Phillips v. DePaul University

2014 IL App (1st) 122817, 19 N.E.3d 1019
Appellate Court of Illinois·Decided September 26, 2014·No. 1-12-2817·Unpublished·Cited by 31 cases

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

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.

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

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.

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

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