Today, the NCAA made its case in a Pennsylvania court to dismiss a lawsuit brought by State Senator Jake Corman and State Treasurer Rob McCord that seeks to prevent any money Penn State pays towards its obligations under the Consent Decree from going to child abuse victims outside of Pennsylvania. Senator Corman relies in part on the recently enacted Pennsylvania Institution of Higher Education Monetary Penalty Endowment Act (the “Endowment Act”) to support his lawsuit, but the NCAA has challenged this new law as unconstitutional and unenforceable in a separate federal lawsuit.
The NCAA believes Corman's lawsuit should be dismissed for the following reasons:
- Corman and McCord do not have the legal right to sue;
- Penn State is not a party to the lawsuit so it cannot go forward;
- The Endowment Act has not been violated because the NCAA has not yet received any money from Penn State;
- The Endowment Act is unconstitutional because it attempts to negate a legally binding agreement between private parties and divert funds to state coffers.
"Today’s argument in the Pennsylvania Commonwealth Court focused on important questions concerning whether State Senator Corman and State Treasurer McCord have standing, or in other words are proper plaintiffs, to pursue this claim and whether PSU is an indispensable party without whom the case must be dismissed," said NCAA Chief Legal Officer Donald Remy. "We are pleased with the court’s interest in and careful attention to these issues," he added.
Despite Penn State’s absence, Senator Corman and Treasurer McCord have suggested a mediation that would necessarily include Penn State and today the court asked the NCAA to consider such mediation. Eleven months ago, the NCAA agreed with Penn State's request to ensure that at least $15 million (25% of the endowment) will be spent in the Commonwealth of Pennsylvania.