This is why tort suits get so outrageous. The principal clearly thought he could get away with that nonsense, so he was imprudent as well as unfair, and he abused his position. Unfortunately, it will probably be the school system (the tax payers) who pay.
throw this pervert in jail im sure there are some perverts in there will make him feel right at home being touchy feely like bend over and pick up the soap
Not necessarily. If a claim is filed to cover legal costs associated with the abuse, and the insurance company determines that the district was remiss in not reporting this matter, the insurance company could decide they will not pay. If so, the principal might be sued in an individual capacity. This happened in the Roslyn School District in Long Island, NY - the insurance company refused to pay certain claims (related to embezzlement, etc) - so you ended up with employees being responsible personally for adverse financial rulings. I believe even some Board of Education Members are being sued in an individual capacity.