UNCW Student Lawsuit Over COVID-19 Tuition Refunds
UNCW Student Lawsuit Over COVID-19 Tuition Refunds
Plaintiff Gina McAllister (“Plaintiff”) by and through undersigned counsel, brings this
action against The University of North Carolina System and its constituent institution, University
of North Carolina Wilmington (“Defendants” or the “University”) on behalf of herself and all
others similarly situated, and makes the following allegations based upon information, attorney
PRELIMINARY STATEMENT
Defendants to do, this decision deprived Plaintiff and the other members of the Class
from recognizing the benefits of in-person instruction, housing, meals, access to campus
facilities, student activities, and other benefits and services in exchange for which they
3. Defendants have either refused to provide reimbursement for the tuition, housing, meals,
fees and other costs that Defendants are no longer providing, or have provided inadequate
and/or arbitrary reimbursement that does not fully compensate Plaintiff and members of
4. This action seeks refunds of the amount Plaintiff and other members of the Classes are
5. Plaintiff is not suing to recover monies paid by taxes to the University; rather, Plaintiff
files suit against the Board of Governors of The University of North Carolina System, a
body politic and corporate that may be sued, for specific disgorgement of fees and
monies paid by students and their parents, guardians, and families for access and services
not received.
PARTIES
university system for the state of North Carolina, consisting of 17 constituent institutions
7. The University of North Carolina System is governed by the Board of Governors of the
General Statutes.
and capable in law to bargain, sell, grant, alien, or dispose of and convey and assure to
the purchasers any and all such real and personal estate and funds as it may lawfully
acquire when the condition of the grant to it or the will of the devisor does not forbid it;
and shall be able and capable in law to sue and be sued in all courts whatsoever; and shall
have power to open and receive subscriptions, and in general may do all such things as
are usually done by bodies corporate and politic, or such as may be necessary for the
9. The Board of Governors is vested with the statutory authority to delegate any part of its
authority over the affairs of any institution to the board of trustees or, through the
President, to the chancellor of the institution in any case where such delegation appears
manner. The Board may delegate any part of its authority over the affairs of The
University of North Carolina to the President in any case where such delegation appears
and expeditious manner. Any delegation of authority may be rescinded by the Board at
University of North Carolina System, and is located and operating in New Hanover
County.
11. Upon information and belief, Defendants are eligible to receive federal stimulus under
the CARES Act. The CARES Act directs that approximately $14 billion dollars be
distributed to colleges and universities based upon enrollment and requires that
aid grants to students for expenses related to the disruption of campus operations due to
COVID-19.
12. Plaintiff is an individual and a resident and citizen of the state of North Carolina.
14. Plaintiff has paid substantial tuition for the Spring 2020 semester either out of pocket or
15. There are hundreds, if not thousands, of institutions of higher learning in this country.
16. Some institutions of higher learning provide curriculum and instruction that is offered on
a remote basis through online programming which do not provide for physical attendance
by the students.
18. Plaintiff and members of the Proposed Tuition Class did not choose to attend another
institution of higher learning, or to seek an online degree, but instead chose to attend
19. Common sense would dictate that the level and quality of instruction an educator can
provide through an online format is lower than the level and quality of instruction that
20. Moreover, the true college experience encompasses much more than just the credit hours
ii. Access to facilities such as computer labs, study rooms, laboratories, libraries, etc;
21. Defendants have already recognized the inherent difference in value between online and
in-person education.
22. Even before the COVID-19 pandemic, Defendants offered an online degree track, called
their distance education program, alongside their standard on-campus degree program.
23. Although these same programs, upon information and belief, confer the same degree,
24. Indeed, the cost of tuition for an online degree from the University is roughly 18%
cheaper than the tuition for the same degree earned on campus:1
25. Plaintiff’s education has transitioned from in-person hands on learning to online
instruction.
26. Plaintiff’s online instruction is not commensurate with the same classes being taught in
1
https://uncw.edu/finaid/cost.html
27. For example, only one of Plaintiff’s classes is currently being taught live through online
instruction. One of Plaintiff’s classes is pre-recorded and available for her to view but
not participate in, and the professors in her other four classes are merely posting
28. In addition to tuition, Plaintiff was required to pay certain mandatory fees, including but
29. The omnibus Mandatory Fee is specifically designated by the university to cover the
2
https://uncw.edu/studentaccounts/documents/2019-2020tuitionug.pdf
31. As a result of being moved off campus, Plaintiff no longer has the benefit of the services
32. In addition to the tuition and fees described above, Plaintiff paid “Room and Board” fees
for the opportunity to reside in campus housing and for access to a meal plan providing
33. At Defendants' request and direction, Plaintiff moved out of on-campus housing prior to
March 21, 2020 and has not lived on campus since, nor had access to any meals under her
34. This Court has jurisdiction over this action pursuant to the Class Action Fairness Act
citizenship from one Defendant, there are more than 100 Class members, and the
35. This Court has personal jurisdiction over Defendants because Defendants are domiciled
36. Venue is proper in this District under 28 U.S.C. § 1391(b) because a substantial part of
the events or omissions giving rise to the claims occurred in this District, and because
Defendants are a body politic domiciled and doing business in this District.
FACTUAL ALLEGATIONS
37. Upon information and belief, Defendant’s Spring term began with the first day of classes
38. Upon information and belief, Defendant’s Spring term was scheduled to conclude with
the last day of examinations on or about May 7, 2020 and commencement ceremonies on
39. Accordingly, Defendant’s Spring semester was scheduled and contracted to consist of
40. Defendant’s Spring break began on or about March 9, 2020 and was supposed to end on
41. However, as a result of the COVID-19 pandemic, Defendant announced on March 12,
2020 that it was extending spring break for an additional week moving nearly all classes
online for the remainder of the semester starting March 23, 2020. Defendant “strongly
42. On March 14, 2020, the University announced the closure of the Rec Center and the
43. On March 17, 2020, based on guidance from the UNC System, the University announced
that students would be required to return to their permanent residences or remain in their
44. On or about March 31, 2020, Defendants announced that they would were “committed to
pro-rata reimbursements of housing and dining funds that have been unused as a result of
3
https://uncw.edu/reg/calendars-events.html
4
Id.
5
Id.
6
https://uncw.edu/news/2020/03/update-new-information-re.-campus-response-to-coronavirus.html
7
https://uncw.edu/news/2020/03/update-coronavirus-impacts1.html
8
https://uncw.edu/news/2020/03/update-impacts-of-unc-system-guidance.html
9
https://uncw.edu/news/2020/03/message-from-chancellor-sartarelli-re-refunds.html
Defendants announced that they would only be pro-rating housing and dining refunds
46. This fixed date was arbitrary, unfair, and unlawful, resulting in wholly insufficient
47. Plaintiff and Members of the Class bargained and paid for housing and meals on the
expectation that they would return from spring break on or about March 13, 2020.
48. However, they did not receive the benefit of their bargain because they were first
49. That Defendants’ did not “officially” close on-campus housing and dining until March
23, 2020 does not negate the fact that students were deprived of housing and meals prior
to that date based on instruction from Defendants and the fact that it was recognized by
all parties that it was unsafe for students to return to campus from Spring Break.
50. Accordingly, the housing and meal refunds being offered by Defendants do not apply to
the full cost of housing and dining funds “that have been unused as a result of the
51. Likewise, Defendants have refused and continue to refuse to offer any pro-rated tuition
52. Although Defendants are still offering some level of academic instruction via online
classes, Plaintiff and members of the proposed Tuition Class have been and will be
deprived of the benefits of on campus learning as set forth more fully above.
53. Moreover, the value of any degree issued on the basis of online or pass/fail classes will
semester students, they have announced that students expecting to take Summer classes
in person (who will now be forced to take them online) will be charged the distance
55. Upon information and belief, the only difference between Defendants’ decision to
discount online classes for the Summer and not discount online classes for the Spring is
that Defendants have already collected tuition for the Spring Semester and the Spring
Semester students have no recourse, whereas Defendants have not yet collected tuition
for the Summer term and Defendants know many students will not agree to pay full price
56. Finally, Plaintiff and members of the proposed Fees Class have been and will be deprived
of utilizing services for which they have already paid, as set forth in Paragraphs 28-30
above.
57. To date, Defendants have not announced any plans to discount these fees.
58. Defendants’ decision to not discount these fees stands in stark contrast to their prior
course of conduct, namely that they do not and have never charged the omnibus
mandatory fee for students in the distance education program12 because Defendants
11
https://uncw.edu/coronavirus/faqs.html
12
https://uncw.edu/finaid/cost.html
13
https://uncw.edu/coronavirus/faqs.html
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59. Plaintiff brings this action on behalf of herself and as a class action, pursuant to the
provisions of Rule 23 of the Federal Rules of Civil Procedure on behalf of the following
Classes:
All people who paid tuition for or on behalf of students enrolled in classes at the
University for the Spring 2020 semester who were denied live in-person
instruction and forced to use online distance learning platforms for the latter
portion of that semester.
All people who paid fees for or on behalf of students enrolled in classes at the
University for the Spring 2020 semester.
All people who paid the costs of on-campus housing for or on behalf of students
enrolled in classes at the University for the Spring 2020 semester who moved out
of their on-campus housing prior to the completion of the semester because of
Defendants' policies and announcements related to COVID-19.
All people who paid costs for or on behalf of students for meals and on-campus
dining at the University for the Spring 2020 semester.
60. Excluded from the Classes are The Board of Governors of the University of North
Carolina and any of their respective members, affiliates, parents, subsidiaries, officers,
directors, employees, successors, or assigns; and the judicial officers, and their immediate
family members, and Court staff assigned to this case. Plaintiffs reserve the right to
modify or amend the Class definitions, as appropriate, during the course of this litigation.
61. Certification of Plaintiff’s claims for class-wide treatment is appropriate because Plaintiff
can prove the elements of her claims on a class-wide basis using the same evidence as
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62. This action has been brought and may be properly maintained on behalf of the Class
63. The members of the Class are so numerous and geographically dispersed that individual
joinder of all Class members is impracticable. Plaintiff is informed and believes there are
thousands of members of the Class, the precise number being unknown to Plaintiff, but
such number being ascertainable from Defendants' records. Class members may be
dissemination methods, which may include U.S. mail, electronic mail, internet postings,
64. This action involves common questions of law and fact, which predominate over any
ii. Whether there is a difference in value between online distance learning and live
in-person instruction;
iii. Whether Defendants breached their contracts with Plaintiff and the other members
of the Tuition Class by retaining the portion of their tuition representing the
difference between the value of online distance learning and live in-person
instruction;
Plaintiff and the Tuition Class representing the difference between the value of
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v. Whether Defendants breached their contracts with Plaintiff and the other members
of the Fees Class by retaining fees without providing the services the fees were
intended to cover;
vi. Whether Defendants were unjustly enriched by retaining fees of Plaintiff and the
other members of the Fees Class without providing the services the fees were
intended to cover;
vii. Whether Defendants breached their contracts with Plaintiff and the other members
of the On-Campus Housing Class by not refunding them the full pro-rated amount
of their housing expenses when the pandemic prevented them (or the students on
and the other members of the On-Campus Housing Class while such members (or
the students on whose behalf they paid) moved out of their on-campus housing;
ix. Whether Defendants breached their contracts with Plaintiff and the other members
of the Meals Class by retaining costs for food and on-campus dining without
and the other members of the Meals Class without providing the food and on-
xi. Whether certification of any or all of the classes proposed herein is appropriate
xii. Whether Class members are entitled to declaratory, equitable, or injunctive relief,
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xiii. The amount and nature of relief to be awarded to Plaintiff and the other Class
members.
65. Plaintiff’s claim is typical of the other Class member’s claims because, among other
things, all Class members were similarly situated and were comparably injured through
66. Plaintiff is an adequate Class representative because her interests do not conflict with the
interests of other members of the Class she seeks to represent. Plaintiff has retained
prosecute the action vigorously. The Class’s interests will be fairly and adequately
67. A class action is superior to any other available means for the fair and efficient
in the management of this class action. The damages or other financial detriment
suffered by Plaintiff and other Class members are relatively small compared to the
burden and expense that would be required to individually litigate their claims against
68. Even if Class members could afford individual litigation, the Court system likely could
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contrast, the class action device presents far fewer management difficulties and provides
69. To the extent that a Class does not meet the requirements of Rules 23(b)(2) or (b)(3),
Plaintiff seeks the certification of issues that will drive the litigation toward resolution.
70. The University has acted or refused to act on grounds generally applicable to Plaintiff and
the other Class members, thereby making appropriate final injunctive relief and
declaratory relief, as described herein, with respect to the Class members as a whole.
71. Plaintiff incorporates by reference all preceding allegations as though fully set forth
herein.
72. Plaintiff brings this count on behalf of herself and other members of the Tuition Class.
73. Plaintiff and the Tuition Class entered into contracts with the University which provided
that Plaintiff and other members of the Tuition Class would pay tuition for or on behalf of
students and, in exchange, the University would provide live in-person instruction in a
physical classroom.
74. Plaintiff and other members of the Tuition Class fulfilled their end of the bargain when
they paid tuition for the Spring 2020 semester either out-of-pocket or by using student
loan financing.
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classes for the Spring 2020 semester to online distance learning platforms, without
76. The University retained tuition monies paid by Plaintiff and other members of the Tuition
77. Plaintiff and other members of the Tuition Class have suffered damage as a direct and
proximate result of Defendants' breach, including but not limited to being deprived of the
value of the services the tuition was intended to cover, namely live in-person instruction
in a physical classroom.
78. As a direct and proximate result of Defendants' breach, Plaintiff and the Tuition Class are
legally and equitably entitled to damages, to be decided by the trier of fact in this action,
to include but not be limited to disgorgement of the difference between the value of the
online learning which is being provided versus the value of the live in-person instruction
79. Plaintiff incorporates by reference all preceding allegations as though fully set forth
herein.
80. Plaintiff brings this count on behalf of herself and other members of the Tuition Class.
81. The University has received a benefit at the expense of Plaintiff and other members of the
82. Plaintiff and other members of the Tuition Class paid substantial tuition for live in-person
instruction in physical classrooms and did not receive the full benefit of the bargain.
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84. Plaintiff and other members of the Tuition Class did not confer this benefit gratuitously.
86. Defendants have retained this benefit, even though Defendants have failed to provide the
access and services for which the tuition was collected, making Defendants' retention
87. Equity and good conscience requires that the University return a portion of the monies
89. Plaintiff incorporates by reference all preceding allegations as though fully set forth
herein.
90. Plaintiff brings this count on behalf of herself and other members of the Fees Class.
91. Plaintiff and the Fees Class entered into contracts with the University which provided
that Plaintiff and other members of the Fees Class would pay certain fees for or on behalf
of students and, in exchange, the University would provide access and services related to
those fees, such as access to student activities, athletics, wellness centers, libraries, etc.
92. Plaintiff and other members of the Fees Class fulfilled their end of the bargain when they
paid these fees for the Spring 2020 semester either out-of-pocket or by using student
financing, or otherwise.
93. The University breached the contract with Plaintiff and the Fees Class by moving all
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evicting students from campus, and closing most campus buildings and facilities.
94. The University retained fees paid by Plaintiff and other members of the Fees Class,
95. Plaintiff and other members of the Fees Class have suffered damage as a direct and
proximate result of Defendants' breach, including but not limited to being deprived of the
value of the benefits and services the fees were intended to cover.
96. As a direct and proximate result of Defendants' breach, Plaintiff and the Fees Class are
legally and equitably entitled to damages, to be decided by the trier of fact in this action,
to include but not be limited to disgorgement of the pro-rata amount of fees that was
collected but for which access and services were not provided.
97. Plaintiff incorporates by reference all preceding allegations as though fully set forth
herein.
98. Plaintiff brings this count on behalf of herself and other members of the Fees Class.
99. The University has received a benefit at the expense of Plaintiff and other members of the
100. Plaintiff and other members of the Fees Class paid substantial student fees for on
campus benefits and services and did not receive the full benefit of the bargain.
101. Plaintiff and other members of the Fees Class conferred this benefit on
102. Plaintiff and other members of the Fees Class did not confer this benefit
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104. Defendants have retained this benefit, even though Defendants have failed to
provide the access and services for which the fees were collected, making Defendants'
105. Equity and good conscience requires that the University return a pro-rata portion
of the monies paid in fees to Plaintiff and other members of the Fees Class.
107. Plaintiff incorporates by reference all preceding allegations as though fully set
forth herein.
108. Plaintiff brings this count on behalf of herself and other members of the On-
109. Plaintiff and the On-Campus Housing Class entered into contracts with the
University which provided that Plaintiff and other members of the On-Campus Housing
Class would pay certain fees for or on behalf of students and, in exchange, the University
110. Plaintiff and other members of the On-Campus Housing Class fulfilled their end
of the bargain when they paid these fees for the Spring 2020 semester either out-of-
111. The University breached the contract with Plaintiff and the On-Campus Housing
Class by moving all classes for the Spring 2020 semester to online distance learning
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112. The University retained fees paid by Plaintiff and other members of the On-
Campus Housing Class, without providing them the full benefit of their bargain.
113. Plaintiff and other members of the On-Campus Housing Class have suffered
damage as a direct and proximate result of Defendants' breach, including but not limited
to being deprived of the value of the housing that the board fees were intended to cover.
114. As a direct and proximate result of Defendants' breach, Plaintiff and the On-
Campus Housing Class are legally and equitably entitled to damages, to be decided by
the trier of fact in this action, to include but not be limited to disgorgement of the pro-rata
amount of fees that were collected but for which access and services were not provided.
115. Plaintiff incorporates by reference all preceding allegations as though fully set
forth herein.
116. Plaintiff brings this count on behalf of herself and other members of the On-
117. The University has received a benefit at the expense of Plaintiff and other
118. Plaintiff and other members of the On-Campus Housing Class paid substantial
board fees for the right to occupy on-campus housing and did not receive the full benefit
of the bargain.
119. Plaintiff and other members of the On-Campus Housing Class conferred this
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120. Plaintiff and other members of the On-Campus Housing Class did not confer this
benefit gratuitously.
122. Defendants have retained this benefit, even though Defendants have failed to
provide the housing and other amenities for which the fees were collected, making
123. Equity requires that the University return a pro-rata portion of the monies paid in
125. Plaintiff incorporates by reference all preceding allegations as though fully set
forth herein.
126. Plaintiff brings this count on behalf of herself and other members of the Meals
Class.
127. Plaintiff and the Meals Class entered into contracts with the University which
provided that Plaintiff and other members of the Meals Class would pay certain fees for
or on behalf of students and, in exchange, the University would provide meals and on-
128. Plaintiff and other members of the Meals Class fulfilled their end of the bargain
when they paid these fees for the Spring 2020 semester either out-of-pocket or by using
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moving all classes for the Spring 2020 semester to online distance learning platforms,
constructively evicting students from campus, and closing most campus buildings and
130. The University retained fees paid by Plaintiff and other members of the Meals
131. Plaintiff and other members of the Meals Class have suffered damage as a direct
and proximate result of Defendants' breach, including but not limited to being deprived of
the value of the benefits and services the fees were intended to cover.
132. As a direct and proximate result of Defendants' breach, Plaintiff and the Meals
Class are legally and equitably entitled to damages, to be decided by the trier of fact in
this action, to include but not be limited to disgorgement of the pro-rata amount of fees
that was collected but for which meals and services were not provided.
133. Plaintiff incorporates by reference all preceding allegations as though fully set
forth herein.
134. Plaintiff brings this count on behalf of herself and other members of the Meals
Class.
135. The University has received a benefit at the expense of Plaintiff and other
136. Plaintiff and other members of the Meals Class paid fees for access to on-campus
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138. Plaintiff and other members of the Meals Class did not confer this benefit
gratuitously.
140. Defendants have retained this benefit, even though Defendants have failed to
provide the meals and services for which the fees were collected, making Defendants'
141. Equity requires that the University return a pro-rata portion of the monies paid in
WHEREFORE, Plaintiff, individually and on behalf of members of the Classes, pray for
b. Declaring that Defendants are financially responsible for notifying the Class
c. Declaring that Defendants have wrongfully kept monies paid for tuition, fees, on-
d. Requiring that Defendants disgorge amounts wrongfully obtained for tuition, fees,
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by law;
h. Awarding pre and post judgment interest on any amounts awarded, as permitted
by law; and
i. Awarding such other and further relief as may be just and proper.
Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Plaintiff demands trial by
Respectfully Submitted,
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