Phillips v. DePaul University

2014 IL App (1st) 122817, 19 N.E.3d 1019
CourtAppellate Court of Illinois
DecidedSeptember 26, 2014
Docket1-12-2817
StatusUnpublished
Cited by31 cases

This text of 2014 IL App (1st) 122817 (Phillips v. DePaul University) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips v. DePaul University, 2014 IL App (1st) 122817, 19 N.E.3d 1019 (Ill. Ct. App. 2014).

Opinion

2014 IL App (1st) 122817

SIXTH DIVISION September 26, 2014

No. 1-12-2817

JONATHAN PHILLIPS, BRIAN LOKER, ) Appeal from the ADAM SMESTAD, XAVIER HAILEY, ) Circuit Court of BRENT DAVIDSON, SHELLYE TAYLOR, ) Cook County ALLISON LEARY, JAIME WALSH, ) MADISON MULLADY, on Behalf of ) Themselves and All Others Similarly Situated, ) ) Plaintiffs-Appellants, ) ) v. ) No. 12 CH 003523 ) DEPAUL UNIVERSITY, a/k/a ) DePaul University College ) of Law, and DOES 1-20, ) Honorable ) Neil Cohen, Defendants-Appellees. ) Judge Presiding. ______________________________________________________________________________

JUSTICE ROCHFORD delivered the judgment of the court, with opinion. Justices Hall and Mason concurred in the judgment and opinion.

OPINION

¶1 Plaintiffs, Jonathan Phillips, Brian Loker, Adam Smestad, Xavier Hailey, Brent

Davidson, Shellye Taylor, Allison Leary, Jaime Walsh, and Madison Mullady, graduated from

DePaul University College of Law (DePaul) between 2007 and 2011 and are licensed attorneys,

but they have had difficulty finding full-time, legal employment that pays a high enough salary

so as to allow them to pay off their student loans. On April 6, 2012, plaintiffs filed a first-

amended class action complaint against DePaul on behalf of themselves and all others similarly

situated, alleging that DePaul violated the Consumer Fraud and Deceptive Business Practices

Act (Consumer Fraud Act) (815 ILCS 505/1 et seq. (West 2012)) and committed common-law

fraud and negligent misrepresentation by publishing employment and salary statistics that

deceptively overstated the percentages of recent graduates who had obtained full-time legal No. 1-12-2817

employment with salaries in excess of $70,000. Plaintiffs alleged they relied upon these

employment and salary statistics when deciding to enroll and remain enrolled at DePaul, and that

as a consequence of such reliance, they "paid tens of thousands of dollars for the required tuition,

and in some cases took out tuition loans that will burden them for years." Also as a consequence

of such reliance, they "graduated with a J.D. degree from DePaul with near-term and lifetime job

prospects that are, statistically, less than they would have been had they obtained a degree from a

DePaul with the employment numbers DePaul claimed to have." Plaintiffs sought to recover as

damages a percentage of their tuition payments as well as the additional lifetime income they

would have earned had they obtained the employment and salaries they expected based on the

employment and salary statistics reported by DePaul. DePaul filed a combined motion to

dismiss (735 ILCS 5/2-615, 2-619 (West 2012)), which the circuit court granted with prejudice.

Plaintiffs appeal. 1 We affirm.

¶2 I. Background Facts

¶3 A. Allegations Regarding the Individual Plaintiffs

¶4 In their first-amended class action complaint, the following allegations were made

regarding the individual plaintiffs:

¶5 Jonathan Phillips and Xavier Hailey enrolled in DePaul in August 2007, graduated with

juris doctorate (J.D.) degrees in May 2010, and were admitted to the Illinois bar on November 4,

2010. Brent Davidson enrolled in DePaul in August 2006, graduated with a J.D. degree in May

1 Plaintiffs also alleged violation of the Consumer Fraud Act, common-law fraud and negligent misrepresentation against certain unnamed "Lawyer Defendants" (also referred to as Does 1-20). The circuit court dismissed the counts against the "Lawyer Defendants" pursuant to section 2- 619 of the Code of Civil Procedure, finding it lacked subject matter jurisdiction to consider claims against unknown or fictitious defendants. See Bogseth v. Emanuel, 166 Ill. 2d 507, 513- 14 (1995). Plaintiffs make no argument on appeal regarding the dismissal of their counts against the Lawyer Defendants based on lack of subject matter jurisdiction and, therefore, have waived review thereof. See Fink v. Banks, 2013 IL App (1st) 122177, ¶ 14.

-2- No. 1-12-2817

2009, and was admitted to the Illinois bar in November 2009. Shellye Taylor enrolled in DePaul

in August 2006, graduated with a J.D. degree in May 2010, and was admitted to the Illinois bar

on November 4, 2010. Allison Leary enrolled in DePaul in August 2007, graduated with a J.D.

degree in May 2011, and was admitted to the Illinois bar on November 4, 2011. Adam Smestad

enrolled in DePaul in August 2007, graduated with a J.D. degree in December 2009, and was

admitted to the Illinois bar on November 4, 2010. Jaime Walsh enrolled in DePaul in September

2003, graduated with a J.D. degree in May 2007, and was admitted to the Illinois bar in

November 2007. Madison Mullady enrolled in DePaul in August 2008, graduated with a J.D.

degree in May 2011, and was admitted to the Illinois bar in November 2011. Brian Loker

enrolled in DePaul in August 2007, graduated with a J.D. degree in December 2009, and was

admitted to the California bar in June 2010.

¶6 Plaintiffs alleged each of them took out student loans ranging from $77,000 to more than

$300,000 to pay for the cost of attending DePaul. Upon graduation, none of them have found

full-time, legal work that pays a salary sufficient to service their student loan debts. The only

salary actually pleaded was for Jaime Walsh, who makes $40,000 per year.

¶7 B. Allegations Regarding DePaul

¶8 In their first-amended class action complaint, plaintiffs alleged that DePaul is a law

school accredited by the American Bar Association (ABA). Section 509(a) of the ABA's

Standards for Approval of Law Schools provides that an accredited law school must "publish

basic consumer information" in a "fair and accurate manner reflective of actual practice."

Pursuant thereto, DePaul annually publishes "Employment Information" on its website and in

other marketing materials (e.g. in a Viewbook and Student Report) purporting to set forth the

employment and salary history of the previous year's graduates within the first nine months after

-3- No. 1-12-2817

graduation. The employment information is based on surveys sent to the recent law school

graduates.

¶9 Plaintiffs alleged that in 2006, DePaul published employment information stating that

98% of its graduates in the class of 2005 were employed within nine months of graduation, with

57% working in private practice, 21% working in business, 12% working in government, 4%

working in public interest, 3% working as judicial clerks, and 2% working in academia. The

mean starting salary was stated to be $82,890 for those in private practice and $72,637 for those

in business.

¶ 10 Plaintiffs alleged that in 2008, DePaul published employment information stating that

95% of its graduates in the class of 2007 were employed within nine months of graduation, with

62% working in private practice, 19% working in business, 12% working in government, 4%

working in the public interest, 1% working as judicial clerks, and 2% working in academia. The

mean starting salary was stated to be $82,890.00 for those in private practice and $72,637.00 for

those in business.

¶ 11 Plaintiffs alleged that in 2010, DePaul published employment information stating that

93% of its graduates in the class of 2009 were employed within nine months of graduation, with

50% working in private practice, 26% working in business, 12% working in government, 4.4%

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