[Alumni-chat] [SaveAntioch] Has the Lawsuit preempted alumni efforts

[bdevine (bdevine at antioch-college.edu)]

Sister Sara writes:

Ted, I expect the faculty suit will be settled with an agreement on some
sort of severance package.  The harm done to the faculty is essentially  loss of
economic security and perhaps career or professional damages.  But  it is hard
to argue that an organization operating at a deficit over a number of  years
should continue to operate so as to acquire an even greater deficit, as a
means of contributing to employees economic security and well being.   Non-Profit
Corporate Law makes the trustees of a non profit the fiduciaries for  that
organization, and if the BoT can demonstrate during what ever kind of
discovery/hearing process is required, that they made a reasonable business  decision
given the facts at their disposal and the consultants they employed to  advise
them, the argument that one should stay open and pile up more debt will  not
get much sympathy from any judge.  If the judge is sympathetic to the  faculty
there may be pressure to negotiate a severance package as settlement --  and
the BoT will have to weigh that against things like community good will,  costs
of further litigation and all the rest.

Sally,

The faculty is seeking an injunction to 

(a) Stop the closing.  

(b) Protect the assets.  Already there have been surveyors and parties examining buildings on campus, already there have been office moves to empty certain buildings -- for mothballing or for demolition, we don't know.  Already there have been offers to some outside of Yellow Springs to buy property.  We have no idea what happens to endowment earnings and growth in the short term, and are uncertain about outcomes for the Coretta Scott King Center and the Glen.  The assets used by the College need to be protected.

(c) Prevent further damage to the College and its reputation.  Announcing the closing publicly (actually before announcing it on campus), the Board did substantial damage to the prospects of the College -- in recruitment of students, in retention of current students, and in fundraising.  Since the announcement, University staff and Trustees, and even the College President have made disparaging and damaging comments about the College, it's programs, its students and its faculty.  If this continues, the failure of the College will be a kind of self-fulfilling prophecy.   

Accomplishing the above through an injunction would allow the Alumni Board and others sufficient time to organize, to raise money, to develop detailed plans and to seek avenues of negotiation.

It seems to me that the law firm retained by the faculty has a bit more knowledge, savvy and insight than all the sidewalk supervising and pedestrian opinions that you might provide.

Bob