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It appears there is a PA Supreme court case saying that when an engagement is broken, the donee of the engagement ring must return the ring or pay the donor its equivalent value even when the donor breaks the engagement.
Here is a link to a discussion of the ruling: http://findarticles.com/p/articles/mi_qa3898/is_200004/ai_n8892917
The Pennsylvania Supreme Court has held that an engagement ring is a conditional gift, conditioned upon the marriage occurring. If the marriage does not occur, regardless of reason and regardless of who broke the engagement, the donor of the ring is entitled to its return.