University Business Publishes Akin Gump Article on Prospects for Universities Facing Class Actions over COVID-19 Closures

University Business has published the article “Is your institution refunding any portion of fees and tuition paid?” written by Akin Gump litigation partners Hyongsoon Kim, Robert Pees and Anthony Pierce and counsel Molly Whitman. The article looks at the issue of whether institutions of higher learning must refund, due to COVID-19 closures, any portion of tuition and fees already paid.

The authors write that colleges and universities “that have refunded less than 100 percent of paid tuition and fees face the prospect of class actions—and some have already been filed.” They predict that additional such cases “are a certainty.”

The article describes the difference between suing a public versus private institution. It then offers some strategies to defend against a claim, highlighting the importance of “obtaining early dismissal or defeating class certification.”

The article concludes with the observation that “defendant universities may have a strong argument that performing under any purported contract has become impossible,” in light of the public health emergency declaration by the World Health Organization. While moving courses online will “support a showing that universities have mitigated the situation to the best of their abilities. … if the university has stated a refund policy in its materials, a court may find those materials binding on students.”

To read the client alert on which the article is based, please click here.