I may not agree with Player very often but I do on this point. The University has simply mitigated their potential loss by agreeing to honor the existing contracts and to pay O'Day an additional year. By doing so they limit the potential for a separate breach of contract suit from O'Day. I would not be surprised if they agree to some buyout with Pflu on the issue of his renewal contract as well to avoid his potential breach of contract suit.
However this will do nothing to limit the probable wrongful discharge suits that both men may be contemplating. The Yellowstone case is the last one in a series of cases of the MT Supreme Court that have taken a dim view of "no cause" terminations since the state changed its constitution in 1972-73 and developed at that point the concept of full legal redress in Article II of the constitution. The modern history of wrongful discharge legislation is because of the concept of full legal redress and there are very few if any states in the Union that have this as a constitutional mandate. The 4 year allowance under the wrongful discharge statutes not only include salary but also ancillary benefits such as health insurance and retirement contribution. At least in Pflu's case there could be an argument for contract incentives and promotions to be included. Admittedly, the terminated individuals have an obligation to try to mitigate the damages, but given the publicity nationally that may be difficult for either to accomplish.
While wrongful discharge cases are rarely brought due to the mitigation clause, the ones that have been successful are usually the high profile ones. If there is no smoking gun, and with all that is on the line, attorney's for both O'Day and Pflu will be looking at these cases very carefully before ever telling their clients to take the initial offer.
Further, I find it a bit disengenuous to have the University be extraordinarily public about the sexual abuse scandal and what it is doing in that regard and then turn around and be silent on the termination or non-renewal of two of the most public figures at the University! IMO it's a bit late to be hiding behind the veil of privacy.