Earlier this month, a judge for the United States District Court for the District of Massachusetts ruled favorably for Northeastern University in a breach of contract lawsuit stemming from the COVID-19 pandemic and the University’s move from in-person to online classes.  In Chong et al. v. Northeastern University, two students, one an undergraduate and one a graduate student, brought suit against Northeastern—for themselves and all similarly situated students—alleging that Northeastern breached its tuition contract, called an Annual Financial Responsibility Agreement when it switched from in-person classes to online classes and closed its on-campus facilities in March 2020, without offering any refund of tuition or fees.  On October 1st, a judge ruled that that Northeastern was not obligated to refund student tuition, noting that the contract did not promise in-person instruction.  However, the decision did leave open the possibility that students may be entitled to recoup the $60 campus recreation fee.

In reaching its conclusion, the court focused closely on the language of the tuition contract and the fact that it did not include an express right to in-person instruction.  Instead, the contract tied the payment of tuition to the registration of courses and receipt of services, not to the receipt of any particular method of course instruction.  As a result, the court dismissed the claims for breach of contract and unjust enrichment as to tuition.  However, the court held that the plaintiffs may be entitled to recoup the $60 campus recreation fee because the fee was meant to give students the option to attend athletic events and use of the fitness facilities, both of which were closed when Northeastern shut down the campus in March 2020.  According to the ruling, other fees (i.e. student activity fee, student center fee, undergraduate fee) were not refundable because they were paid to “support” certain facilities, not to gain access to any on-campus facility or resource.  As a result of the ruling, the case is able to continue forward but with much less at stake for Northeastern.

Though this is just one decision among similar pending tuition refund lawsuits, it is good news for schools and yet another reminder that contract language matters.

The full text of the court’s decision may be found here.

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Photo of Julie C. Fay Julie C. Fay

Julie is co-chair of Shipman’s Education Department, and a partner in the School Law Practice group, where she represents public and independent schools in a variety of special education and general education law matters, with a particular focus on issues relating to students…

Julie is co-chair of Shipman’s Education Department, and a partner in the School Law Practice group, where she represents public and independent schools in a variety of special education and general education law matters, with a particular focus on issues relating to students with disabilities, student discipline, confidentiality, school governance and policy. Julie frequently represents schools in administrative hearings, including expulsion hearings, special education due process hearings and related proceedings, and is often called upon to guide districts in drafting policies and administrative procedures in all education law areas. As part of her practice, Julie has conducted numerous professional development workshops for clients and other school organizations.

Photo of Sarah Gleason Sarah Gleason

Sarah Gleason is a member of the firm’s School Law Practice Group, where she advises public school districts on a variety of general education, special education and labor and employment issues.  Prior to receiving her J.D., Sarah worked as an elementary school teacher…

Sarah Gleason is a member of the firm’s School Law Practice Group, where she advises public school districts on a variety of general education, special education and labor and employment issues.  Prior to receiving her J.D., Sarah worked as an elementary school teacher, and she brings that unique perspective to her practice as a school law attorney.