Daily loses lawsuit; judge says the student paper is a governmental body
March 24, 1997
The Iowa State Daily has been declared a governmental body and therefore is subject to Iowa open records laws, a judge said Friday.
District Judge Kurt L. Wilke sided with Partnership Press, Inc., the parent company of The Ames Daily Tribune, The Campus Reader and The University Times. Wilke said the Daily exhibited characteristics of a public entity.
The case named the Iowa State Daily Publication Board and General Manager Janette Antisdel as defendants.
The decision was based on the Daily’s use of Government of the Student Body funds, the university’s payroll system, trademarks, employee benefits, sales tax exemption, phone and mail services, as well as free rent and utilities. Wilke also ruled that the Daily was public because, without the university, “the Daily would not exist.”
“While there is no distinct rule as to when an affiliation is considered a governmental body, the facts in this case clearly require a finding that the Publication Board is subject to public scrutiny as mandated by Iowa Code Chapter 22,” the judge’s decision states.
What exactly the decision means for the Daily isn’t yet clear. Before the decision was filed, Partnership Press officials filed documents with Warren Madden, ISU’s vice president for business and finance, claiming unfair competition. Among other things, Partnership Press is asking that the Daily restrict its recruiting of advertising dollars to campus and the Welch Avenue area and reduce its number of professional employees to three.
The lawsuit and subsequent claim of unfair competition has student newspaper officials across the country keeping a watchful eye. “I think the precedent here is huge,” said Chris Miller, editor of the Daily and and ex-officio member of the Publication Board.
Miller also said other university affiliates like the Daily, such as the ISU Foundation, the ISU Research Park and the Memorial Union, may be affected by the decision. He said the ruling has the potential to mean their books could be deemed public as well.
At the trial last December, Antisdel agreed that the Daily is affiliated with the university, but she said its relationship is only that of a student organization. The Daily received $89,000 from GSB for the 1996-97 school year.
The Publication Board has been directed by Wilke to review which documents previously requested by Partnership Press it feels should still remain confidential. The ruling doesn’t necessarily mean all of the Daily’s records are public. The decision states a hearing, which must be scheduled within 20 days, will be held to resolve any disputes of confidentiality. The hearing should be held within 40 days.
“All along, everything has been disclosed that the lawyers thought should be disclosed,” Antisdel said in reaction to the decision.
The Board has voluntarily abided by open meetings and open records laws, said Antisdel and Publication Board chairman John Hobson.
Antisdel said she is worried the decision will have ramifications that will hurt the Daily. She said she fears Partnership Press officials will use the decision to make gains against the Daily by “coming in and demanding information for competitive advantage.”
“We’re here to educate students, but what’s happening is we’re getting the squelch,” Hobson added.
Gary Gerlach, president of Partnership Press, said the judge made the right decision. “We’re pleased with the ruling,” he said, “because citizens ought to know how their tax dollars are being spent.”
The Daily’s next course of action is unknown. The Publication Board will discuss the decision and the Board’s options Wednesday night.
Under Iowa’s open records law, a governmental body that violates the law must pay the attorney fees of the winning party. In this case, the Daily may have to pay Partnership Press’ fees, which Gerlach said are in excess of $100,000.
Antisdel said some of the basis for Wilke’s decision has changed, including payroll and tax exemption.
Since the ruling was filed, the Daily’s accounts are no longer with the university. Instead of receiving checks and W-2s with the university listed as the employer, Daily employees now work for the Publication Board. Also, Hobson said the Daily has applied for its own tax exemption and is no longer using the university’s exemption.
However, the Daily still uses other university benefits, such as free rent and utilities, campus mail and phone services.