[For context, Ave Maria University is suing over Obamacare]

Ave Maria University's founder, Tom Monaghan, also owns and governs the entire Town of Ave Maria, Florida and he has banned contraception in the entire town. In fact, the one and only OB/GYN in the Town of Ave Maria will not ... will not ... prescribe contraception medication to any woman for any reason at all.

[...]

The one and only church in the Town of Ave Maria (pictured above) is owned by Tom Monaghan's Corporation, Quasi-Parish of Ave Maria Oratory, Inc. You will notice, Monaghan's church is conveniently located in the center of the town.
Tom Monaghan's ban on contraception for all women living within the Town of Ave Maria, Florida, regardless of their religion shows Tom Monaghan wants to have a strangle-hold on all women, not just his employees.

[...]

The law makes landowners, not registered voters, the ultimate authority in Ave Maria. The law ensures Monaghan and Barron Collier Cos., as the largest landowners, can control Ave Maria's government forever. The law allows the executive committee, controlling the votes of the largest landowner, to choose at least three out of the five seats on the board forever.

The Wall Street Journal reported that Monaghan gloated that he would remain the "largest landowner" so he could retain all control the lifestyle of people who live within the Town of Ave Maria. MONAGHAN: "We'll own all commercial real estate. That means we will be able to control what goes on there. You won't be able to buy a Playboy or Hustler magazine in Ave Maria Town. We're going to control the cable television that comes in the area. There is not going to be any pornographic television in Ave Maria Town. If you go to the drug store and you want to buy the pill or the condoms or contraception, you won't be able to get that in Ave Maria Town."

Tom Monaghan's Strangle-hold of Women at Ave Maria University

[...]

Dress-Code for Female Employees
In 2010, Tom Monaghan mandated that females working at Ave Maria University could no longer wear slacks or pantsuits and could only wear skirts.

Affordable Care Act
Ave Maria University (AMU) is already exempt from the conception mandate in Obamacare but, because they are exempt, they must notify Health & Human Services (HHS) of their exemption so that HHS can make certain that students and employees of AMU can get, if they so choose, contraception at no cost what-so-ever to AMU.

But, AMU allege two main positions:
1) If AMU notify HHS, then they are culpable of "morally wrong" behavior,
2) Even if AMU are not the ones paying for the contraception, it is "morally wrong" for them to notify HHS.