THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, August 13, 1994 TAG: 9408130297
SECTION: LOCAL PAGE: B5 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: ROANOKE LENGTH: Medium: 59 lines
A federal judge on Friday declined to dismiss a lawsuit filed by a former head of the Virginia Student Aid Foundation who claims he was defamed by two University of Virginia officials during an investigation of loans to student-athletes.
U.S. District Judge Samuel Wilson gave attorneys for Ted Davenport and the university two weeks to provide additional arguments on whether Davenport was employed by a state agency or a private corporation.
Davenport, 65, was fired in April 1992 as the foundation's executive vice president in charge of special fund raising. He had been connected with the university for 44 years.
The National Collegiate Athletic Association found that the foundation broke its rules when providing loans to U.Va. student-athletes between 1982 and 1990. The NCAA, which forbids athletes from receiving benefits unavailable to other students, placed the university on probation and reduced the number of football scholarships for two years.
Davenport's $1.4 million lawsuit contends President John T. Casteen III and athletic director Jim Copeland violated his civil rights by going public with unsubstantiated allegations that later cost him his job.
Wilson said if Davenport was a private corporation employee, his lawsuit won't qualify as a federal civil rights case.
Wilson could dismiss the case after reviewing additional written arguments, rule later on a summary judgment motion, or allow it to go to trial in November.
The lawsuit is the fourth Davenport has filed since his firing. The Albemarle County Circuit Court dismissed a $4 million libel suit against Casteen and a $175,000 wrongful-firing suit against the foundation. The Virginia Supreme Court refused in August to hear appeals of either case.
Davenport reached an out-of-court settlement in a separate suit against U.Va.'s Birdwood Golf Course, which also dismissed him after the scandal.
James J. Mingle, U.Va.'s general counsel, argued that the case should be dismissed because the state court system heard and rejected the same basic allegations.
``This litigation has a long history and we submit that's how it should be viewed - as history,'' Mingle told Wilson.
Deborah Wyatt, Davenport's attorney, said the Albemarle County judge threw out the case against Casteen on a technicality and no arguments or evidence were presented in court.
Davenport said during a court recess that the litigation is causing his health to deteriorate - he's been in the hospital three times since the firing, including triple bypass surgery in May.
``I wasn't bitter until they accused me of things I didn't do,'' Davenport said. ``They had to have somebody for a scapegoat. I'm going on because I want the truth to come out. Money is not an issue.''
KEYWORDS: LAWSUIT UNIVERSITY OF VIRGINIA NCAA ATHLETES LOAN by CNB