[Firehouse]

You brought up two issues: first, the example you cited about the University of Delaware issuing warnings to parents about "illegal" organizations, and second, you asked if I knew of any chapters who sued the university and won.
Answer to the second question: Sure, lots of them. The best course is to get along and do almost anything you can to avoid having to "lawyer up" against the university, but when it's necessary in order to survive, then the Greeks almost always win. There was a case in California maybe ten years ago (cited in an issue of Fraternal Law) where a Phi Kappa Tau chapter was hammered by their school for some politically incorrect party t-shirts. Instead of merely chastising the boys and lecturing them on the incivility of their shirts and having them do some community service, the mid-level self-important administrators puffed themselves up and booted Phi Tau off campus. Phi Tau sued. Not only were they reinstated, but they were entertained by the delicious sight of the Dean Of Students attending court-mandated classes on the First Amendment.
Last year at Auburn, we all followed the saga of the Delta Sigma Phis and Beta Theta Pis. Party pix of both fraternities went out on the web showing partygoers in a variety of racist, hurtful and inappropriate costumes at Halloween parties. As could be expected, instead of using this embarrasing event as an instrument to teach tolerance and shame the participants into better behavior, the school administration flew into paryoxisms of self-righteousness and grandstanding, and ordered both fraternities expelled.
The national offices fled as they will do, but the the local alumni brought in lawyers who explained in detail to the university just how many millions in personal and punitive damages they would pay out to those memebrs they had slandered and damaged. While the behavior was in fact vile, it was also in fact protected. Almost immediately the Betas and the Delta Phis were back in good standing. Oh, they had to do a few public mea culpas, but no harm done. My guess is also that they will never repeat the same behavior again.
Several years ago at Georgia, we're all familiar with the story of the sorority accused of racism concerning the selection or rejection of a rushee. Again, the school over-reacted, began to grandstand and tried to pillory the sorority. The alumni brought in one lawyer - one - who spoke very softly to the administration and asked only one question: do you or do you not maintain a separate classification of Historially Black sororities within your Greek Life heirarchy, and is it not true that with your blessing they conduct a separate rush? Blink your eyes, no more threat. Again, going to court IS THE LAST RESORT! But you asked for examples. Only the Phi Taus actually went to trial.
Your first point had to do with the University of Delaware sending letters to parents about unrecognized ("illegal") clubs. The issue here is the word "illegal". There are no "illegal" clubs; the University of Delaware has no authority to determine their legality. The University does have every right to make parents aware of any rogue organizations which might attempt to pass themsleves off as being officially affiliated with the University. We have that at my school right now. The Dean of Students put up posters during rush warning students against joining any of the three unrecognized/suspended fraternities. We have a rogue chapter of SAE here called The Lion's Club. My opinion is that it's an uncalled-for meanness on the school's part, but there may be legal reasons; they may feel they have to protect the university's name and trademarks. I don't know. They have the right to make anyone aware that those organizations were closed for cause and are not afiliated with my school.
What the school DOES NOT have the right to do is to punish any student for joining one of those clubs or for being a member. A lot of people worked very ahrd for a long time to get the Freedom of Association Act passed through congress in 1996. Remember: the school attorneys know what your rights are. Unfortunately, a few administrators may count on the fact that you don't know.