The Regents of the University of California v. Khoury
The Regents of the University of California (the Regents) claim that Sarkis Joseph Khoury, a member of the faculty of the University of California, Riverside, violated written university policies by receiving outside income while on sabbatical. In this action, they seek to recover the amount of that income as compensatory damages, along with treble damages and civil penalties under the False Claims Act and punitive damages.
Other written university policies, however, essentially provide that the administration cannot discipline a faculty member for professional misconduct except by bringing him or her up on charges before the privilege and tenure committee (the Committee) of the Academic Senate. In light of these policies, the trial court ruled that the Regents had failed to exhaust their own internal administrative remedies. It therefore granted summary judgment in favor of Khoury and against the Regents.
We will hold that the applicable doctrine was not exhaustion of remedies, but rather primary jurisdiction. Under this doctrine, the trial court was required to stay the case until the Regents obtained a final determination by the Committee that Khoury had, in fact, improperly received outside income; then the Regents could return to court to seek damages.
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