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Judge upholds Liberty University’s suit against Falwell

A Lynchburg judge has upheld most of a lawsuit Liberty University filed against its former leader, Jerry Falwell Jr., after an acrimonious parting last year. The lawsuit survived its first round of legal challenges Friday as Falwell’s attorneys argued motions seeking its dismissal before Lynchburg Circuit Judge Fred Watson.

Falwell’s departure from the evangelical school in Virginia founded by his father came after Giancarlo Granda, a younger business partner of the Falwell family, said he had a yearslong sexual relationship with Falwell’s wife, Becki Falwell, and that Jerry Falwell participated in some of the liaisons as a voyeur. Falwell denied the report. Falwell has alleged Granda extorted the family, which Granda denied.

The lawsuit demanding at least $10 million alleged that Falwell breached fiduciary duties to the school and entered into a business conspiracy against it. Fiduciary duties don’t include disclosures of personal issues, even embarrassing ones, Vernon Inge, a lawyer representing Falwell, argued Friday. Falwell couldn’t be engaged in a business conspiracy with Granda against the university when the men were at odds, he argued.

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