`Case 2:20-cv-02086-TJS Document 1 Filed 04/30/20 Page 1 of 17
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`IN THE UNITED STATES DISTRICT COURT
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`FOR THE EASTERN DISTRICT OF PENNSYLVANIA
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`CASE No. 2:20-cv—2086
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`COMPLAINT — CLASS ACTION
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`ASHA SMITH, individually and on
`behalf of all others similarly situated,
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`Plaintiff,
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`v.
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`UNIVERSITY OF
`PENNSYLVANIA,
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`Defendant.
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`COMPLAINT — CLASS ACTION
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`Plaintiff Asha Smith (“Plaintiff”) by and through undersigned counsel, brings this action
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`against University of Pennsylvania (“Defendant” or the “University”) on behalf of herself and all
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`others similarly situated, and makes the following allegations based upon information, attorney
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`investigation and belief, and upon Plaintiff’ s own knowledge:
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`PRELIMINARY STATEMENT
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`1. Plaintiff brings this case as a result of Defendant's decision to close campus,
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`constructively evict students, and transition all classes to an online/remote format as a
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`result of the Novel Coronavirus Disease (“COVID-19”).
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`2. While closing campus and transitioning to online classes was the right thing for
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`Defendant to do, this decision deprived Plaintiff and the other members of the Classes
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`from recognizing the benefits of in-person instruction, access to campus facilities, student
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`activities, and other benefits and services in exchange for which they had already paid
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`fees and tuition.
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`Case 2:20-cv-02086-TJS Document 1 Filed 04/30/20 Page 2 of 17
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`La) Defendant has either refused to provide reimbursement for the tuition, fees, and other
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`costs that Defendant is no longer providing, or has provided inadequate and/or arbitrary
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`reimbursement that does not fully compensate Plaintiff and members of the Class for
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`their loss.
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`4. This action seeks refunds of the amount Plaintiff and other members of the Class are
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`owed on a pro-rata basis, together with other damages as pled herein.
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`PARTIES
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`5. Defendant University of Pennsylvania is an institution of higher learning located in
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`Philadelphia, Pennsylvania.
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`6. Upon information and belief, Defendant has an estimated endowment of approximately
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`$14.7 Billion.l
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`7. Moreover, upon information and belief, Defendant is eligible to receive federal stimulus
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`under the CARES Act. The Act directs that approximately 14 billion dollars be
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`distributed to colleges and universities based upon enrollment and requires that
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`institutions must use at least half of the funds they receive to provide emergency financial
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`aid grants to students for expenses related to the disruption of campus operations due to
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`COVID-l9.
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`8. However, Defendant has refused to apply for CARES Act assistance, announcing that it
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`is financially capable of meeting student needs without such funding:2
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`1 http://www.investmentsupenn.edu/about-us
`2 httpszllpenntoday.upenn.edu/announcements/penn-will-not-appIy-cares-act-funding
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`2
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`Case 2:20-cv-02086-TJS Document 1 Filed 04/30/20 Page 3 of 17
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`The CARES Act, which was recently passed by Congress, allows
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`universities to apply for emergency relief funds to offset the impacts of
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`the COVID-lg pandemic. Despite the serious financial impact to Penn
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`as a result of the pandemic, after analyzing the full scope of the
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`regulations involved, Penn has determined that it will not apply for nor
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`accept the funds that would be available through the CARES Act.
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`Although Penn is declining to apply for these particular federal funds,
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`our commitment to providing financial aid and support to students in
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`need is unwavering, and we will continue to do all that we can to ensure
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`the educational success of all Penn students.
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`10.
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`11.
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`12.
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`13.
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`14.
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`15.
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`Plaintiff is an individual and a resident and citizen of the state of Pennsylvania.
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`Plaintiff is currently enrolled as a full time student at the University for its Spring
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`Semester.
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`Plaintiff has paid substantial tuition for the Spring 2020 semester either out of pocket or
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`by utilizing student loan financing, or otherwise.
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`There are hundreds, if not thousands, of institutions of higher learning in this country.
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`Some institutions of higher learning provide curriculum and instruction that is offered on
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`a remote basis through online programming which do not provide for physical attendance
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`by the students.
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`Defendant's institution offers in person, hands on curriculum.
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`Plaintiff and members of the Proposed Tuition Class did not choose to attend another
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`institution of higher learning, or to seek an online degree, but instead chose to attend
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`Defendant's institution and enroll on an in—person basis.
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`16.
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`Common sense would dictate that the level and quality of instruction an educator can
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`provide through an online format is lower than the level and quality of instruction that
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`can be provided in person.
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`Lo.)
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`17. Moreover, the true college experience encompasses much more than just the credit hours
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`and degrees. The college experience consists of:
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`i.
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`Face to face interaction with professors, mentors, and peers;
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`ii.
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`Access to facilities such as computer labs, study rooms, laboratories, libraries, etc;
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`iii.
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`Student governance and student unions;
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`iv.
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`Extra-curricular activities, groups, intramurals, etc;
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`v.
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`Student art, cultures, and other activities;
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`vi.
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`Social development and independence;
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`vii.
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`Hands on learning and experimentation; and
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`viii.
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`Networking and mentorship opportunities.
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`18. Plaintiff's education has changed from in-person hands on learning to online instruction.
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`19. Plaintiff‘s online instruction is not commensurate with the same classes being taught in
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`person.
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`20. For example, upon information and belief, not all of the University’s classes are being
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`taught in a live setting Via online streaming. Rather, some professors are uploading pre-
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`recorded lectures where students have no opportunity for interaction; and still other
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`professors are simply uploading reading and other assignments with no video lectures at
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`all.
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`21. In addition to tuition, Plaintiff was required to pay certain mandatory fees, including but
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`not limited to a substantial “general fee” and a clinical fee.
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`22. As a result of most on-campus operations being reduced or eliminated, Plaintiff no longer
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`has the benefit of the services for which these fees have been paid.
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`23. For example, Defendant describes the general fee as supporting “a variety of student
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`24.
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`25.
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`related activities, services, and spaces.”3
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`However, a majority of these activities and services have been cancelled, and most on-
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`campus spaces have been closed.
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`By way of example, while not an exhaustive list, the following campus services have
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`been closed: Hospitality Services; Morris Arboretum; Off-Campus Services; Penn
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`Bookstore; Penn Children’s Center; University Ice Rink; all on campus libraries; all
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`student activities; student centers, and generally all other activities, services, and spaces
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`not considered “life sustaining” to the University.4
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`26.
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`As a result of students being encouraged to return home and avoid campus, Student
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`Health Services has reported fewer than five in-person visits per day.5
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`JURISDICTION AND VENUE
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`27.
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`This Court has jurisdiction over this action pursuant to the Class Action Fairness Act
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`(“CAFA”), 28 U.S.C. § 1332(d), because at least one class member is of diverse
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`citizenship from one Defendant, there are more than 100 Class members, and the
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`aggregate amount in controversy exceeds $5 million, exclusive of interest and costs.
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`28.
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`This Court has jurisdiction over this action pursuant to the Class Action Fairness Act
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`(“CAFA”), 28 U.S.C. § 1332(d), because at least one class member is of diverse
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`citizenship from one Defendant, there are more than 100 Class members, and the
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`aggregate amount in controversy exceeds $5 million, exclusive of interest and costs.
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`29.
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`This Court has personal jurisdiction over Defendant because Defendant is domiciled in
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`3 https://srfs.upenn.edu/costs-budgeting/undergraduate-tuition-and-fees
`4 See, eg, https://coronavirus.upenn.edu/students-families/student-faq ; https://coronavirus.upenn.edu/faculty-
`staff/march l 5-message-from-libraries ; https://coronavirus.upenn.edu/content/march-20-2020-message-penn-
`faculty-and-staff—regarding-university-operations.
`5 https://www.thedp.com/articlez’2020/04/coronavirus-campus-health-counseling-psychological-caps-services
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`5
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`Case 2:20-cv-02086-TJS Document 1 Filed 04/30/20 Page 6 of 17
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`Pennsylvania and conducts business in Pennsylvania.
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`30.
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`Venue is proper in this District under 28 U.S.C. § 1391(b) because a substantial part of
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`the events or omissions giving rise to the claims occurred in this District, and because
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`Defendant is an institution domiciled and doing business in this district.
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`FACTUAL ALLEGATIONS
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`31.
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`32.
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`33.
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`34.
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`Upon information and belief, Defendant’s Spring term began with the first day of classes
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`on or about January 15, 2020.6
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`Upon information and belief, Defendant’s Spring term was scheduled to conclude with
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`the last day of examinations on or about May 12, 2020 and commencement ceremonies
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`on May 18, 2020.7
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`Accordingly, Defendant’s Spring semester was scheduled and contracted to consist of
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`approximately 119 days.
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`As a result of the COVID-19 pandemic, Defendant announced that it was moving all
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`classes online for the remainder of the semester, starting on or about March 23, 2020.
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`Defendant asked all students living on campus to vacate their dormitories by March 17,
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`2020.8
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`35.
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`Almost immediately, students began demanding refunds for the fees and charges
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`demanded in this action.
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`36.
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`As early as March 24, the students at Defendant's institution started a changeorg petition,
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`which, at the current time, has over 1300 signatures.9
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`" https://almanac.upenn.edu/penn-academic-calendar
`7 Li-
`.
`_
`“ https://coronavirus.upenn.edu/students/email-march-15
`9 https://www.change.org/p/amy-gutmann-upenn-petition-to-reduce-forgive-rebate-spring—2020-tumon-due-to-
`covid-19
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`Case 2:20-cv-02086-TJS Document 1 Filed 04/30/20 Page 7 of 17
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`37. Many of these students have detailed how the school’s actions have personally affected
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`them:
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`" ‘71tfii‘. 5’:
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`.1133
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`Online classes is totally a different experience compared with face-to-tace classes. There are many
`troubles which would negatively impact the learning efficiencyi it should not be as expensive as
`classroom courses.
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`1:) 0
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`«- emf-x > {Mr}
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`89m
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`Leaving asrde all kinds of indirect loss of opportunities, a lab course that i chose for some hand-on
`experience became a course that plays videos.
`i do fully understand and support the decision to shut down campus in a state of emergency. but it is
`also true that we will not receive the education we paid for. i believe that a partial refund is completely
`reasonable and responsible.
`a/
`I
`1“?
`‘-
`
`Saw
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`' m? if it >. 55:70
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`We have paid for facilities that we haven’t utilized and that is not fair.
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`0
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`$995
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`The education of Design school heavily relies on facilities. Since we don't have access to that now, I
`think we should get tuition reduce.
`\,/
`
`0
`
`
`Firm-'1
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`‘:i:nr‘:‘\ aux;
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`Considering that i cannot use the school’s library . gym, or any other facilities anymore, I do believe the
`rebate is fair.
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`{‘20
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`8.699.!
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`38. Although Defendant is still offering some level of academic instruction Via online
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`classes, Plaintiffs and members of the proposed Tuition Class have been and will be
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`deprived of the benefits of on campus learning as set forth more fully above.
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`39. Moreover, the value of any degree issued on the basis of online or pass/fail classes will
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`be diminished for the rest of their lives.
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`40. However, Defendant has refused and continues to refuse to offer any pro-rated tuition
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`discounts or refunds for the Spring Semester.
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`41. Moreover, Plaintiffs and members of the proposed Class have been and will be deprived
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`of utilizing services for which they have already paid, such as access to campus facilities,
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`and other opportunities.
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`42. The University’s President admitted in a message to students on March 17, 2020 that
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`Defendant is no longer providing many of the services for which Plaintiff and the
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`members of the Class contracted. The University also acknowledged that its students
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`have suffered losses as a result:10
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`March 17, 2020 A Personal Message from Amy Gutmann
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`- To each and every one of our students Penn undergraduate. graduate,
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`orofesssonai, and nontraditional students ,
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`l Know you are deeply concerned and
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`ancertain abom what comes next. and I share those feelings wan you. You have
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`goals and dreams left undone, plays not oeéng performed, games and meets not
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`taking place. research :ntermnted, spontaneous latenlgnt conversatéons not
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`ocrumng, and a thousand other losses borh large and small that we at: mourn, It
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`nnrts to have so much changed so quickly.
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`43. However, Defendant has failed and continues to fail to do the right thing and issue
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`appropriate refunds, as required by law and equity.
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`CLASS ACTION ALLEGATION
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`44. Plaintiff brings this action on behalf of herself and as a class action, pursuant to the
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`provisions of Rule 23 of the Federal Rules of Civil Procedure on behalf of the following
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`‘0 https://coronavirus.upenn.edu/content/march—17-personal-message-amy-gutmann
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`l
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`Classes:
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`The Tuition Class:
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`All people who paid tuition for or on behalf of students enrolled in classes at the
`University for the Spring 2020 semester who paid for but were denied live in-
`person instruction and forced to use online distance learning platforms for the
`latter portion of that semester.
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`The Fees Class:
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`All people who paid fees for or on behalf of students enrolled in classes at the
`University for the Spring 2020 semester.
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`45. Excluded from the Classes are The Board of Trustees of Pennsylvania University (or
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`other similar governing body) and any of their respective members, affiliates, parents,
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`subsidiaries, officers, directors, employees, successors, or assigns; and the judicial
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`officers, and their immediate family members, and Court staff assigned to this case.
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`Plaintiffs reserve the right to modify or amend the Class definitions, as appropriate,
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`during the course of this litigation.
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`46. Certification of Plaintiff 5 claims for class-wide treatment is appropriate because Plaintiff
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`can prove the elements of her claims on a class-wide basis using the same evidence as
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`would be used to prove those elements in individual actions alleging the same claims.
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`47. This action has been brought and may be properly maintained on behalf of the Class
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`proposed herein under Federal Rule of Civil Procedure 23.
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`Numerosi
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`2 Fed. R. Civ. P. 23 a 1
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`48. The members of the Class are so numerous and geographically dispersed that individual
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`joinder of all Class members is impracticable. Plaintiff is informed and believes there are
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`thousands of members of the Class, the precise number being unknown to Plaintiff, but
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`such number being ascertainable from Defendant's records. Upon information and belief,
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`Defendant’s current enrollment is approximately 24,000 students. Class members may be
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`notified of the pendency of this action by recognized, Court-approved notice
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`dissemination methods, which may include US. mail, electronic mail, intemet postings,
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`and/or published notice.
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`Commonalig and Predominance: Fed. R. Civ. P. 231a1121
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`49. This action involves common questions of law and fact, which predominate over any
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`questions affecting individual Class members, including, without limitation:
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`ix. Whether Defendant engaged in the conduct alleged herein;
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`x. Whether there is a difference in value between online distance learning and live
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`in—person instruction;
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`xi. Whether Defendant breached its contracts with Plaintiff and the other members of
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`the Tuition Class by retaining the portion of their tuition representing the
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`difference between the value of online distance learning and live in-person
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`instruction;
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`xii. Whether Defendant was unjustly enriched by retaining tuition payments of
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`Plaintiff and the Tuition Class representing the difference between the value of
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`online distance learning and live in-person instruction;
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`xiii. Whether Defendant breached its contracts with Plaintiff and the other members of
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`the Fees Class by retaining fees without providing the services the fees were
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`intended to cover;
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`xiv. Whether Defendant was unjustly enriched by retaining fees of Plaintiff and the
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`other members of the Fees Class without providing the services the fees were
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`10
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`intended to cover;
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`xv. Whether certification of any or all of the classes proposed herein is appropriate
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`under Fed. R. Civ. P. 23;
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`xvi. Whether Class members are entitled to declaratory, equitable, or injunctive relief,
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`and/or other relief; and
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`xvii.
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`The amount and nature of relief to be awarded to Plaintiff and the other Class
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`members.
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`Typicality: Fed. R. Civ. P. 23§an31
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`50.
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`Plaintiff’s claim is typical of the other Class member’s claims because, among other
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`things, all Class members were similarly situated and were comparably injured through
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`Defendant‘s wrongful conduct as set forth herein.
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`Adeguacy: Fed. R. Civ. P. 231a)“;
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`51.
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`Plaintiff is an adequate Class representative because her interests do not conflict with the
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`interests of other members of the Class she seeks to represent. Plaintiff has retained
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`counsel competent and experienced in complex litigation; and Plaintiff intends to
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`prosecute the action vigorously. The Class’s interests will be fairly and adequately
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`protected by Plaintiff and her counsel.
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`Su eriori
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`: Fed. R. Civ. P. 23 b 3
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`52.
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`A class action is superior to any other available means for the fair and efficient
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`adjudication of this controversy, and no unusual difficulties are likely to be encountered
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`in the management of this class action. The damages or other financial detriment
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`suffered by Plaintiff and other Class members are relatively small compared to the
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`burden and expense that would be required to individually litigate their claims against
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`11
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`Defendant, so it would be impracticable for members of the Class to individually seek
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`redress for Defendant's wrongful conduct.
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`53.
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`Even if Class members could afford individual litigation, the Court system likely could
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`not. Individualized litigation creates a potential for inconsistent or contradictory
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`judgments, and increases the delay and expense to all parties and the court system. By
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`contrast, the class action device presents far fewer management difficulties and provides
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`the benefits of single adjudication, economy of scale, comprehensive supervision by a
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`single court, and finality of the litigation.
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`Certification of S ecific Issues: Fed. R. Civ. P. 23 c 4
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`. To the extent that a Class does not meet the requirements of Rules 23(b)(2) or (b)(3),
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`Plaintiff seeks the certification of issues that will drive the litigation toward resolution.
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`Declaratory and lniunctive Relief: Fed. R. Civ. P. 23gb1121
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`55.
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`The University has acted or refused to act on grounds generally applicable to Plaintiff and
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`the other Class members, thereby making appropriate final injunctive relief and
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`declaratory relief, as described herein, with respect to the Class members as a whole.
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`FOR A FIRST COLLECTIVE CAUSE OF ACTION
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`BREACH OF CONTRACT
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`(Plaintiff and Other Members of the Tuition Class)
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`56.
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`Plaintiff incorporates by reference all preceding allegations as though fully set forth
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`herein.
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`57.
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`Plaintiff brings this count on behalf of herself and other members of the Tuition Class.
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`58.
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`Plaintiff and the Tuition Class entered into contracts with the University which provided
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`that Plaintiff and other members of the Tuition Class would pay tuition for or on behalf of
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`students and, in exchange, the University would provide live in—person instruction in a
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`12
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`physical classroom.
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`59.
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`Plaintiff and other members of the Tuition Class fulfilled their end of the bargain when
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`they paid tuition for the Spring 2020 semester either out-of-pocket or by using student
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`loan financing, or otherwise.
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`60.
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`The University breached the contract with Plaintiff and the Tuition Class by moving all
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`classes for the Spring 2020 semester to online distance learning platforms, without
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`reducing or refunding tuition accordingly.
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`61.
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`62.
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`The University retained tuition monies paid by Plaintiff and other members of the Tuition
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`Class, without providing them the full benefit of their bargain.
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`Plaintiff and other members of the Tuition Class have suffered damage as a direct and
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`proximate result of Defendant's breach, including but not limited to being deprived of the
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`value of the services the tuition was intended to cover. namely live in-person instruction
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`in a physical classroom.
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`. As a direct and proximate result of Defendant's breach, Plaintiff and the Tuition Class are
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`legally and equitably entitled to damages, to be decided by the trier of fact in this action,
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`to include but not be limited to disgorgement of the difference between the value of the
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`online learning which is being provided versus the value of the live in-person instruction
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`in a physical classroom that was contracted for.
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`FOR A SECOND COLLECTIVE CAUSE OF ACTION
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`UNJUST ENRICHMENT
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`(Plaintiff and Other Members of the Tuition Class)
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`64.
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`Plaintiff incorporates by reference all preceding allegations as though fully set forth
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`herein.
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`65.
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`Plaintiff brings this count on behalf of herself and other members of the Tuition Class.
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`13
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`66.
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`The University has received a benefit at the expense of Plaintiff and other members of the
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`Tuition Class to which it is not entitled.
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`67.
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`Plaintiff and other members of the Tuition Class paid substantial tuition for live in-person
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`instruction in physical classrooms and did not receive the full benefit of the bargain.
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`68.
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`Plaintiff and other members of the Tuition Class conferred this benefit on Defendant
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`69.
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`70.
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`71.
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`72.
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`73.
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`74.
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`75.
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`when they paid the tuition.
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`Defendant has realized this benefit by accepting such payment.
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`Defendant has retained this benefit, even though Defendant has failed to provide the
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`services for which the tuition was collected, making Defendant's retention unjust under
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`the circumstances.
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`Equity and good conscience requires that the University return a portion of the monies
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`paid in tuition to Plaintiff and other members of the Tuition Class.
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`Defendant should be required to disgorge this unjust enrichment.
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`FOR A THIRD COLLECTIVE CAUSE OF ACTION
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`BREACH OF CONTRACT
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`(Plaintiff and Other Members of the Fees Class)
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`Plaintiff incorporates by reference all preceding allegations as though fully set forth
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`herein.
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`Plaintiff brings this count on behalf of herself and other members of the Fees Class.
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`Plaintiff and the Fees Class entered into contracts with the University which provided
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`that Plaintiff and other members of the Fees Class would pay certain fees for or on behalf
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`of students and, in exchange, the University would provide services related to those fees,
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`such as access to student activities, athletics, wellness centers, libraries, etc.
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`76.
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`Plaintiff and other members of the Fees Class fulfilled their end of the bargain when they
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`14
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`paid these fees for the Spring 2020 semester either out-of-pocket or by using student loan
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`financing, or otherwise.
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`The University breached the contract with Plaintiff and the Fees Class by moving all
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`classes for the Spring 2020 semester to online distance learning platforms, constructively
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`evicting students from campus, and closing most campus buildings and facilities.
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`The University retained fees paid by Plaintiff and other members of the Fees Class,
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`without providing them the full benefit of their bargain.
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`Plaintiff and other members of the Fees Class have suffered damage as a direct and
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`proximate result of Defendant's breach, including but not limited to being deprived of the
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`value of the benefits and services the fees were intended to cover.
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`As a direct and proximate result of Defendant's breach, Plaintiff and the Fees Class are
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`legally and equitably entitled to damages, to be decided by the trier of fact in this action,
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`to include but not be limited to disgorgement of the pro-rata amount of fees that was
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`collected but for which services were not provided.
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`FOR A FOURTH COLLECTIVE CAUSE OF ACTION
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`UNJUST ENRICHMENT
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`(Plaintiff and Other Members of the Fees Class)
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`Plaintiff incorporates by reference all preceding allegations as though fully set forth
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`herein.
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`Plaintiff brings this count on behalf of herself and other members of the Fees Class.
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`The University has received a benefit at the expense of Plaintiff and other members of the
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`Fees Class to which it is not entitled.
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`77.
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`78.
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`79.
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`80.
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`81.
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`82.
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`83.
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`84.
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`Plaintiff and other members of the Fees Class paid substantial student fees for on campus
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`benefits and services and did not receive the full benefit of the bargain.
`
`15
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`
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`Case 2:20-cv-02086-TJS Document 1 Filed 04/30/20 Page 16 of 17
`Case 2:20-cv-02086-TJS Document 1 Filed 04/30/20 Page 16 of 17
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`85. Plaintiff and other members of the Fees Class conferred this benefit on Defendant when
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`they paid the fees.
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`86. Defendant has realized this benefit by accepting such payment.
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`87. Defendant has retained this benefit, even though Defendant has failed to provide the
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`services for which the fees were collected, making Defendant's retention unjust under the
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`circumstances.
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`88. Equity and good conscience requires that the University return a pro-rata portion of the
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`monies paid in fees to Plaintiff and other members of the Fees Class.
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`89. Defendant should be required to disgorge this unjust enrichment.
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`PRAYER FOR RELIEF
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`WHEREFORE, Plaintiff, individually and on behalf of members of the Class(es), pray for
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`judgment in their favor and against Defendant as follows:
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`a.
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`Certifying the Classes as proposed herein, designating Plaintiff as Class
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`representative, and appointing undersigned counsel as Class Counsel;
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`b.
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`Declaring that Defendant is financially responsible for notifying the Class
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`members of the pendency of this action;
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`Declaring that Defendant has wrongfully kept monies paid for tuition and fees;
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`Requiring that Defendant disgorge amounts wrongfully obtained for tuition and
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`0.
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`d.
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`fees;
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`e.
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`Awarding injunctive relief as permitted by law or equity, including enjoining
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`Defendant from retaining the pro-rated, unused monies paid for tuition and fees;
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`f.
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`g.
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`Scheduling a trial by jury in this action;
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`Awarding Plaintiff 5 reasonable attorney’s fees, costs and expenses, as permitted
`
`l6
`
`
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`Case 2:20-cv-02086-TJS Document 1 Filed 04/30/20 Page 17 of 17
`Case 2:20-cv-02086-TJS Document 1 Filed 04/30/20 Page 17 of 17
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`by law;
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`h.
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`Awarding pre and post judgment interest on any amounts awarded, as permitted
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`by law; and
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`i.
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`Awarding such other and further relief as may be just and proper.
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`DEMAND FOR JURY TRIAL
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`Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Plaintiff demands trial by
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`jury in this action of all issues so triable.
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`This 301h day of April, 2020
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`Respectfully Submitted,
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`CARPEY LAW, P.C.
`
`/s/ Stuart A. Cmey
`Stuart A. Carpey, #49490
`600 W. Germantown Pike, Suite 400
`
`Plymouth Meeting, PA 19462
`(610)834-6030
`scarpey@carpeylaw.com
`
`ANASTOPOULO LAW FIRM, LLC
`
`Eric M. Poulin (pro hac vice admission pending)
`Roy T. Willey, IV (pro hac vice admission pending)
`32 Ann Street
`
`Charleston, SC 29403
`
`(843) 614-8888
`eric@akimlawfirm.com
`roy@akimlawfirm.com
`
`ATTORNEYS FOR PLAINTIFF(S)
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`17
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`