "Phi Alpha Delta."