Graney v. Board of Regents of the University of Wisconsin

Graney was a tenured faculty member in the University of Wisconsin system, which was overseen by the Board of Regents of the University of Wisconsin (the board) (defendant). Graney and several other faculty members (the faculty) (plaintiffs) received letters from the chancellors of their respective universities explaining that they would be laid off for financial reasons. This decision was made by the board, which had determined that the University of Wisconsin system was experiencing a financial crisis that necessitated the layoff of tenured faculty. This decision came amid declining enrollment and following the state legislature’s allocation of funds. After a failed attempt to attain a preliminary injunction, the faculty filed suit, alleging breach of contract and violations of due-process rights under the Fourteenth Amendment. Wisconsin Statutes § 37.31 limited the board’s authority to terminate tenured faculty to terminations for cause. Wisconsin Statutes § 37.31 defined cause as reasons relating to efficiency and good behavior, and it did not mention financial exigency. The faculty argued that because financial exigency was not included in this definition, the board could not rely on financial exigency and had acted outside the scope of its power. The board relied on Chapter 37 of the Wisconsin Statutes, which afforded it the broad power to accomplish the objectives and perform the duties prescribed by law. A trial court granted the board’s motion for summary judgment. The faculty appealed.