Saint Augustine's University Wins Stay on

A bankruptcy court has granted Saint Augustine's University a temporary reprieve from potentially covering the legal costs of two former trustees. The ruling, issued by Bankruptcy Judge David Warren, pauses litigation against ex-trustees James Perry and Brian Boulware while the court determines if the university's bylaws obligate it to fund their defense.

According to a report from Inside Higher Ed, the stay was requested by SAU attorney Ciara Rogers during a Wednesday hearing. Rogers argued the university's bylaws may require it to bankroll the defense for Perry and Boulware. She also stated she believed there was no insurance policy in place to cover such trustee legal expenses, meaning the financial burden could fall directly on the institution.

The Underlying Lawsuit

The former trustees are defendants in a lawsuit originally filed by ex-SA President Christine McPhail. McPhail alleged she faced gender-based discrimination and a hostile work environment before her firing in 2023. Although McPhail died in early 2026, her estate is continuing the legal case against the university and the two former board members.

The lawsuit against the university itself was automatically stayed when SAU filed for bankruptcy. That protection, however, did not originally extend to Perry and Boulware as individuals, prompting the university's request for an extension of the stay.

Judge's Comments and Concerns

In granting the temporary stay, Judge Warren expressed significant concern over the potential financial risk to the university. He called the costs "too much of a risk" for SAU. The judge also criticized the conduct and preparedness of the former trustees.

Warren said he was "surprised by the lack of professionalism" exhibited and "astonished that people in a fiduciary capacity" did not have proper insurance. "No wonder they're in this court," he remarked during the hearing.

A Temporary Pause and New Leadership

Judge Warren clarified that the stay is not permanent. It is in place only while the court gathers more information on two key questions: whether the university is truly obligated to cover the trustees' legal costs, and whether any applicable insurance policy exists.

Attorney Rogers emphasized at the hearing that the university's current board is now composed entirely of new members. Saint Augustine's University, which has lost its accreditation and is not offering classes this fall, continues to work through its bankruptcy proceedings. The judge's decision delays a financial decision that could further impact the institution's fragile state.