Under the terms of the settlement, the university must, within one month, appoint a seven-member committee of three faculty members, three students and one at-large representative to begin crafting the religious accommodation policy. The committee will address "the right of students to request a reasonable educational accommodation based upon sincerely held religious beliefs."

The policy will include guidelines for faculty members considering a requested exemption, and set out an appeals process for students whose requests are denied.

The settlement also extends an invitation for Axson-Flynn to rejoin the Actor Training Program for the upcoming academic year. Axson-Flynn declined the offer in a Monday letter, citing the "controversy and emotional impact that might result from my return to the ATP program, to me as well as to teachers and other students."

Also through the settlement, the university will reimburse Axson-Flynn for tuition and fees paid during the 1998-99 academic year and, through the state's risk management office, pay her attorneys' fees of approximately $250,000.

U.S. District Judge Tena Campbell dismissed the lawsuit in August 2001, ruling that requiring an acting student to use profanity when portraying a character does not infringe on the student's constitutional rights.

The case was resurrected in February when the 10th U.S. Circuit Court of Appeals overturned Campbell's decision. A unanimous three-judge panel ruled that the university may well have violated Axson-Flynn's constitutional rights when it attempted to compel her to speak the offensive words.

The appeals court sent the case back to court for a trial to determine whether the compelled speech was meant for purely educational reasons or if there was an underlying discriminatory purpose. The speech is appropriate, the court said, if it is "reasonably related to legitimate pedagogical concerns."

Assistant Attorney General Alain Balmanno, who represented the U., said the settlement is a win for both sides because it upholds professors' rights to academic freedom while also observing students' rights.

"What we wanted to do was to get the law that was articulated by the 10th Circuit," Balmanno said. "We wanted the law recognized that the faculty has the right to set their own curriculum.

"Public universities have to have the ability to teach students from all walks of life in accordance with academic freedom."

Morris pointed out that the policy will not result in automatic approvals for all requested exemptions. Rather, it will offer formal guidance for faculty members and students when dealing with such sensitive issues.

"We know that bringing together students of different backgrounds and beliefs promotes learning and understanding, but we also know that it can create conflict," Morris said. "It is no secret that religion can be a sensitive, even a divisive, issue, particularly in this community."

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E-mail: awelling@desnews.com