Assuming that the president of the proposed college is being malevolent, petty, malicious, or whatever, if it is true that these adolescents wound up in Fr. U's bed, whatever the excuse, something very wrong occurred, i.e., they wound up in his bed. Assuming that no sexual act whatsoever occurred, the priest was guilty of extremely poor judgment. The provision of alcohol to minors under supervision of church authorities also reflects, at the very least, extremely poor judgment.
The bishop needed to take more drastic action. He did not. In many ways, Bishop Timlin was a superb bishop. That does not excuse this failure. Mitigation, perhaps. Excuse, no!
I agree. But if nothing happened, I don't think the priest was just showing bad judgment--I think he was just striking out. The bad judgment was Timlin's--for buying their dumb story.