Facts

The University of La Verne was a private university in La Verne, California, that was founded in 1891. The University decided to transition from in-person instruction to an online learning environment during the initial outbreak of the COVID-19 pandemic during the Spring 2020 semester. Brianna Arredondo was an undergraduate student during the Spring 2020 semester and was enrolled for classes in the Fall 2020. For the Winter and Spring 2020, La Verne charged Arredondo approximately $22,350 in tuition per semester and at least $160 per semester in fees. On August 23, 2020, Arredondo, on behalf of herself and all others similarly situated, filed a putative class action against the University of La Verne, alleging breach of contract, unjust enrichment, and conversion. The class included all University of La Verne traditional undergraduate students excluding students in the Campus Accelerated Program for Adults, who paid tuition and/or the Mandatory Fees at La Verne's Main/Central campus location during the Spring 2020 term/semester.

During the litigation the court granted plaintiff's Motion to for Class Certification and denied defendant's Motion to Decertify the Class. The court denied The University of La Verne's Motion for summary judgment, and granted plaintiff's Motion for Summary Judgment for finding that there was an implied contract between The University of La Verne and its students for the students to receive in-person (on-campus) access and in-person (on-campus) offerings.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendant's failure to provide the in-person, on-campus, services for which tuition and the mandatory fees were intended to cover since approximately March 16, 2020, was a breach of the contract. In particular, plaintiff maintained that defendant's transition from in-person instruction and other in-person educational services to virtual educational services due to the COVID-19 pandemic resulted in The University of La Verne violating its contractual obligations for in-person service during the Spring 2020 semester, despite the fact that the students had paid for in-person education access to the campus and other in-person services as promised in the university's publications and communications.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions and argued that plaintiff failed to allege a contractual obligation and that her claims were non-cognizable claims of educational malpractice.

Result

The case settled with a $8,895,759.00 Conferred Benefit to the approximately 2,061 Settlement Class Members. There was not a single opt-out. The settlement provides Class Members with immediate, valuable relief in the form of: (1) a New Cash Settlement Fund of $2,000,000 which will create a common fund to pay students a pro rata share of the tuition and fees they paid for the Spring 2020 semester; (2) Increased Financial Aid Benefit of $6,348,847.00 in Increased Financial Aid previously distributed as a direct result of the initiation of the Class Action; and (3) Non-Cash Benefits including post-settlement access for all Participating Class Members to ULV's Career Center services, Academic Success services, and a 10% tuition discount on ULV graduate programs valued at approximately $546,912.00.