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  • Date:

    OCR Resolution Agreement with the University of Cincinnati re Title VI Compliance (Dec. 20, 2024)

    Resolution Agreement between the U.S. Department of Education, Office for Civil Rights (OCR) and the University of Cincinnati resolving a complaint that the latter responded inadequately to alleged discrimination based on shared Jewish and Palestinian ancestry. The associated Resolution Letter noted that the University had notice of approximately two dozen reports of alleged harassment based on Jewish or Palestinian ancestry, during the 2023-2024 academic year. OCR’s investigation found that the University was under responsive to reports of shared ancestry harassment it received, in that if the underlying speech was protected no further action was taken to remediate potential harm occasioned by the speech. OCR reiterated institutional obligations to address alleged harassment even if a complaint could not identify a perpetrator by name; the conduct was not directed at a specific individual; the conduct involved multiple perpetrators or a registered student organization; or the conduct occurred off campus. The Agreement sets forth the University’s commitment to: (1) provide training to investigators, staff, officers, and students, (2) conduct a climate assessment, (3) engage in file reviews, (4) revise University policies and procedures, and (5) report out regarding training, assessment, and reviews. 

    Topics:

    Discrimination, Accommodation, & Diversity | Race and National Origin Discrimination | Religious Discrimination & Accommodation

  • Date:

    U.S. Department of Education DCL on Long-Term Debt Used for Property, Plant, and Equipment – Treatment of Non-bond and Bond indebtedness, and Treatment of Leases (Dec. 20, 2024)

    The U.S. Department of Education Dear College Letter (DCL) on Long-Term Debt Used for Property, Plant, and Equipment – treatment of Non-bond and Bond Indebtedness, and Treatment of leases. The Letter supersedes the April 9, 2020 Electronic Announcement. The Letter includes several scenarios intended to clarify how property, plant, and equipment (PP&E) and non-bonding long-term debt are treated for the composite score calculation for nonprofit and proprietary institutions. Additionally, the Letter provides alternative options for the treatment of bond long-term debt, as well as information about pre- and post- implementation leases.   

    Topics:

    Real Estate Transactions | Real Property, Facilities & Construction | Taxes & Finances

  • Date:

    ACE Amicus Brief in Casey Cunningham v. Cornell University (Jan. 8, 2025)

    Amicus Brief from the American Council on Education (ACE) and 13 other higher education associations in Casey Cunningham v. Cornell University. The case turns on whether federal courts should require specific allegations of mismanagement to proceed with a claimed Employee Retirement Income Security Act (ERISA) violation, or, if a more lenient pleading standard should apply. Through this amicus brief, the associations ask the Supreme Court of the United States to affirm the Second Circuit’s decision, upholding the lower court’s reasonable pleading standard that allows legitimate claims to proceed while requiring complaints to specifically allege impropriety in an institution’s contract with a third-party service provider. The associations argue that adopting the more relaxed pleading standard proposed by plaintiffs will hinder current effective plan administration, and burden institutions with excessive costs to defend against or settle unwarranted litigation. Argument on the case is set for January 22, 2025.  

    Topics:

    Employee Benefits | Employee Retirement Income Security Act (ERISA) | Faculty & Staff

  • Date:

    NACUBO On Your Side (Jan. 6, 2025)

    Summary from the National Association of College and University Business Officers on legislative and regulatory actions that occurred from December 10, 2024 – January 6, 2025. This summary highlights: (1) the averted government shutdown due to Congress approving the continuing resolution (CR) to fund the federal government through March 14, 2025, to ensure that federal agencies will continue operating at current funding levels; (2) the Department of Education (the Department) officially ended a portion of a rulemaking effort from early 2024 to address cash management, state authorization, and accreditation provisions; additionally, the Department published the final rules on Return to Title IV, distance education, and the Federal TRIO program, set to become effective July 1, 2026; (3) the Department clarified that its revised reporting deadline of January 15 for Financial Value Transparency and Gainful Employment (FVT/GE) regulations will not be extended; (4) the Department announced that it had compiled a set of training resources for the FVT/GE regulations; and, finally (5) on December 16th, the Consumer Financial Protection Bureau (CFPB) published a report on violations related to student loan refinancing, private lending and servicing, debt collection, and federal loan servicing.  

    Topics:

    Accreditation, Authorizations, & Higher Education Act

  • Date:

    Jill Hines v. Alex Stamos (W.D. La. Dec. 18, 2024)

    Memorandum Order denying without prejudice Defendants’ Motions to Dismiss. Plaintiffs, social media users with significant followings, brought a putative class action lawsuit on behalf of themselves and others similarly situated, alleging the Aspen Institute, the Board of Trustees of the Leland Stanford Junior University, the Leland Stanford Junior University, the Stanford Internet Observatory, the Atlantic Counsel, the Atlantic Counsel’s Digital Forensic Research Lab, and several individuals (the Defendants) caused plaintiffs’ “disfavored” viewpoints (namely, their speech concerning COVID-19 and elections) to be censored, and remain engaged in ongoing censorship. Plaintiffs allege Defendants were “active participants, if not architects, of a vast censorship scheme, and—in collaboration with government officials—actively monitored, targeted, and ultimately induced social media platforms to censor [their] speech (among many others).” The District Court initially decided the issue of arbitrability in a manner adverse to Defendants, Defendants appealed, and the Fifth Circuit held that the lower court must first determine personal and subject matter jurisdiction before considering arbitrability. On remand, the District declined to grant dismissal finding that plaintiffs were entitled to limited discovery pertaining to both jurisdiction and standing. First, the Court reasoned that plaintiffs’ claim that Defendants’ engaged in censorship in Louisiana by “assigning analyst[s] specifically to Louisiana, determining whether speech originated in Louisiana, tracking the speech’s spread from Louisiana, and communicating with state officials in Louisiana about supposed disinformation” was a sufficient preliminary showing of jurisdiction suggestive of “the possible existence of the requisite [minimum] contacts” with the State to oblige Defendants to bear the burdens of jurisdictional discovery, and thus, denied the motion to dismiss. Next, as to standing, it distinguished Murthy v. Missouri, 144 S. Ct. 1972 (2024), reasoning that absent a request for preliminary injunction and its corresponding heighted burden plaintiffs need not aver “that a particular defendant pressured a particular platform to censor a particular topic before that platform suppressed a particular plaintiff’s speech on that topic,” therefore, plaintiffs’ mere allegation that Defendants, “participation in the Election Integrity Project and Virality Project, caused plaintiffs to be censored on social media platforms” was adequate to access preliminary discovery.  

    Topics:

    Constitutional Issues | First Amendment & Free Speech | Litigation, Mediation & Arbitration | Social Media

  • Date:

    Rageh v. Univ. of N.C. (M.D. N.C. Dec. 10, 2024)

    Memorandum Opinion and Order granting in part and denying in part Defendants’ Motion to Dismiss. Plaintiff, a medical doctor, over the age of forty, and of Egyptian national origin alleged that during his ophthalmology fellowship at the University of North Carolina at Chapel Hill, the University discriminated against him and retaliated against him based on his national origin and age, under Title VII and the Age Discrimination in Employment Act (ADEA). Plaintiff also brought claims for defamation per se, breach of contract, negligent or intentional infliction of emotional distress, interference with contractual relations, tortious interference with prospective economic advantage, and wrongful discharge in violation of public policy (hereinafter referred to as state law claims). Plaintiff was in a two-year fellowship at the University to receive training in ophthalmology. During his time in the program, he alleged one of his supervising physicians mocked his accent, criticized him for mispronunciation, and frequently allowed younger residents to participate in operations more than him. Plaintiff alleges the same supervising physician refused to work with him after expressing unjustified concerns about plaintiff’s skills and issues with patient safety, and after plaintiff brought his concerns to a supervisor, he alleges he was retaliated against when the University shortened his fellowship to one year. Plaintiff filed a charge with the Equal Employment Opportunity Commission (EEOC), and alleges the University subsequently terminated his fellowship. Plaintiff contends that he was informed by the University’s fellowship director that he was terminated because he filed the EEOC complaint, and the fellowship director informed plaintiff’s potential employers and state licensing boards that plaintiff was relieved from seeing patients due to safety concerns. The court allowed the ADEA claim, and Title VII claim based on denial of training opportunities to proceed, based on plaintiff’s allegations that (1) he was over forty years old during the fellowship, (2) the supervising physician provided him with fewer training opportunities than younger residents, (3) the supervising physician expressed concerns about plaintiff’s age to the fellowship director before plaintiff’s fellowship had even started, and (4) plaintiff’s position as a protected class member. However, the court found plaintiff failed to allege facts supporting his claim that his fellowship was shortened and then terminated due to either his age or his national origin, and as such, it dismissed the ADEA and Title VII claims related to the addended length and subsequent termination of the fellowship. It denied the University’s motion to dismiss plaintiff’s retaliation claims, finding plaintiff’s claim that the fellowship director informed him that he was terminated because of his EEOC filing was sufficient to give rise to a plausible inference of retaliation. The court dismissed plaintiff’s state law claims against the University, but allowed the defamation per se claim to proceed against the fellowship director based on the allegation that the director informed plaintiff’s prospective employers that he was terminated due to patient safety concerns. For the same reason, the court permitted the interference with prospective economic advantage claim to proceed. Finally, the court allowed plaintiff to proceed with his wrongful interference with employment contract based on both the fellowship director and supervising physician’s purported knowledge of his employment contract, alleged false allegations made by the supervising physician about plaintiff’s skills with intent to induce the University to breach the contract, and the fellowship director’s steps to allegedly induce the University to breach it’s employment contract with plaintiff based on his filing with the EEOC.  

    Topics:

    Compliance & Risk Management | Discrimination, Accommodation, & Diversity | Race and National Origin Discrimination | Retaliation

  • Date:

    Labrador v. Bd. of Educ. (Idaho Dec. 5, 2024)

    Order vacating and remanding the District Court’s grant of partial summary judgment and dismissal. Plaintiff, the Attorney General for the State of Idaho brought claims against the Idaho Board of Education (the Board) alleging violation of the State’s Open Meetings Law (OML) following a series of meetings and communication regarding the approved proposal for the University of Idaho to purchase the University of Phoenix. The acquisition, which proponents referred to during negotiations as “Project Neptune” was approved by the Board during a public meeting in May of 2023, prior to which it held three executive sessions – in March, April, and May – that were closed to the public. The dispute centered primarily upon whether during the trio of executive sessions the Board was engaged in “preliminary negotiations” regarding the purchase and “in competition with the governing bod[y]” of another state, which is a recognized exception to the requirement that government conduct business in public under Idaho law. In addition, the plaintiff sought but was denied leave to amend the original complaint to challenge the adequacy of the notice given prior to the public meeting during which Project Neptune was approved. After a bench trial found no violation of OML, plaintiff appealed and argued the court incorrectly defined and applied legal standards in its rulings on discovery and summary judgment, and that in denying plaintiff’s motion to amend, it incorrectly found that his claim pertaining to the public meeting notice did not relate back to the original claims regarding the trio of executive sessions. The Supreme Court of Idaho reasoned that based upon “public policy objectives plainly expressed within [OML] coupled with the applicable canons of statutory construction” the trial court erred in its deference to Defendants’ subjective belief regarding potential competition with other states and applied an overly “expansive interpretation” of the phrase “preliminary negotiations” which “does not mean ‘all negotiations’ … [but] a phase of negotiations preliminary to final negotiations.” And although Supreme Court of Idaho agreed with the lower court’s conclusion that plaintiff’s challenge to the Board’s failure to file an adequate notice regarding the May 2023 public meeting was untimely, it found that plaintiff’s expanded challenge to the April executive session arose directedly from the original claims, and thus, related back. Accordingly, it vacated the trial court decision and remanded the case for further discovery prior to disposition on motion or at a trial on the merits. 

    Topics:

    Financial Exigency & Institutional Merger & Closure | Governance

  • Date:

    U.S. Dept. Of Education, Office for Civil Rights Resource for Individualized Assessments for Students with Disabilities in Postsecondary Education (Jan. 3, 2025)

    U.S. Department of Education, Office for Civil Rights resource regarding Section 504 of the Rehabilitation Act of 1973 “Individualized Assessments for Students with Disabilities in Postsecondary Education.” The Resource reiterates Section 504’s prohibition against one size fits all accommodations, and the requirement that recipients of federal financial assistance must individually assess each student’s need for accommodation via the requisite interactive process. It cautions against inflexibility and rigid adherence to past practice while providing examples of potential individualized academic adjustments.  

    Topics:

    Accessible Facilities | Disability Discrimination | Discrimination, Accommodation, & Diversity

  • Date:

    U.S. Dept. of Education Amends the Student Assistance General Provisions on Distance Education and Return of Title IV, HEA Funds (Jan. 3, 2025)

    U.S. Department of Education (the Department) Final Rule regarding the Student Assistance General Provisions regulations, which govern participation in the student financial assistance programs authorized under Title IV of the Higher Education Act (HEA). The Regulations clarify, update, and consolidate certain provisions applicable to distance education, and the return of Title IV, HEA funds. It imposes technical changes to the TRIO program regulations to reflect the current status of the Republic of Palau as a member of the Freely Associated States and provides notice of withdrawal of the remainder of the proposed rulemaking regarding the TRIO program. The Regulations are effective July 1, 2026. 

    Topics:

    Accreditation, Authorizations, & Higher Education Act | Financial Aid, Scholarships, & Student Loans | Higher Education Act (HEA) | Students

  • Date:

    U.S. Dept. of Education withdrawal of Notice of Proposed Rulemaking “Nondiscrimination on the Basis of Sex in Education Programs or Activities Receiving Federal Financial Assistance… (Dec. 26, 2024)

    U.S. Department of Education (the Department) withdrawal of the Notice of Proposed Rulemaking (NPRM) “Nondiscrimination on the Basis of Sex in Education Programs or Activities Receiving Federal Financial Assistance: Sex-Related Eligibility Criteria for Male and Female Athletic Teams.” The NPRM published April 13, 2023, and provided that “if a recipient adopts or applies sex-related criteria that would limit or deny a student’s eligibility to participate on a male or female team consistent with their gender identity, such criteria must, for each sport, level of competition, and grade or education level: (i) be substantially related to the achievement of an important educational objective, and (ii) minimize harms to students whose opportunity to participate on a male or female team consistent with their gender identity would be limited or denied.” The Department received over 150,000 comments on the NPRM within thirty days. In recognition of multiple pending lawsuits related to the application of Title IX in the context of gender identity and athletic eligibility criteria, as well as the numerous comments opposed to the NPRM, the Department withdrew the NPRM and terminated the rulemaking process.  

    Topics:

    Athletics & Sports | Gender Equity in Athletics | Students | Title IX & Student Sexual Misconduct