Cases closed: Lawsuits involving University of Evansville, Walter McCarty finalized

EVANSVILLE — A pair of lawsuits stemming from the dismissal of former University of Evansville men’s basketball head coach Walter McCarty have been resolved after years of back and forth in federal court.

McCarty was fired in January 2020 during his second season over alleged sexual misconduct that violated Title IX laws. Since then, UE became the subject of two exhaustive lawsuits that each were ruled upon in the past month.

The first came in April 2021 from a former student, who was a UE athletics trainer identified in court records only as "Jane Doe." She alleged she was sexually assaulted by McCarty and claimed UE failed to provide a safe environment.

After two years and more than 140 court filings, the parties reached a settlement and the case was dismissed with prejudice on May 16, meaning the ruling is permanent. Terms of the settlement agreement are confidential; neither party has been willing to comment further.

The second lawsuit came from McCarty in December 2021 over a contract dispute. He alleged UE owed him tens of thousands of dollars in performance-based incentives after he was fired for cause.

On Wednesday, a judge in the U.S. District Court Southern District of Indiana ruled in favor of UE, stating McCarty was not entitled to any bonuses beyond those already paid.

Thus, these rulings could be the end of a years-long saga into the dismissal of McCarty, an Evansville native who won a national championship as a player at Kentucky in 1996 and went on to have a decade-long NBA career, most notably with the Boston Celtics, before returning home to coach the Purple Aces.

Jane Doe case dismissed after settlement

It's unclear why the former UE student settled a lawsuit that appeared headed to trial after two years of buildup and allegations in the U.S. District Court Southern District of Indiana.

She was seeking an unspecified amount of money including "actual damages, compensatory damages, court costs, attorneys’ fees, and pre- and post-judgment interest." She sued UE because she believed it ignored a pattern of behavior from McCarty. Prior to when she claimed she was sexually assaulted by him at his home, at least six women had reported to the university they were victims of sexual harassment or misconduct by McCarty.

Inside Jane Doe's deposition: New allegations emerge in lawsuit involving Walter McCarty, University of Evansville

Doe argued UE did not provide a safe environment for her under Title IX because she was a student athletics trainer assigned to men’s basketball and regularly interacted with McCarty. Doe alleged in court documents that he sent her inappropriate messages on Instagram, Snapchat and text, which escalated to him pressuring her to visit his home on Dec. 9, 2019 — the night she claims she was assaulted.

Doe's attorney is Dallas-based victim's rights attorney Michelle Simpson Tuegel, who represented sexual abuse survivors against Michigan State University and the U.S. Olympic Committee during the case involving convicted rapist and former doctor Larry Nassar. Meanwhile, UE hired a team of attorneys from the Husch Blackwell law firm, which has offices in Chicago and Kansas City.

They each submitted hundreds of pages of court documents arguing their different viewpoints.

Then, on Feb. 22, they quietly notified the court they had reached a settlement. Tuegel's law firm has not responded to multiple requests for comment.

Judge rules in favor of UE over McCarty’s contract dispute

McCarty signed a five-year contract when he was hired by UE in 2018 and it involved a pair of bonus provisions he negotiated:

1. He would receive 25% of any fundraising profit as an “exceptional fundraising bonus.”

2. He would get 25% of all ticket sales above UE’s goal of $655,187 as a “ticket sales bonus.”

To earn his fundraising bonus, McCarty was required by contract to submit a fundraising plan, including a schedule of events with revenue and expense budgets. Court documents state McCarty produced no such document, only “a wish list of program improvements” so he is not eligible for the bonus.

Court documents also show that UE’s ticket sales during his two years at the helm only surpassed the agreed-upon threshold for the 2019-20 season, during which McCarty was fired. Sales through Ticketmaster were $27,235.22 above goal, so McCarty was entitled to a bonus of $6,808.96.

UE paid him after firing him with cause. And yet, McCarty sent the check back uncashed. The summary judgment stated: “What does that matter? He could have burned it and might as well have — the contract was satisfied when the University tendered payment in full.”

UE Chief Communications Officer Noah Alatza provided the following statement to the Courier & Press: “The contract between Mr. McCarty and the University of Evansville was clear that he was not entitled to any additional financial compensation. We are very pleased that the district court agreed with us and fully dismissed Mr. McCarty’s claims against the University.”

Chapter 7 Trustee John O. Desmond took over McCarty’s estate when he filed for bankruptcy and, as a result, was substituted as the plaintiff in McCarty's lawsuit against UE. The Courier & Press reported last August that this lawsuit had been settled out of court. However, that was “contingent upon the inclusion of certain non-monetary terms.” And the parties were not able to negotiate an agreement, so the case ultimately continued for the court to make a ruling.

McCarty has since returned to the basketball world as the head coach of a professional team in Mexico, Rayos de Hermosillo.

This article originally appeared on Evansville Courier & Press: Lawsuits involving University of Evansville, Walter McCarty finalized