Phillips v. DePaul University

2014 IL App (1st) 122817
Appellate Court of Illinois·Decided November 26, 2014·No. 1-12-2817·Published·Cited by 20 cases

Opinion

Illinois Official Reports

Appellate Court

Phillips v. DePaul University, 2014 IL App (1st) 122817

Appellate Court JONATHAN PHILLIPS, BRIAN LOKER, ADAM SMESTAD, Caption XAVIER HAILEY, BRENT DAVIDSON, SHELLYE TAYLOR, ALLISON LEARY, JAIMIE WALSH, MADISON MULLADY, on Behalf of Themselves and All Others Similarly Situated, Plaintiffs- Appellants, v. DePAUL UNIVERSITY, a/k/a DePaul University College of Law, and DOES 1-20, Defendants-Appellees.

District & No. First District, Sixth Division Docket No. 1-12-2817

Filed September 26, 2014

Held In a class action by graduates of defendant law school who became (Note: This syllabus licensed attorneys but had difficulty obtaining full-time, legal constitutes no part of the employment with salaries high enough to allow them to service their opinion of the court but student loans, the appellate court affirmed the trial court’s dismissal of has been prepared by the their complaint alleging that defendant violated the Consumer Fraud Reporter of Decisions and Deceptive Business Practices Act and committed common-law for the convenience of fraud and negligent misrepresentation by publishing employment and the reader.) salary statistics that deceptively overstated the percentages of graduates who obtained full-time legal employment earning more than $70,000 and that plaintiffs relied on that information when deciding to enroll and remain enrolled in defendant school and graduated with juris doctorate degrees with job prospects that were less than what defendant claimed they would be, since plaintiffs did not adequately allege that defendant made any incomplete, false, deceptive, or misleading statements with respect to the employment information it provided regarding its graduates’ employment and salaries for the years alleged, and, furthermore, plaintiffs did not adequately allege reasonable reliance, proximate cause, or damages.

Decision Under Appeal from the Circuit Court of Cook County, No. 12-CH-003523; Review the Hon. Neil Cohen, Judge, presiding. Judgment Affirmed.

Counsel on Clinton Law Firm, of Chicago (Edward X. Clinton, Jr., and Edward X. Appeal Clinton, Sr., of counsel), for appellants.

Jones Day (Lawrence C. DiNardo and Tina M. Tabacchi, of counsel), and Varga Berger Ledsky Hayes & Casey (Norman B. Berger and Michael D. Hayes, of counsel), both of Chicago, for appellees.

Panel 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

-2- 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 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.

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.

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Phillips v. DePaul University
2014 IL App (1st) 122817 (Appellate Court of Illinois, 2014)