University of Pennsylvania Tuition, Room & Board Lawsuit

Date Filed: 4.30.2020

Case Number: 20-cv-02086

Location Filed: Eastern District of Pennsylvania

Plaintiff: Asha Smith

Summary: A Pennsylvania State University student (“student”) filed a class-action lawsuit against Pennsylvania State University demanding repayment for paid tuition, mandatory fees, or voluntary fees for privileges or services Pennsylvania State University failed to provide due to its COVID-19 related campus closure. Class Action Complaint and Jury Demand, Thomson v. Pennsylvania State Univ. Bd. of Trustees of Pennsylvania State Univ., 20-CV-03208 (M.D. Pa Apr. 30, 2020). The lawsuit was filed April 30, 2020, in the U.S. District Court for the Middle District of Pennsylvania and makes claims against Pennsylvania State University for breach of contract and unjust enrichment. Id. The lawsuit highlights that as a precondition for enrollment, the student was required to and did pay tuition, as did all members of the proposed Class. Id. Additionally, the student paid tuition and fees for in-person instruction at Pennsylvania State University, which covers not just the academic education, but encompass an entirely different experience from the online program, such as face to face interaction with professors, mentors, peers, extra-curricular activities, and facilities. Id. 

The suit claims Pennsylvania State University breached its contract with students by failing to provide those services and has otherwise not performed under the contract. Id. Alternatively, Pennsylvania State University is unjustly enriched because it continued to charge for tuition and reaping the financial benefit of millions of dollars from tuition-payers, despite sending students home, closing its campus and residence halls, and changing courses for the worse Class Action. Id.

The complaint reads, “although Pennsylvania State University is still offering some level of academic instruction via online classes, Plaintiff and members of the proposed Class have been and will be deprived of the benefits of on-campus learning.” Id. As of September 13, 2019, Pennsylvania State Univeristy's total endowment net assets exceeded $4 billion. James Barham, The 100 Richest Universities: Their Generosity and Commitment to Research TheBestSchools.org (2020), https://thebestschools.org/features/richest-universities-endowments-generosity-research/ (last visited Jun 15, 2020). 4.30.2020