A lengthy legal battle between Indiana University and a fired physics professor who was once chancellor of its South Bend campus may finally be approaching an end.

In a 17-page decision last week, the Indiana Court of Appeals ruled for the university in the dispute, which initially led to the removal of the professor, H. Daniel Cohen, as chancellor and subsequently to his dismissal from the faculty.

Mr. Cohen was ousted as chancellor amid allegations that he had sexually harassed a female employee. He was allowed to remain on the faculty, but only on the condition–set forth in a written agreement–that “any future act of sexual harassment or retaliation” would result in his dismissal.

Last week’s ruling, by a unanimous three-judge panel of the court, concerned the university’s effort to have Mr. Cohen’s lawsuit over his firing thrown out. A lower court had refused to dismiss the lawsuit,…

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