University of Louisville v. Rothstein, Mark
532 S.W.3d 644
| Ky. | 2017Background
- Mark Rothstein was hired by the University of Louisville (U of L) as a tenured professor and awarded a five-year renewable Distinguished University Scholar (DUS) written contract; the DUS contract was later terminated and Rothstein sued for breach of the written contract.
- U of L moved for summary judgment asserting governmental (sovereign) immunity as a state agency; it argued KRS 45A.245 (part of the Kentucky Model Procurement Code, KMPC) waived immunity for procurement contracts but did not waive immunity for university employment contracts.
- The Franklin Circuit Court denied U of L's sovereign-immunity defense, finding KRS Chapter 45A applicable to written employment contracts.
- The Court of Appeals affirmed, holding KRS 45A.245 clearly waived immunity for written employment contracts.
- The Kentucky Supreme Court granted discretionary review to decide whether KRS 45A.245 waives immunity for all lawfully authorized written contracts with the Commonwealth, including employment contracts.
- The Supreme Court affirmed the Court of Appeals: it held KRS 45A.245 unambiguously waives governmental immunity for all claims arising from lawfully authorized written contracts with the Commonwealth (including employment contracts) and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether KRS 45A.245 waives sovereign immunity for written employment contracts | Rothstein: statute waives immunity for any lawfully authorized written contract, so his breach claim can proceed | U of L: waiver limited to KMPC/procurement contracts; does not apply to university employment contracts | Held: KRS 45A.245 is an unqualified waiver for all lawfully authorized written contracts, including employment contracts |
| Whether waiver is limited to contracts made under the KMPC | Rothstein: waiver language is broad and unqualified; not limited to KMPC | U of L: statute is in KMPC and should be limited to procurement contexts | Held: waiver is not limited to KMPC; plain statutory text governs and is broad |
| Proper interpretive approach to KRS 45A.245 (plain meaning vs. limiting construction) | Rothstein: apply plain meaning of statute; legislature’s reenactment implies assent | U of L: urge limiting construction to avoid unintended consequences for universities | Held: apply plain language and reenactment doctrine; earlier constructions support broad waiver |
| Whether court should decide if universities must follow other KMPC provisions when hiring | Rothstein: not necessary to resolve here | U of L: argued KMPC context is relevant to scope of waiver | Held: Court declined to decide whether public universities must follow other KMPC provisions; only ruled on waiver scope |
Key Cases Cited
- Furtula v. Univ. of Kentucky, 438 S.W.3d 303 (Ky. 2014) (discussed question whether KRS 45A.245 applies to employment contracts; court previously reserved the issue)
- Withers v. Univ. of Kentucky, 939 S.W.2d 340 (Ky. 1997) (legislature must clearly waive governmental immunity; courts apply strict standard)
- Rouan County v. Sloas, 201 S.W.3d 469 (Ky. 2006) (sovereign-immunity entitlement is a question of law reviewed de novo)
- Foley Constr. Co. v. Ward, 375 S.W.2d 392 (Ky. 1964) (before statutory waiver, sovereign immunity barred contract suits absent legislative authorization)
- Univ. of Louisville v. Martin, 574 S.W.2d 676 (Ky. App. 1978) (Court of Appeals recognized contract-claim waiver applied to university employment claims)