Facts

In 2000, American Home of Sciences Inc. sought to open a satellite campus in Los Angeles. American Home contracted with California School of Modern Sciences Inc., one of its employees, and its various owners and officers to provide services in an administrative and marketing capacity. Pursuant to the contract, California School agreed to handle financial matters pertaining to enrollment and distribution of funds to American Home and to comply with legal and regulatory matters. American Home eventually filed a lawsuit against California School, alleging fraud and breach of contract.

PLAINTIFF'S CONTENTIONS:
The plaintiff claimed that the defendant lost its Title IV certification and failed to inform it of the loss. The plaintiff also claimed that it lost $60,000 that it was entitled to because the defendant's employee and officers made unauthorized deals with the defendant. The plaintiff further claimed defamation in connection with tactics employed by the defendants to get students to transfer from the satellite campus to the main campus. In addition, the plaintiff claimed the defendant failed to pay certain fees and inappropriately required students registering for classes to do so at the main campus. This action interfered with the plaintiff's earnings.

DEFENDANT'S CONTENTIONS:
The defendants claimed that the plaintiff was the one who breached the contract. They contended that they abided by the terms of the contract which required students to spend a quarter of their time attending classes at the main campus. Further, maintaining their Title IV status was not an express requirement of the contract. In addition to these claims, the defendants contended that the plaintiff distributed fake diplomas with the defendants' name.

Damages

The plaintiff sought general damages in the amount of $760,000 and special damages in the amount of $182,500. The defendants claimed compensatory damages in the amount of $150,000, in part, for loss of funds due to low student enrollment at the main campus that resulted from the plaintiff's alleged diversion tactics.

Result

$1,295,000.

Length

one week