Miller v. Grand Canyon University Inc

CourtDistrict Court, N.D. Texas
DecidedMay 19, 2021
Docket4:20-cv-00652
StatusUnknown

This text of Miller v. Grand Canyon University Inc (Miller v. Grand Canyon University Inc) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Grand Canyon University Inc, (N.D. Tex. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS FORT WORTH DIVISION

CHRISTIANE MILLER, and on § behalf of herself and all others § similarly situated, § § Plaintiff, § § v. § Civil Action No. 4:20-cv-00652-P § GRAND CANYON UNIVERSITY, § INC, et al., § § Defendants. § OPINION AND ORDER Plaintiff Christiane Miller (“Miller”) brings this case on behalf of herself and a putative class composed of “[a]ll Grand Canyon University students who have been enrolled in an online professional graduate degree or certificate program that is not accredited in the state where they are employed or, if not employed, where they reside.” Comp. at ¶ 54. Miller submits claims of fraudulent omission, fraudulent misrepresentation, unjust enrichment, violations of the Racketeer Influence and Corrupt Organizations (“RICO”) Act, the Arizona RICO Act, and the Arizona Consumer Fraud Act (“ACFA”) against Defendants Grand Canyon University, Inc. (“GCU”) and Grand Canyon Education, Inc. (“GCE”) (collectively, “Defendants”). Id. at 23–47. To progress, Miller must obtain class certification, a matter the Court considers today in her Motion to Certify. ECF No. 40. Having considered Miller’s Motion to Certify, GCU’s Response (ECF No. 42), Miller’s Reply (ECF No. 46), the record, and applicable law, the Court finds that Miller’s Motion to Certify should be and hereby is DENIED.

BACKGROUND A. Grand Canyon University’s Structure GCU, headquartered in Arizona and incorporated in Delaware, is a primarily online university whose students live throughout the United States. Comp. at ¶ 21. Over half of GCU’s 80,000 online students are working adults seeking masters or doctoral degrees. Id. at ¶ 23. Many of these students must graduate from accredited universities and programs

to enter their chosen field, particularly those interested in education or medicine. Id. There is a distinction to be made between university and programmatic accreditation; for example, a university may be generally accredited while lacking accreditation for one of its post-graduate level programs. Id. at ¶ 24. According to Miller, issues abound within the way GCU operates that leads to it

being unable to acquire accreditation for some of its programs in several states. Id. at ¶ 31. These issues include the following: • GCU professors are often compensated far less than at other universities, often ensuring that their GCU employment is only part- time. As a result of their low pay and the part-time nature of their

employment, GCU professors “are not able to complete the tasks expected of faculty by many accrediting agencies, such as: preparation of proper course outlines and materials; delivering tailored lectures and answering student questions; and assisting students with the material at regularly-scheduled times.” Id. at ¶ 25. • “GCU also does not provide students and faculty with the level of

resources deemed essential by many accrediting agencies. In addition to poor faculty pay, and negligible benefits, training and support does not meet minimum standards. Class materials are also substandard, often amounting to links to Internet-based websites and information. ‘Hands on’ work is impossible or, at the very least, much less of an

emphasis than in most accredited programs.” Id. at ¶ 26. • “Testing and other performance evaluations are not reputable at GCU. Many students complain that grading in courses is random with the main emphasis on keeping students at GCU, even when they do not show knowledge of the coursework.” Id. at ¶ 27.

Like many universities, GCU also makes use of recruiters (called “advisors”) whose job it is to find candidates, discuss GCU’s programs and benefits, and encourage them to apply to GCU. Id. at ¶ 34. Some of these advisors work for GCE, which allows them to receive “incentive compensation to sign up more students” that they would not be permitted to receive if they worked for GCU. Id. at ¶ 39. GCU’s annual report takes the position that

GCE is not a university affiliate—a position Defendants embraced in a hearing before the Court. Id.; ECF No. 36. B. The dispute between Miller and GCU Miller, a Texas citizen, began searching for Texas-accredited online graduate degree programs approximately two years ago. Comp. at ¶¶ 42–43. After completing an online form, a GCE advisor named Nicholas Abruzesse contacted Miller. Id. at ¶ 44. The two engaged in several phone calls where Abruzesse assured Miller that “she could achieve her

goal of becoming a certified teacher if she signed up with GCU” and “informed [her] that GCU’s graduate programs were accredited in Texas.” Id. Miller alleges that, based on Abruzesse’s assurances, she enrolled and began taking courses with GCU. Id. at ¶¶ 48–49. A few months after she began taking courses, Miller alleges that she learned Abruzesse’s representations were false during a conversation with her field experience counselor, Sara. Id. at ¶ 50. When Miller told Sara that she wanted to be licensed in Texas,

Sara told her that “the GCU program that Mr. Abruzesse had enrolled her in could not lead to a job in Texas like she had been assured.” Id. Upset, Miller suspended her pursuit of a degree from GCU and claims that she “would not have enrolled in GCU if she had not been misled about the program.” Id. at ¶¶ 51–52. Defendants contend that she left GCU for a reason entirely unrelated to the program—that GCU expelled her because she failed to

disclose her criminal history as part of an FBI background check required by her education curriculum. Campbell Declr. at ¶ 23, ECF No. 42-1. C. Miller sues and moves for class certification Miller later filed the instant action on behalf of a putative class of “[a]ll Grand Canyon University students who have been enrolled in an online professional graduate

degree or certificate program that is not accredited in the state where they are employed or, if not employed, where they reside.” Id. at ¶ 54. Miller alleges a variety of state and federal common law and statutory fraud and RICO claims. Id. at 23–47. Miller claims that approximately 50,000 GCU students sustained injuries sufficiently similar to hers to be included in the class. Mot. Cert. at 9.

LEGAL STANDARD Class actions are “an exception to the usual rule that litigation is conducted by and on behalf of the individual named parties only.” Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 348 (2011). Federal Rule of Civil Procedure 23 governs whether a proposed class falls

within this limited exception. The party seeking class certification “bear[s] the burden of proof to establish that the proposed class satisfies the requirements of Rule 23.” M.D. ex rel. Stukenberg v. Perry, 675 F.3d 832, 837 (5th Cir. 2012). Here, Miller “must affirmatively demonstrate h[er] compliance with the Rule—that is, [s]he must be prepared to prove that there are in fact sufficiently numerous parties, common questions of law or fact, and so on.” Chavez v. Plan Benefit Servs., Inc., 957 F.3d 542, 545–46 (5th Cir. 2020)

(internal quotations omitted) (emphasis in original). Rule 23 requires the district court to put the Rule’s application through “rigorous analysis.” Id. This means that “Rule 23 does not set forth a mere pleading standard” and often requires the district court “to probe behind the pleadings before coming to rest on the certification question.” Dukes, 564 U.S. at 350–51. The Court cannot take the parties at

their word, but instead must review the evidence and consider the parties’ claims and defenses. Id.

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Miller v. Grand Canyon University Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-grand-canyon-university-inc-txnd-2021.