Professor refuses to teach another course due to breach of contract
Crazy as it sounds, I side with the professor. The administration is attempting to alter the terms of her contract. If it matters that much, cancel the contract and rehire. But don't tell an employee to do something clearly against the contract.
Pollyannish as it sounds, I hope the economic downturn and the new Obama Administration will result in an influx of government money for higher education, GI Bill-style. Aggressive action like this by higher ed administration lackeys would set a precedent of "Forget the contract; do what I say."