| Policy Title | Litigation Policy |
|---|---|
| Policy Category | Ethics, Integrity, and Legal Compliance Policies |
| Original Policy Approval Date | February 14, 2018 |
| Policies Superseded | None |
| Responsible Office | Office of General Counsel |
| Related Policies | Whistleblower Policy; Records Management Policy |
| Frequency of Review | 5 Years |
| Date of Next Review | August 2030 |
I. Scope
This Litigation Policy (“Policy”) applies to all Personnel of the University, including faculty, staff, administrators, and volunteers. It also extends to students when they act in roles that may subject them to institutional liability (e.g., teaching assistants, clinical trainees). See Section IV below for the definitions of capitalized terms in this Policy.
II. Policy Statement
The purpose of this Policy is to establish the process to be followed in the event that the University becomes aware of threatened or pending litigation involving the University or University Personnel, whether the University is named directly or indirectly. This policy seeks to ensure timely reporting, protect institutional integrity, preserve legal rights and privileges, and minimize reputation and financial risk. It applies whether litigation occurs or is threatened in domestic or international jurisdictions, or under regulatory frameworks relevant to the University’s operations.
III. Policy
The General Counsel represents the University as a corporate entity in legal matters and reports to the President on a regular basis regarding the legal affairs of the University. As the University’s Chief Legal and Compliance Officer, the General Counsel also reports to the Board of Trustees as necessary in order to protect the University’s interests. It is essential the University to have a structured process through which the University responds to any legal action or possible legal action involving the University.
Notification of Lawsuit
- All University Personnel must report to the General Counsel within 24 hours of becoming aware that an employee or member of the public indicates that he or she may or will take legal action against the University. The General Counsel will consult with the President on those matters the General Counsel considers have a good chance of resulting in a lawsuit. The President shall consider the severity of the allegations, the potential financial impact on the University, and the potential harm to the reputation of the University, among other factors, in making a determination as to whether to advise the Board of Trustees of the potential or threatened lawsuit.
- The General Counsel is authorized to receive and accept service on behalf of the University of a complaint or other legal document.
- Upon receipt of service, the General Counsel will notify the President and any employees named as parties in the lawsuit that the suit has been filed.
- Upon receipt of notification of a lawsuit, the General Counsel will notify the University’s insurance carriers that the suit has been filed. In many cases, existing or potential claims must be reported to the insurance carrier during the insurance policy term. Coverage for the University may be jeopardized if a claim is not submitted during the insurance policy period in which the claim was made. Accordingly, prompt internal communication is essential to maintain coverage.
- Upon receipt of notification of a lawsuit, the General Counsel, in consultation with the President and the University’s insurance carrier, shall determine whether it is in the University’s best interest to settle the matter or allow the litigation to move forward to trial.
- Upon receipt of notification of a lawsuit, the General Counsel will determine whether there is a need to retain Outside Counsel, and if so, shall, in conjunction with the insurance carrier, choose Outside Counsel with appropriate expertise, subject to budgetary considerations.
- If a litigation matter names one of the attorney personnel in the Office of General Counsel as a defendant, then it is preferable to have the matter handled by other attorney personnel in the Office of General Counsel. If there are no other attorney personnel, then the President or his or her designee should assign the matter to outside counsel to represent the University. Such outside Counsel would report to the President, who, in turn, would report such litigation (based on materiality or the possibility of harm to the University’s reputation) to the full Board of Trustees or the Executive Committee of the Board between meetings. If both the General Counsel and the President are named as a defendant, the Chair of the Board of Trustees will coordinate a defense of the matter.
- Upon receipt of notification of a lawsuit, the General Counsel will also notify the Office of University Relations. University Relations shall decline to respond to press inquiries regarding any lawsuit filed unless the President, in consultation with the General Counsel, determines that public comment is appropriate. University Relations shall consult with the President in preparing any public statement relating to the filing of the lawsuit.
- The President shall inform the Board of Trustees of all lawsuits (based on materiality or the possibility of harm to the University) filed against the University within a reasonable time of receipt of notification of the lawsuit.
Course of Litigation
- The General Counsel shall be the point of contact for the University’s insurance carrier during the course of litigation and shall ensure timely updates, full cooperation, and compliance with policy reporting requirements.
- University Personnel must be mindful that internal documents and discussions of pending litigation may be discoverable during litigation. All relevant records, including digital communications (e.g., email, messaging platforms, share) must be preserved. The General Counsel shall coordinate the University’s internal response to litigation, including ensuring that the University fulfills its responsibilities with respect to discovery, which shall be conducted under the direction of the General Counsel or any Outside Counsel retained to represent the University.
- Upon the reasonable anticipation of litigation, the General Counsel shall issue a Litigation Hold Notice to relevant University Personnel. This notice will require the preservation of any records, emails, or other documents related to the matter. The General Counsel shall monitor compliance and provide follow-up instructions as necessary. No documents covered by the Litigation Hold may be altered or destroyed without written approval from the General Counsel.
- Once an action has been filed, unless otherwise expressly authorized by the President, no employee or department shall independently engage in legal discussions, produce documents, or respond to inquiries regarding the case. All meetings, discussions concerning the case, fact-finding, preparation of reports and other information gathering or dissemination, shall be coordinated under the direction of the Outside Counsel or the General Counsel.
- Outside Counsel or General Counsel shall meet with any employees named in the case, or who may be closely involved in the case as a potential witness, and others, as they deem appropriate, to explain the matter in dispute and the processes and procedures to be used to protect attorney-client privilege, attorney work product, and confidentiality obligations. Training may be provided, as appropriate, to employees named in or involved with the litigation.
- No University Personnel shall destroy any record, memoranda, or notes relating to any matter that is subject to threatened or pending litigation without the express written consent of Outside Counsel or General Counsel, who may only authorize the destruction of these records consistent with the applicable rules of procedure, standards of practice, code of ethics for the conduct of litigation, and the University’s Records Management Policy.
- The General Counsel shall provide the Institutional Integrity Committee of the Board of Trustees with updated reports at designated Institutional Integrity Committee meetings regarding pending and/or settled litigation that may have a material impact on the University’s financial statements or compliance policies. The rationale is to provide information regarding those situations that call for Board oversight and potential revision of University risk, compliance, or operational policies and procedures.
Managing Communications Relating to Lawsuits
No University Personnel shall comment on any matter in litigation or any matter known to be the subject of potential or threatened litigation without the express permission of the President. The Office of University Relations shall manage any official University response and shall automatically decline to comment on legal inquiries from media, government agencies, or the public, unless directed otherwise. The President shall coordinate all communications with the Board of Trustees and with Outside Counsel or General Counsel. Faculty and staff contacted by the media regarding litigation should immediately refer the inquiry to University Relations without comment.
Settlements and Court Orders
Except for orders expressly involving the General Counsel, the General Counsel shall be the principal point of contact and coordination for carrying out court-ordered activities and ensuring compliance with Court Orders and Settlement Agreements. All Settlement Agreements shall be reviewed by the General Counsel, and where required, by the President or Board of Trustees before execution. The General Council shall ensure that all obligations arising from Settlement Agreements are documented, monitored, and fulfilled in a timely manner.
Record Keeping for Legal Files
All correspondence with Outside Counsel or General Counsel and other records relating to matters involving the conduct of litigation shall be clearly labeled as such and shall be maintained in the exclusive custody of the Office of the General Counsel. Physical files shall be retained in locked, restricted-access records storage. All records shall be retained in accordance with the University’s Records Management Policy.
Other
The General Counsel also serves as the University’s Chief Legal and Compliance Officer. Therefore, all University operations which may be deemed to implicate legal matters, as determined by the President or Chair of the Board of Trustees, shall require involvement of General Counsel. Examples of such matters include—but are not limited to—contracts, investigations, regulatory inquiries, partnerships, and personnel actions that may present legal exposure.
IV. Definitions
- Court Orders are official proclamations by a judge that define the legal relationships between the parties to a hearing, a trial, an appeal or other court proceedings. Such rulings require or authorize the carrying out of certain steps by one or more parties to a case.
- General Counsel means the employee of the University who supervises the legal department of the University, acts as the primary legal advisor to the president, Board of Trustees, and University community, and represents the University in a wide range of legal matters on a daily basis.
- Litigation Hold: A directive issued by the General Counsel requiring the preservation of records and information that may be relevant to pending or anticipated litigation or legal investigation.
- Outside Counsel refers to any attorney retained directly by the University in consultation with the University insurance carriers to represent the University in a particular matter or case. This includes any outside counsel retained to handle matters outside of the United States on behalf of the College of Global Studies.
- Party means any person named in a lawsuit involving the University.
- Settlement Agreements are an acknowledgment by parties to a lawsuit that it is in their best interests to agree to settle their dispute without the need for further litigation.
- University means Arcadia University, its colleges, schools, affiliates, divisions and subsidiaries.
- University Personnel means all University full and part-time employees (including student workers), staff, faculty, administrators, and volunteers.
V. Effective Date
This Policy shall be effective on the date it is signed by the President and shall remain in effect until amended or rescinded in accordance with University procedures.
VI. Date of Approval
February 14, 2018; amended August 2025 to incorporate de minimis changes and inadvertent omissions.
