Chapman Wins Reversal of $1.15-Million Wrongful Termination Suit : Ruling: Appeals court finds university not guilty of sexual discrimination and other allegations stemming from the firing of a faculty member.

The 4th District Court of Appeal has reversed a jury’s decision to award $1.15 million to a former faculty member at Chapman University who accused the institution of sexual discrimination and wrongful termination.

Thursday’s court decision found that Chapman was not guilty of numerous allegations, including sexual discrimination and violating the California Constitution, when it fired Margaret Murphy in 1986 after contract negotiations with the sports medicine professor faltered.

Murphy, who holds a doctorate in exercise physiology and taught sports medicine at Chapman, alleged that the school backed out of a contract at the last moment. A jury agreed, and awarded her the money in 1992. Chapman appealed the decision.

Murphy said the school wanted to oust her for her outspokenness on campus on behalf of faculty issues.

Thursday’s ruling found Chapman guilty of breach of contract. The court also ruled that the private university in Orange owed Murphy the amount of the five-year contract, plus other benefits.

Roger H. Schnapp, a trustee of Chapman and an employment law attorney, said the new award has yet to be calculated and could be somewhere around $100,000 or less, partly because Murphy found a higher paying job after leaving Chapman.

“This is an overwhelming victory for Chapman,” Schnapp said. “We are very satisfied.”

Murphy, who is director of occupational medicine at Parkview Hospital in Riverside, said, “I’m incensed. For the appeals court to overturn what 13 jurors unanimously agreed upon bothers me a lot. What’s the point of a jury trial if an appeal court, working in the sanctity of their chambers, can wipe out a jury’s decision?”

James L. Doti, president of Chapman, was also pleased with the court decision.

“This is a great day for Chapman University. It’s a great relief to have that million-dollar verdict which was a real cloud over our heads removed,” Doti said.