New Mexico School Sued for Breach of Contract

In recent Orlando breach of contact attorney news, three students from a New Mexico art school are suing the school for fraud and breach of contract.  The Santa Fe University of Art and Design, SFUAD, made the decision to close after Spring 2018 after a deal to sell the embattled school to a foreign company fell through.  The school was to be sold to Raffles Education Corp. of Singapore, but the Higher Learning Commission postponed accrediting the school, causing the deal to fall through.  The problem with such for-profit institutions is that the credits from those institutions are often not transferable to other institutions—at least not easily.  While some students may be able to finish their degrees in the next year or so, for students 19-year-old freshman Carlos Moreno, “It’s pretty much a year wasted.”  At between $14,000-20,000 per semester, that is an expensive year to waste.

The for-profit college is owned by Laureate, and the lawsuit states that the company intentionally left faculty, staff, and students in vulnerable positions.  While some transfer agreements are in place, obviously not everyone is happy about the situation.  Students feel they lured in with promises of being able to obtain a degree may now have spent tens of thousands of dollars with no degree to show for it.  It is any student’s nightmare.  As recently as a few months ago, the school was reported to be “downplaying the option of closing,” encouraging students that the school was still making plans for the next academic year, to hopefully avoid any breach of contract issues.

In the era of Corinthian College students getting massive student loan refunds, this lawsuit may have broader implications.  If the school or any of its representatives made false statements about the solvency of the school, the likelihood students would be able to complete a degree, or any other relevant factor that induced students to attend or remain at the school, the Santa Fe University of Art and Design may very well be the next Corinthian, and subject to breach of contract damages.  Follow the link for more information on this breach of contract lawsuit.




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