Morgan v. American University

Phillip Morgan (plaintiff) was hired by American University (AU) (defendant) as an assistant professor on a tenure track. After three consecutive one-year appointments, AU learned that Morgan was a full-time professor at another university, a fact that he did not disclose during his appointment process. Morgan’s one-year contract was immediately rescinded. AU did not conduct a hearing as required by § 19 of the faculty manual, which provided that adequate cause had to be shown if a faculty member was terminated before the end of his or her contract. The faculty manual defined adequate cause as something related to a professor’s fitness or performance. Morgan filed a breach-of-contract claim against AU, contending that AU was required to afford him a hearing, as required by his contract. AU argued that it had the right to rescind his contract because Morgan made a material misrepresentation prior to its formation. A jury returned a verdict for AU, finding that AU had shown that it had a right to rescind the contract and, therefore, Morgan was not entitled to any protections afforded by his contract. Morgan filed a motion for judgment notwithstanding the verdict, which was denied. Morgan then appealed, arguing that, as a matter of law, the contract language, which included § 19 of the faculty manual, was unambiguous and afforded him the right to a hearing.