Cordero v. MT State Uni.

2024 MT 167
Montana Supreme Court·Decided August 6, 2024·No. DA 23-0564·Published

Opinion

08/06/2024

DA 23-0564 Case Number: DA 23-0564

IN THE SUPREME COURT OF THE STATE OF MONTANA 2024 MT 167

ANTHONY CORDERO, on behalf of himself and all others similarly situated,

Plaintiffs and Appellants,

v.

MONTANA STATE UNIVERSITY and WADED CRUZADO,

Defendants and Appellees.

APPEAL FROM: District Court of the First Judicial District, In and For the County of Lewis and Clark, Cause No. BDV-2020-1975 Honorable Michael F. McMahon, Presiding Judge

COUNSEL OF RECORD:

For Appellants:

Adrian A. Miller, Michelle M. Sullivan, Sullivan Miller Law PLLC, Billings, Montana

Michael Tompkins, Anthony Alesandro, Leeds Brown Law, P.C., Carle Place, New York

For Appellees:

Dale R. Cockrell, Eric M. Brooks, Braden S. Murphy, Moore, Cockrell, Goicoechea & Johnson, Kalispell, Montana

Submitted on Briefs: June 5, 2024

Decided: August 6, 2024

Filed:

Vor-64w—if __________________________________________ Clerk Justice Ingrid Gustafson delivered the Opinion of the Court.

¶1 Anthony Cordero (Cordero) was a student at Montana State University (MSU)

during the Spring semester of 2020. Cordero sued MSU, requesting prorated

reimbursement of his tuition and fees, when it transitioned to online learning due to the

COVID-19 pandemic. The First Judicial District Court of Lewis and Clark County

dismissed four of Cordero’s six claims against MSU in its Dismissal Motion Order on

October 26, 2021, and granted summary judgment in favor of MSU on Cordero’s

remaining claims in its Order on Pending Motions on August 22, 2023. Cordero appeals

both Orders. We affirm.

¶2 We restate the issues on appeal as follows:

1. Whether MSU had an express contractual duty to provide in-person and on-campus education and services to Cordero during the spring semester of 2020.

2. Whether the District Court erred when it dismissed Cordero’s implied contract claim under M. R. Civ. P. 12(b)(6).

3. Whether the District Court erred when it dismissed Cordero’s unjust enrichment claim under M. R. Civ. P. 12(b)(6).

FACTUAL AND PROCEDURAL BACKGROUND

¶3 On March 23, 2020, MSU transitioned its campus services and educational

instruction online due to the COVID-19 pandemic. However, MSU kept the majority of

its physical campus open and operational through the remainder of the Spring 2020

semester to offer services to students who required them. The campus fitness center and

fitness domes were temporarily closed, but MSU continued to maintain them. Intramural

activities were stopped for the remainder of the semester, but the practice fields remained

2 open to students. Computer labs remained open. The library was closed to in-person

patrons, but library services remained available online, and students could still arrange to

check out books. The health centers on campus remained open, as did the parking lots. As

a result of these transitions, Cordero filed an amended complaint on February 26, 2021,

against MSU and the university’s President, Waded Cruzado. Cordero asserted six claims:

(1) breach of express contract, (2) breach of implied contract, (3) a due process violation,

(4) unjust enrichment, (5) violation of the takings clause, and (6) inverse condemnation.

¶4 Cordero asserted MSU entered a contract with him through the admission process

whereby MSU promised to provide an on-campus education with in-person instruction,

campus facilities, services, and resources in exchange for his tuition and fee payments.

Cordero claims he did not register or enroll in MSU’s online program, but rather he enrolled

and paid the full price of tuition to attend MSU’s physical campus. Cordero alleges he paid

$19,901 for his Spring 2020 semester, including a student building fee of $22.50, a

non-resident building fee of $15.20, a bus fee of $5.25, an equipment fee of $23.22, an

intramural fee of $23.70, an information technology fee of $46.10, an outdoor recreation

fee of $8.31, a recreational facility fee of $13.38, a student facilities enhancement fee of

$27.90, a student leadership fee of $6.37, a student organization fee of $9.89, a student

press fee of $2.70, and several other fees.

¶5 According to Cordero, his contract with MSU arose from language within MSU’s

course catalogue, student bill of rights, student handbook, acceptance letter, and website.

Cordero claims these documents, combined with representations made during the

application, acceptance, enrollment, and registration processes, defined the terms of their

3 agreement to provide on-campus education in exchange for tuition and mandatory fees.

For example, Cordero points to language in the course catalogue that provides students will

be able to make friends in the residence hall, connect with the community, use the

computers throughout campus, participate in music ensembles, and eat on campus.

¶6 Cordero asserted that MSU breached its contract when it closed its campus and

stopped providing in-person instruction and on-campus facilities while retaining his

tuition. Cordero claimed MSU replaced its in-person program with MSU online without

allowing him to pay the lower price MSU online students pay. Cordero argued he was

entitled to an award of money damages including prorated reimbursement of the tuition,

fees, and other expenses for services and facilities that MSU failed to fully deliver.

¶7 MSU filed a M. R. Civ. P. 12(b)(6) motion to dismiss Cordero’s complaint. The

District Court dismissed Cordero’s claims for breach of implied contract, due process,

takings, and unjust enrichment, but found Cordero’s claims for breach of express contract

and inverse condemnation withstood Rule 12(b)(6) scrutiny.1 MSU then filed a motion for

summary judgement, arguing the alleged express contract between Cordero and MSU did

not exist, and MSU’s actions were pursuant to the State’s power to protect the health and

safety of students and employees. Cordero also filed a motion to certify the case as a class

action for all MSU students impacted by the on-campus closure. The District Court granted

MSU’s summary judgment motion and denied Cordero’s class certification motion. The

1 All claims that initially named MSU President, Waded Cruzado, as a party were dismissed at this stage.

4 court determined Cordero’s breach of express contract claim failed because he did not

identify a specific, bargained-for promise made by MSU. As for Cordero’s inverse

condemnation claim, the court determined Cordero had no compensable property interest

in the tuition and fees he voluntarily paid for his Spring 2020 semester. Cordero appeals

only the District Court’s Order dismissing his implied contract and unjust enrichment

claims under M. R. Civ. P. 12(b)(6) and the court’s Order granting summary judgment in

favor of MSU for the express contract claim.

STANDARD OF REVIEW ¶8 This Court reviews a district court’s ruling on a M. R. Civ. P. 12(b)(6) motion to

dismiss de novo. Marshall v. Safeco Ins. Co., 2018 MT 45, ¶ 6, 390 Mont. 358, 413 P.3d

828. When reviewing an order dismissing a complaint under M. R. Civ. P. 12(b)(6), we

construe the complaint in the light most favorable to the plaintiff. Marshall, ¶ 6. The

district court must not dismiss a complaint for failure to state a claim, “unless it appears

beyond doubt the plaintiff can prove no set of facts in support of his claim that would entitle

him to relief.” Marshall, ¶ 6.

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