Besides all of the joking...
I think the legal basis for the award was that the university per se allowed free speech demonstrations, then renegged on the allowance for these students. Then the chancellor personally gave the order for the police to disperse the students, even though they were not detaining anyone or blocking the ability of anyone to travel (by sitting on a random sidewalk).
The police said they sprayed these students because they had supposedly "pinned them in," but somehow I don't see spraying only the sitting students really had anything to do with that, and apparently the legal system felt the same way.
$1,000,000 dumb move, and of course the cops don't care because the taxpayers always pick up the tab.
Good times.
"..the right of the people peaceably to assemble"
Blocking access to travel, ie roads and sidewalks, and verbally telling the Police you are blocking that access for them, then surrounding them, is not "peaceful assembly"..