Kevin McGuinness claimed on the basis of the Americans With Disability Act that the university had discriminated against him by refusing to give him a passing grade in a biochemistry course.
McGuinness said he should not have been compared to the other students in the school because he suffered from test anxiety.
The failure, combined with "marginal" grades, caused him to fail his first year of medical school. McGuinness plans to appeal the ruling.
The university was in the midst of its summer term when the flooding occurred. Early estimates set the damage in the tens of millions of dollars, and at least five people were killed in neighboring communities, school officials said.
Damage was greatest at the campus book stores, where many of the books ordered for fall classes were destroyed. The flood also damaged at least 13 campus buildings.
No campus deaths were reported.
The decision came after the millionaire was convicted of murder this year. The arena, which was known as The John Eleuthere du Pont Pavilion, will now be called The Pavilion.
The venue was named for du Pont in 1986 when he donated an undisclosed sum of money to Villanova.
Gay and lesbian groups started lobbying the university for the service when its pastor, the Rev. Peter Gomes, acknowledged he is homosexual.
Harvard is not the first university to allow such ceremonies. Stanford University began permitting them in 1993.
The $14 million settlement must still be approved by a state judge, and 24 related lawsuits are still pending against the university's clinics.
-Compiled by Daily Staff Reporter Chris Metinko.