ARKANSAS DEMANDS INDEMNIFICATION

Tim Burke, Manley Burke, tburke@manleyburke.com

As reported in the November issue of Fraternal Law, a lawsuit was filed against Phi Delta Theta, some of its members and several administrators of the University of Arkansas.  That suit grew out of conduct that led to one new member of Phi Delta Theta, who was underage, consuming so much alcohol that when he was taken to the hospital, his blood alcohol content was 0.68.  That is 8.5 times the legal limit for driving in Arkansas.

Since the filing of that suit, a separate action has been filed directly against the University of Arkansas in the Arkansas State Claims Commission.  The University, since it is a State institution, must be sued there.  The Complaint against the University claims that the University “was negligent by not following policies, procedures and regulations and continued violations of those policies, procedures and regulations without repercussions to those groups, organizations or persons violating them.  Due to the continued negligence of the University of Arkansas, Nicholas Brown and subsequently his family received serious injuries.”

In response, the university has demanded that the fraternity indemnify the university against this suit and provide protection to the university if it is found responsible for any damages.

The trend of universities demanding indemnification agreements from fraternities and sororities as a condition of recognition is one that should be watched carefully.  It may have a significant long term impact.