In Re Antioch University
District of Columbia Court of Appeals
418 A.2d 105 (1980)
- Written by Jennifer Flinn, JD
Facts
Antioch University (defendant) was a private university governed by a board of trustees. The Antioch School of Law (the law school) (plaintiff) operated as part of Antioch University. The university suffered from severe financial problems. Law-school authorities feared that the law school’s accreditation status might be compromised due to the university’s financial issues, so law-school authorities sought the right to control the school’s financial affairs. Law-school authorities filed a lawsuit against the university, arguing that the university had relinquished administrative and financial control over the law school and was in breach of its fiduciary duties to law-school students and clients. The university argued that it had the responsibility to control all funding for the university as a whole, including the law school, and that its ability to administer funds for the good of the university as a whole would be impaired if the university lost the ability to control the law school’s funding. Both parties filed motions for preliminary injunctions. The trial court denied the preliminary injunction sought by the law school and granted, in part, the preliminary injunction sought by the university by ordering all law-school funds to be under the university’s control. The law school appealed.
Rule of Law
Issue
Holding and Reasoning (Nebeker, J.)
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