Austin v. Albany Law School of Union University

38 Misc. 3d 988
CourtNew York Supreme Court
DecidedJanuary 3, 2013
StatusPublished
Cited by2 cases

This text of 38 Misc. 3d 988 (Austin v. Albany Law School of Union University) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Austin v. Albany Law School of Union University, 38 Misc. 3d 988 (N.Y. Super. Ct. 2013).

Opinion

OPINION OF THE COURT

Richard M. Platkin, J.

In this action premised on alleged violations of General Business Law §§ 349 and 350, common-law fraud and negligent misrepresentation, defendant Albany Law School of Union University (ALS) moves pursuant to CPLR 3211 (a) (1) and (7) for dismissal of the amended complaint.

Background

In February 2012, three recent graduates of ALS commenced this action on behalf of themselves and others similarly situated. An amended class action complaint (complaint) was filed in May 2012, which added a fourth recent graduate as plaintiff. According to the complaint, Matthew Austin graduated from ALS in 2010 and has practiced law in temporary or contract positions in Monroe County since November 2010 (1i 9). Jordan Haug graduated from ALS in 2011, recently passed the New York State bar examination and secured temporary employment at a law firm in November 2011. Holly Pennington graduated in 2011, worked as a clerk for a law firm until January 2012 and took the bar exam in February 2012. Andrew Dructor, a 2010 graduate who resides in Pennsylvania but is admitted to the New York bar, alleges that he has been unable to obtain permanent, full-time legal employment.

Common to all four plaintiffs are allegations that they

“paid tens of thousands of dollars in tuition and fees to the school while incurring tens of thousands of dollars more in debt. In applying and deciding to remain enrolled at Albany Law, [plaintiffs] relied on salary data and employment information posted on ALS’s website, marketing material and/or disseminated to third-party data clearinghouses and publications, such as the ABA and US News, and specifically relied on ALS’s representations that, depending on the year, approximately 95 percent of its graduates were employed within nine months of graduation. Indeed, prior to [plaintiffs] enrolling in Albany Law, the school represented that about 97 percent of 2006 graduates secured employment within nine months of graduation, and while Mr. [991]*991Haug was enrolled in Albany Law the school posted on its website an employment report asserting that 94 percent of 2008 graduates secured employment within nine months of graduation. Furthermore, [plaintiffs] when applying and deciding to remain enrolled in Albany Law w[ere] unaware that the school’s reported placement rates included temporary and part-time employment and/or employment for which a JD was not required or preferred— employment [plaintiffs] would have been eligible for even without obtaining a JD degree and paying ALS’s tuition. Had [plaintiffs] been aware that ALS’s reported placement rates included temporary and part-time employment and/or employment for which a JD was not required or preferred, [they] would have elected to either pay less to Albany Law or perhaps not attend the school at all” (complaint 1f1T 9-12).

The complaint focuses on graduate employment data published by ALS on its Internet website and in its marketing materials. Plaintiffs allege that ALS currently represents on its website that 91% of the class of 2010 was employed nine months after graduation, with 71% working in positions for which a juris doctor (JD) is required, 19% in positions for which a JD is preferred and 10% in positions that neither require nor prefer a JD (complaint If 21). According to plaintiffs, these figures are based upon “unaudited, unverified and self-reported” data (id.).

Plaintiffs further allege that prior to September 2011, ALS “disclosed even less accurate and more deceptive information regarding [its] graduates’ job prospects, by failing to disclose the percentage of graduates who were in jobs that do not require or prefer a JD degree” (id. If 22).

“For example, for the class of 2009, the school posted employment data which claims that the employment rate was 90 percent, including 45 percent of the class allegedly working in private practice, 20 percent working for ‘corporations,’ 27 percent working in government, five percent in public interest, and five percent in ‘academia.’ For the class of 2008, the school claimed an employment rate of 94 percent, including 49 percent in private practice, 19 percent in ‘business,’ 16 percent in government, six percent in public interest and two percent in academia” (id. [citation omitted]).

[992]*992Additionally, plaintiffs allege that ALS disseminated false or misleading employment information to third parties, including U.S. News & World Report (US News), the American Bar Association (ABA) and the National Association for Law Placement (NALP). The complaint explains that US News and the ABA “simply require law schools to report an overall employment number, and do not require schools to distinguish between part-time and full-time jobs” (11 24). The complaint further articulates that as an accredited law school, ALS is required “by Section 509 (a) of the ABA’s 2010-2011 Standards for Approval of Law Schools . . . [to] ‘publish basic consumer information’ in a ‘fair and accurate manner reflective of actual practice’ ” (id. 1118). According to plaintiffs, ALS and other “law schools would satisfy th[e ABA’s] virtually meaningless and non-existent criterion by reporting jobs that are temporary or part-time or have absolutely nothing to do with obtaining a JD degree as ‘employment’ ” (id.).

In contrast, NALP requires a

“specifict ] break down [of] the exact type of employment their graduates have obtained, differentiating between part-time and full-time jobs or whether a position requires a JD degree. Unfortunately, NALP does not either publish or make available to the public these questionnaires, and instead compiles and tabulates their data into a single document which contains aggregate statistical information from all law schools” (id. 1f 26).

Plaintiffs complain that despite ALS “breaking down its employment data into various disaggregated categories for NALI] the school presented highly misleading [aggregated] data to prospective and current students” (id. 1f 27).

The complaint also alleges that the employment data reported and marketed by ALS is “grossly inflated” due to the inclusion of the following types of employment within the aggregate percentage figure published by the law school: (a) positions for which a JD is not required or preferred; (b) part-time or temporary positions; (c) research assistants and fellows funded by the law school; (d) graduates who were employed within nine months of graduation, but who were not employed on the reporting date of the survey; and (e) graduates who have been “forced” to start solo practices due to their inability to find other employment (complaint H 29). Plaintiffs also complain that “Albany Law . . . calculates and tallies the raw data input[993]*993ted in the job surveys filled out by recent graduates in a shoddy, slipshod manner, cynically choosing to omit or ignore critical statistical data that would substantially lower placement rates” (id.).

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Bluebook (online)
38 Misc. 3d 988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/austin-v-albany-law-school-of-union-university-nysupct-2013.