Melvin Murphy v. Capella Education Company

589 F. App'x 646
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 5, 2014
Docket13-2265
StatusUnpublished
Cited by16 cases

This text of 589 F. App'x 646 (Melvin Murphy v. Capella Education Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melvin Murphy v. Capella Education Company, 589 F. App'x 646 (4th Cir. 2014).

Opinion

*648 Affirmed by unpublished PER CURIAM opinion. Judge Wynn wrote a separate opinion concurring in the result.

Unpublished opinions are not binding precedent in this circuit.

PER CURIAM:

Melvin Murphy (“Appellant”) appeals the district court’s dismissal of his amended complaint (the “Amended Complaint”), which purports to bring fraud-based claims against Appellee Capella Education Co. (“Capella”). The district court dismissed the Amended Complaint pursuant to Rule 9(b) of the Federal Rules of Civil Procedure because Appellant failed to allege fraud with sufficient particularity.

The Amended Complaint alleges that Appellant paid large sums of tuition in pursuit of a Ph.D., only to fail the comprehensive examinations, which was a required step on the path to earning a Ph.D. He does not allege with particularity that anyone at Capella assured him he would pass such examinations, that he would complete the program in a certain period of time, or that statements in the published materials sent by Capella made any such representations. He also alleges that an unspecified number of nameless individuals shared the same experience, and thus Capella is essentially a “diploma mill without the diplomas.” J.A. 103 (internal quotation marks and punctuation omitted). 1 Such allegations must meet the heightened pleading standard set forth in the Federal Rules. Because Appellant fails to meet this standard, we affirm.

I.

The Amended Complaint, which we are obliged to view in the light most favorable to Appellant, see Anand v. Ocwen Loan Servicing, LLC, 754 F.3d 195, 198 (4th Cir.2014), contains the following allegations.

A.

Murphy, a resident of Fairfax County, Virginia, received a bachelor’s degree from American University and an M.B.A. from the University of Phoenix. He then sought to obtain a Ph.D. for purposes of his professional development in the business management field. Having seen several online advertisements for Capella’s doctoral programs in business management, Appellant contacted Capella and expressed an interest. Capella “aggressively responded” to Appellant, “calling and emailing him and providing him with brochures and other marketing materials in an effort to enroll him in its doctoral program.” J.A. 104.

In response to his inquiries, Capella sent two publications to Appellant: the 2008 University Guide (the “Guide”) and the “What Can I Do?” Brochure (the “Brochure”). The Guide is a 40-page color booklet that, inter alia, describes the Ph.D. program in Organization and Management with a specialization in Leadership (the “Leadership Ph.D.”). The Guide includes the following description of the Leadership Ph.D. program:

Enhance your ability to manage and lead in today’s fast-paced, global business environment with the Leadership PhD specialization. The curriculum offers a strong foundation in key business functions, along with focused leadership courses that allow you to carve your niche in such areas as global leadership, leadership development, entrepreneurial leadership, and upper-echelon leadership. You will also conduct and apply advanced doctoral research to the actual challenges facing complex, 21st-century *649 organizations. People who choose this specialization are often pursuing faculty positions or leadership or consulting roles in a variety of military, government, business, and nonprofit settings.

J.A. 176. The Guide also contains testimonials and photographs of individuals purporting'to be Capella students. One of these purported students is Sidney Wynn, who, like Appellant, is an African-American veteran. The Guide indicates that Wynn earned a master’s degree and was enrolled in the Organization and Management Ph.D. program at Capella. The statement below his picture reads, “I chose the Capella master’s degree program as a way to move myself forward and provide an edge when I return to civilian life.” Id. at 164.

The Brochure is a four-page brochure stating the following:

The Leadership specialization prepares leaders for today’s fast-paced and complex global enterprise system.... Executives, mid-level managers, and those in the initial stages of their careers are prepared to develop real-world answers to the challenges of the twenty-first century organization. This specialization prepares doctoral leaders to lead, consult, or teach in the area of leadership from an informed, strategic viewpoint, creating practical solutions to real-world problems.

J.A. 199. The Brochure also lists “[c]om-mon job titles” for graduates of thé Leadership Ph.D. program, including faculty member, dean, leadership consultant, CEO, CFO, president, and director. Id.

In addition to the Guide and the Brochure, Capella enrollment counselors also confirmed to Appellant that the Leadership Ph.D. existed, that he “would earn that degree once he had fulfilled the requisite coursework,” and that “the degree would be useful in his chosen profession.” J.A. 108-09.

B.

Based on the representations made in the Guide, in the Brochure, and by enrollment counselors, Appellant applied to Capella’s Leadership Ph.D. program in late 2008 and enrolled in the program in 2009. From 2009 to 2011, he performed well and was very involved in school activities. He communicated with his advisor and took classes on a quarterly basis. He attended three residency programs or “colloquia,” where he met other Capella students. J.A. 110. Throughout the program, Appellant was “in regular contact” with his ad-visors about progress, course selection, and difficulties with his studies. Id. Appellant estimates he emailed and called such advisors twice a month. Appellant earned a GPA of 3.75, along with a $5,000 scholarship to apply toward his tuition. He was even selected as a “Capella Ambassador,” and in that capacity he discussed the school’s academic offerings with new and potential students. Id.

After finishing his course work, in the fall of 2011, Appellant took the comprehensive examinations, or “Comps,” which is the last step before a Capella Ph.D. student begins to write his or her dissertation. According to the Amended Complaint, the Comps are “purportedly ... written exam[s] which feature [ ] multiple essay questions in which the doctoral candidate demonstrates knowledge of the subject matter, as well as writing, research, and critical thinking proficiency.” J.A. 111. If a student fails the Comps on the first try, he or she may try again, but on the second failed attempt, the student is dis-enrolled. The Comps term is treated as a course, requiring approximately $4,000 in tuition per term. Students are permitted to receive feedback during the *650 process of writing the Comps and, in response, perform a “rewrite,” but this process normally lengthens the Comps process, adding more to the tuition bill. Id. at 112-13.

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