Thomas M. Cooley Law School v. Kurzon Strauss, LLP

978 F. Supp. 2d 849, 2013 U.S. Dist. LEXIS 150443, 2013 WL 5603256
CourtDistrict Court, W.D. Michigan
DecidedSeptember 30, 2013
DocketCase No. 1:11-CV-844
StatusPublished

This text of 978 F. Supp. 2d 849 (Thomas M. Cooley Law School v. Kurzon Strauss, LLP) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas M. Cooley Law School v. Kurzon Strauss, LLP, 978 F. Supp. 2d 849, 2013 U.S. Dist. LEXIS 150443, 2013 WL 5603256 (W.D. Mich. 2013).

Opinion

OPINION AND ORDER

ROBERT J. JONKER, District Judge.

This matter is before the Court on a series of motions for summary judgment Defendants have filed (docket ## 184,186, 200, 237). These motions articulate a range of theories, but all center on the fundamental dispute in this case: Plaintiff Thomas M. Cooley Law School’s (“Cooley”) claim that Defendants made false statements that hurt Cooley. The Court has heard oral argument on the motions, thoroughly reviewed the record, and carefully considered the applicable law. The motions are ready for decision.

Factual and Procedural Background

Cooley is a non-profit corporation organized under Michigan law with its principal place of business in Lansing, Michigan. (Compl, docket # 1-1, at ¶ 2.) Cooley describes itself as “the largest American Bar Association accredited law school in the United States by total enrollment, with campuses in Lansing, Ann Arbor, Auburn Hills, and Grand Rapids, Michigan.1 (Id.) At the time the Complaint was filed, Defendant Kurzon Strauss LLP (“KurzonStrauss”) was a law firm organized as a New York limited liability partnership.2 Defendant Jesse Strauss is a citizen of New York and an attorney licensed to practice in New York. (Id. at ¶ 5; Strauss aff., docket # 238, at ¶ 2.) In 2011, he was one of two members of Kurzon-Strauss.3 (Strauss aff., docket # 238, at ¶ 4.) Defendant David Anziska is a citizen of New York and an attorney. (Compl., docket # 1-1, at ¶ 4.) Between May 1, 2011 and September 30, 2011, Mr. Anziska “served as of counsel” to Kurzon-Strauss. (Anziska aff., docket # 202, at ¶ 3.)

In early May 2011, Mr. Anziska “began to explore the possibility of suing law schools for inflating their post-graduate employment data.” (Id.) He became interested in the issue after reading a New York Times article entitled “Is Law School [853]*853a Losing Game?” profiling several recent law school graduates who had been unable to secure work in the field of law. (Id. at ¶ 4. and Ex. 2.)4 The article includes quotations from law professors:

Enron-type accounting standards have become the norm,” says William Henderson of Indiana University, one of many exasperated law professors who are asking the American Bar Association to overhaul the way law schools assess themselves.... It is an open secret, Professor Henderson and others say, that schools finesse survey information in dozens of ways[J
“I think the student loans the kids leave law school with are more scandalous than payday loans, says Andrew Morriss, a law professor at the University of Alabama. “And because it’s so easy to get a student loan, law school tuition has grossly outpaced the rate of inflation for the last 20 years. It’s now astonishingly high.”

(Id.) Mr. Anziska also read an article by Paul Campos, a law professor from the University of Colorado Law School, entitled “Served: How Law Schools Completely Misrepresent Their Job Numbers.” 5 (Id. at ¶ 5 and Ex. 3.) The article posits that “[l]aw schools ... make it much harder than it needs to be [for potential law students to decide whether to invest in a legal education] by publishing misleading data about their employment statistics.” (Id. at Ex. 3.) In early May 2011, Mr. Anziska contacted Mr. Campos and discussed the article with him. (Id. at ¶ 6 and Ex. 4.) He also told Mr. Campos that “we are definitely interested in retaining you as a litigation consultant.” (Id.) The same month, Mr. Anziska reviewed blogs and websites that discussed the employment situation for recent law school graduates. (Id. at ¶ 7.) He communicated with three or more blog authors, including Cryn Johannsen, author of the blog “All Education Matters.” (Id. at ¶ 8.) He read other articles, papers, and reports concerning the ways law schools report employment data. (Id. at ¶ 9) These materials included, among others: Jason M. Dolin, “Deciphering Law Schools’ PostGraduate Employment Data;” (published in The Ohio Lawyer); Kyle McEntree & Patrick Lynch, “A Way Forward: Improving Transparency in Employment Reporting at American Law Schools (http:// papers.ssrn.eom/sol3/papers.cfm?abstract_ id=1528862); Joel Murray, “Professional Dishonesty: Do U.S. Law Schools that Report False or Misleading Employment Statistics Violate Consumer Protection Laws” (June 7, 2011); “Selected Findings for the Class of 2010” published by the National Association for Legal Career Professionals (“NALP”). (Id.) Mr. Anziska also reviewed a website called JD Underground, at jdunderground.com, and another entitled The Thomas Cooley Law Scam Blog, at thomas-cooley-law-schoolscam.weebly.com. (Id. at ¶ 13.) At both of these websites, he viewed “unflattering posts” about Cooley. (Id.) On the All Education Matters website, Mr. Anziska viewed a report that the Department of [854]*854Education “was investigating Cooley for failing to adequately disclose its graduates’ true default rates.” (Id.) On the same website, he viewed a post reporting that “recent Cooley graduates were defaulting [on student loan repayments] at a 41 percent rate.” (Id.)

It is undisputed that on June 8, 2011, Mr. Anziska posted the following statement on the website “JD Underground,” hosted at http://www.qfora.com/jdu:

My firm is currently conducting a broad, wide-ranging investigation of a number of law schools for blatantly manipulating their post-graduate employment data and salary information. These schools are preying on the blithe ignorance of naive, clueless 22-year-olds who have absolutely no idea what a terrible investment obtaining a JD degree is. Perhaps one of the worst offenders is the Thomas Cooley School of Law, which grossly inflates its post-graduate employment data and salary information. More ominously, there are reports that there [sic] students are defaulting on loans at an astounding 41 percent, and that the school is currently being investigated by the DOE for failing to adequately disclose its students’ true default rates. Unfortunately, the ABA has proven to be absolutely toothless in regulating these schools and stamping out these dubious practices, and most likely schools like Thomas Cooley will continue to defraud unwitting students unless held civilly accountable. If you have any relevant information or know of anyone who has attended Thomas Cooley feel free to contact me at anziska@ kurzonstrauss.com. Obviously, all correspondences will be kept strictly confidential.

(Compl., docket # 1-1, at ¶ 8; Anziska aff., docket # 202, at ¶ 15.)

On June 13, 2011, counsel for Cooley contacted Mr. Anziska via telephone and written correspondence. (Compl., docket # 1-1, at ¶ 12 and Ex. B.) Cooley’s counsel summarized the telephone conference in a cease and desist letter:

As Dean Thelen advised you on the telephone, several statements in your posting are, quite simply, false, reckless, defamatory, and actionable. Specifically, without limitation the following statements are factually wrong and per se actionable:
• ... [0]ne of the worst offenders is the Thomas Cooley School of Law, which grossly inflates its post-graduate employment data and salary information.
• ...

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Bluebook (online)
978 F. Supp. 2d 849, 2013 U.S. Dist. LEXIS 150443, 2013 WL 5603256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-m-cooley-law-school-v-kurzon-strauss-llp-miwd-2013.