Opinion ID: 1423764
Heading Depth: 2
Heading Rank: 1

Heading: Western Kentucky University's Immunity

Text: WKU is a state agency because it serves as a central arm of the state performing the essential function of educating state citizens at the college level and because it receives money from the state treasury in support of this function. Withers v. University of Kentucky, 939 S.W.2d 340, 343 (Ky.1997). Further, KRS 44.073(1) says that WKU is a state agency, as a state institution of higher education. Pursuant to KRS 164.300, WKU must also render the supplemental service of establishing and maintaining dormitories. It is therefore entitled to governmental immunity unless the functions at issue can be deemed proprietary. In order to obtain funding necessary to refurbish its dormitories, which support the function of educating state citizens, WKU created the WKU Student Life Foundation, Inc. to hold title to the dormitory properties. The carefully crafted Articles of Incorporation, as finally amended on July 23, 1999, state at Section IV(1) and (2) that the corporation was created to at all times operate in connection with, and for the exclusive benefit and support of, Western Kentucky University Foundation, a Corporation; . . . [and] to either perform functions of or carry out the purposes of the Western Kentucky University Foundation, a Corporation. . . . The Articles go on to enumerate several specific purposes of SLF, including maintaining non-profit status and owning certain student residential and other facilities at Western Kentucky University. . . . By this ownership, SLF could use Warren County's bonding authority to finance the renovations of the dormitories. WKU subsequently transferred the properties to SLF. In turn, SLF entered into a Management Agreement with WKU on November 20, 2000, whereby WKU would operate the dormitories, collect rent and hire and supervise staff. Autry and White argue that this arrangement makes WKU an agent of SLF, since WKU assumed the management and operating duties of properties owned by SLF, and that this amounts to a proprietary function rather than a governmental one. This argument fails. Regardless of the form of the agency relationship between WKU and SLF, the substance of their relationship is that SLF exists only to serve the University's needs, and the University, by actually managing the dorms, is performing its required statutory duty. Providing the dorms enables the University to give instruction at the college level, in residence. . . . KRS 164.300. Only WKU can run an official residence hall for the benefit of the students. Other providers of housing do so as a business, for profit; WKU does so as part of its definitive function. Viewed in this light, WKU clearly is entitled to governmental immunity. Autry and White also complain that the trial court erred in dismissing WKU before discovery was completed, arguing that further facts might be developed that would shed light on the true relationship between WKU and SLF. However, a careful review of the record indicates that the Articles of Incorporation of SLF and the Management Agreement between SLF and WKU were in the record and before the trial court. These documents define the relationship as a matter of law. WKU does not dispute that it was in charge of managing the dorms and making policy. SLF was formed as a nonprofit organization with a specific and limited purpose. Further discovery could not provide evidence that would change the inherent nature of WKU as a state agency performing a required statutory duty for a public purpose. The Court of Appeals did not err in affirming the trial court's dismissal of WKU.