GWU Beats Students' COVID-19 Tuition Refund Suit

By Khorri Atkinson
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Law360 (March 24, 2021, 7:56 PM EDT) -- A D.C. federal judge on Wednesday dismissed a consolidated proposed class action demanding tuition refunds from George Washington University for transitioning to online learning during the pandemic, ruling the institution never promised students in-person classes.

In an eight-page order, U.S. Judge Richard J. Leon agreed with the university that the students who brought the cases last May did not adequately plead their breach of contract claim.

"Plaintiffs point to broad descriptions of GW's campus and common student experiences, as well as customary practice," the judge found. They did argue the differences between GW's in-person and online degree programs, "but these general descriptions and distinctions do not create enforceable obligations on the part of GW."

"Moreover, plaintiffs do not identify any language or other evidence in … university documents or elsewhere indicating GW's intent to be bound to provide in-person instruction," the judge added.

GWU's policy suggests the school reserves the right to make changes to its programs, fees and academic calendar when deemed necessary, and that the school "reserves the right to make changes in programs without notice whenever circumstances warrant such changes," Judge Leon wrote.

And because the judge found no contract exists between the parties, he dismissed the unjust enrichment and conversion claims the students also alleged.

Ivey & Levetown LLP partner Andrew Levetown, an attorney for the proposed class, told Law360 in a statement late Wednesday that GWU students reasonably expected the university experience that was promised to them." With Judge Leon's ruling suggesting "they contracted for something far less ignores the reality faced by thousands of students who incurred significant debt to attend schools like GWU only to sit at home in front of their monitors receiving the type of instruction that online universities charge far less to deliver," the attorney added. 

"While no one is saying that GWU or other schools are responsible for COVID-19, neither are the students, and since the schools were unable to provide the experience promised, fairness and the law should dictate that the schools reduce their fees accordingly," the statement said. "It's too bad that this judge saw otherwise." 

Meanwhile, a university spokesperson told Law360 Thursday that GWU's "top priority is the health and safety of our community," and that the school moved to remote learning in the Spring 2020 semester in response to public health experts' recommendations and orders issued by the D.C. government. 

"We are thankful to our faculty, who worked hard to provide our students with a quality academic experience by distance, and to our staff for providing mechanisms for students to meaningfully engage with each other," the statement added. 

The two cases were filed separately by Mark Shaffer, Margaret Mauldin and Charafeddine Zaitoun on behalf of a proposed class of GWU students who paid tuition, fees and/or housing costs for the spring 2020 semester.

The school had closed its facilities and transitioned to online learning following the outbreak of the pandemic, and some students were ordered to vacate residence halls. The school offered students prorated refunds for housing, dining and parking fees but otherwise declined to refund tuition and other fees, according to court documents.

This denial, the suits alleged, amounted to a breach of express and implied contracts, unjust enrichment, and conversion.

GWU was one of many schools facing proposed class actions from students and parents seeking refunds amid nationwide virus closures. Schools ranging from private Ivy League colleges, such as Harvard and Dartmouth, to public universities across the country have been sued.

So far, at least two — the Regents of the University of California and the Arizona Board of Regents — have escaped lawsuits lodged against them for allegedly withholding campus fee refunds.

The students are represented by Berger Montague PC, Hagens Berman Sobol Shapiro LLP and Ivey & Levetown LLP.

George Washington University is represented by Wilmer Cutler Pickering Hale & Dorr LLP.

The case is Shaffer v. George Washington University, case number 1:20-cv-01145, in the U.S. District Court for the District of Columbia.

--Editing by Philip Shea.

Update: This story has been updated to include comments from the parties. 

For a reprint of this article, please contact reprints@law360.com.

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Case Information

Case Title

SHAFFER v. GEORGE WASHINGTON UNIVERSITY


Case Number

1:20-cv-01145

Court

District Of Columbia

Nature of Suit

Stockholders Suits

Judge

Richard J. Leon

Date Filed

May 01, 2020

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