Litigation in 1987 was very brisk with an increase in the number of higher education cases reviewed. Cases discussed in this chapter are organized under four major topics: (1) intergovernmental relations; (2) employees, involving discrimination claims, tenured and nontenured faculty, collective bargaining and denial of employee benefits; (3) students, involving admissions, financial aid, First Amendment rights, and academic and disciplinary dismissal; and (4) liability, involving personal injury, workers' compensation, contracts, educational and medical malpractice, negligence, indemnification, antitrust, and patent and trademark issues. Employment cases of particular interest included the setting aside on jurisdictional issues of a court order requiring southern and border states to bring their higher education systems into compliance with Title VI of the Civil Rights Act of 1964. A class of female faculty were decertified because of the decentralized structure and employment decision-making at a university. There were numerous cases in the areas of tenure awards and termination of tenured faculty for cause. Student litigation cases were varied, with loan and scholarship defaults continuing to be the bulk of cases in the financial aid area. Liability cases such as alcohol consumption resulting in death and fraternities serving alcohol to minors were among those before the courts. (MLF)