Its very simple:
When they decided they had to fire Jurell before he killed their case with his deposition, they started digging for dirt on him because they needed grounds for his termination, because he had tenure.
In their digging, they found what they needed. They don't say how they found out that he took Diane to get the abortion, but the point is, they were vigorously searching for something to justify his firing.
Once they found out what he did, they realized he needed to leave the school even though the case had been settled, because if it's one thing administrators hate, it's teachers who actually care about the kids. So they figured they had a problem on their hands, and had to get rid of him.
It's sad that administrators have to think that way, but remember, they have to be politicians as well, and they have too much to protect to let one teacher with a greater set of ideals threaten to illuminate the beaurocracy that exists in the school.
This movie was WAY ahead of its time, because this garbage is going on right now. I know teachers who say that they are not allowed to fail students. This certainly didnt seem to be the case when I was in school, a few years after this movie was made. But thats the way it is now, right up to the administration making a deal with the union to stay out of their way and let Jurel fry. Burke says it to Roger: "I hate making deals, but I sure as hell don't want anyone around who could hurt us the next time." Next time=Eddie Plikian.
For a comedy, this movie is disturbing as hell, and while it might not have been what it was like then, it sure as hell is what it's like now.
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