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PSU Trustees May Recover Costs Of Suit for Right to Review Records

PSU Trustees May Recover Costs Of Suit for Right to Review Records

PSU Trustees May Recover Costs Of Suit for Right to Review Records

Recovery permitted by expense reimbursement policy and indemnification clause in bylaws
Alumni trustees of Penn State University may recover the litigation costs of their successful suit to gain access to “source materials” of the Freeh Report on the Jerry Sandusky situation, the Pennsylvania Commonwealth Court has held. Reversing a trial court, two of the three judges on the three-judge panel decided that the University had to pay the costs under the University’s cost reimbursement policy set forth in its corporate charter. All three judges said payment was required under the indemnification clause in the bylaws. And they all agreed that they didn’t have to decide whether payment was required under the state’s nonprofit corporation law. Eight alumni-elected trustees had sued...

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