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Law360 (July 9, 2021, 6:29 PM EDT ) A for-profit technical education school partially escaped a student's proposed class action seeking a refund after the COVID-19 pandemic forced instruction online, as a New Jersey federal judge ruled that it wasn't an unreasonable move given the public health crisis.
U.S. District Judge Kevin McNulty on Thursday dismissed John Gaviria's bid to recoup his tuition from Lincoln Educational Services Corp., or Lincoln Tech, finding guidance in the state court case of Beukas v. Board of Trustees of Fairleigh Dickinson University.
The Beukas court ruled in 1992 that the decision to close a dental college wasn't arbitrary, in bad faith or without fair notice, according to the judge."Here, the amended complaint does not allege facts that plausibly show that Lincoln Tech failed to meet its obligations under Beukas. The amended complaint acknowledges, and it can hardly be denied, that the move to virtual learning was occasioned by the COVID-19 pandemic," the judge wrote.
The judge also pointed to Lincoln's Tech's enrollment agreement granting the school the right to "alter" its curriculum.
"Accordingly, I will not deny the motion to dismiss on the basis of the plaintiff having crafted the breach-of-contract allegations to supposedly exclude consideration of the actual contract at issue," the decision said.
The enrollment agreement also helped Lincoln Tech's bid to toss Gaviria's claim for a registration fee refund, with the judge noting that the agreement said multiple times that the fee was nonrefundable.
Lincoln Tech, however, must still face Gaviria's claims for fees relating to student supplies and on-campus technology services because, the judge said, "it is plausible that Lincoln Tech, after closing the campus, did not incur all of the expenses that these fees are meant to cover."
Gaviria claimed in his December lawsuit that he enrolled in Lincoln Tech courses in February 2020, paying more than $19,000 for tuition as well as a $400 student fee, a $150 registration fee and a $96 technology fee.
The following month, the school transitioned classes online and closed the campus in response to the government's shutdown orders targeting nonessential businesses to slow the spread of the coronavirus, the complaint said. Gaviria said that virtual education is "'materially different in practically every aspect.'"
Gaviria asserted claims for breach of contract, unjust enrichment and conversion, which is a claim for the loss of property, in relation to both tuition and fees. His complaint said that while the exact number of proposed class members is unknown, the school has reported that about 10,000 students were enrolled for the 2019-2020 school year.
Representatives for the parties didn't immediately respond to requests for comment on Friday.
Gaviria is represented by Joseph Lipari of The Sultzer Law Group PC.
Lincoln Tech is represented by Melissa Jennifer Brown of Marks O'Neill O'Brien Doherty & Kelly PC.
The case is Gaviria et al. v. Lincoln Educational Services Corp., case number 2:20-cv-18552, in U.S. District Court for the District of New Jersey.
--Editing by Adam LoBelia.
For a reprint of this article, please contact reprints@law360.com.
