CMU changes policy, will not do business with affiliates involved in lawsuits

A recent addition to the manual of administrative policies will affect every future business relationship between Central Michigan University and its potential affiliates.

The new policy states “the university will not engage in a business relationship with any person or entity that is a party to a lawsuit against the university or involved in an alternative dispute resolution process against the university.”

Existing university contracts are not affected by this new policy, which was put into effect immediately.

Tom Trionfi, director of contracting, purchasing and health services, said the intent of the policy is to establish in writing the university will not engage in business with a company with which there is a pending legal dispute.

“If we’ve got a situation where someone is upset with us or we’re upset with them, until that’s resolved it just makes more sense not to be in a relationship with them,” he said.

The new policy was implemented because other institutions were inquiring what CMU’s official policy was in situations involving business disputes, Trionfi said. The issue had never been addressed before.

“Right now, we have a few departments asking for clarification, but it looks like it’s not a big deal,” Trionfi said. “We were hoping that wouldn’t be the case with our campus departments … as far as for them to live with the decision.”

He said the policy makes sense from a public relations standpoint and it provides an official protocol to adhere to.

Manuel Rupe, CMU’s general counsel, said the university is currently in legal disputes with Wilcox Professional Services LLC and LaBelle Limited Partnership.

CMU is claiming Wilcox Professional Services made errors during a renovation project in Brooks Hall in August 2008, including installation of underground water pipes and air conditioning ducts.

“Wilcox Professional Services is not presently engaged in litigation with CMU,” Rupe said, “although we are involved with preparing mediation related to the Brooks Hall issues.”

LaBelle Limited Partnership filed a lawsuit against the Board of Trustees in November 2008 over a proposed Holiday Inn hotel and conference center project in the Center for Applied Research and Technology.

LaBelle is accusing the board of an intentional breach of covenants when it gave former University President Michael Rao full authority at a 2008 meeting to sign a lease with Lodgco Management LLC, in order to construct the six-story hotel complex.

According to previously published reports, LaBelle is suing for a halt on leasing the land to other parties and is seeking restitution for legal fees. However, they are not seeking additional money.