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Latest Cases & Developments
Date:
Choh v. Brown Univ. (D. Conn. Oct. 9, 2024)
Opinion granting Defendants’ Motion to Dismiss. Plaintiffs, current and former student athletes, filed a putative class action, claiming a violation of Section 1 of the Sherman Act, 15 U.S.C. § 1 against Brown University, the Trustees of Columbia University in the City of New York, Cornell University, the Trustees of Dartmouth College, Harvard University, the Trustees of the University of Pennsylvania, Princeton University, Yale University, and the Ivy League Council of Presidents. Plaintiffs allege the Universities formed a price-fixing agreement, referred to by the Universities as “the Ivy League Agreement,” “not to provide athletic scholarships to their Division I Athletes and not to pay Ivy League Athletes any compensation (or reimbursement of education-related expenses).” Plaintiffs further allege the Agreement is per se illegal because the Universities are “horizontal competitors in the commercial activities in the Relevant service markets.” The Universities argued that they hold authority in setting rules for financial aid and compensation, and the ban on sports scholarship is meant to “foster campus cultures that do not prioritize athletics.” In finding that plaintiffs do not allege a cognizable antitrust violation, a restraint that violates the Rule of Reason, or the requirements for defining a plausible relevant market, the court wrote “at best, the plaintiffs’ allegations of anticompetitive effects relate to just some market participants, not effects in the market as a whole.”
Topics:
Antitrust | Athletics & Sports | Financial Aid, Scholarships, & Student Loans | Students | Taxes & FinancesDate:
Douglas v. The President & Fellows of Middlebury Coll. (Vt. Super. Oct. 3, 2024)
Opinion and Order granting in part and denying in part Defendant’s Motion for Summary Judgment. Plaintiff, the administrator of the estate of the former Governor of Vermont, brought claims of breach of contract, and unjust enrichment challenging Middlebury College’s decision to remove the Mead name from their campus chapel. In 1914, former Vermont Governor John Mead provided Middlebury College with the financial resources to build a chapel on its campus, which the College named the Mead Memorial Chapel. A century after Governor Mead’s passing, the College decided to remove the Mead name from the chapel. Plaintiff, the appointed special administrator for former Governor Mead’s estate, sued the College, alleging breach of the contract between the College and Mead, which included an alleged name condition. The College argued the chapel was a gift, that there is no name condition-subsequent attached to the gift, and that Mead’s intentions were donative in nature. The court, unable to determine whether the 1914 transaction falls into the category of a contract or a gift, held that the issue must be determined on the evidence at trial. The court found the College entitled to preliminary summary judgment because any naming condition is unenforceable if the transaction is determined to be a gift at trial. However, if the lower court finds the existence of a contract, questions remain as to whether the contract includes terms requiring the chapel to retain the name “Mead Memorial Chapel” in perpetuity. The court dismissed plaintiff’s unjust enrichment claim in light of plaintiff’s inability to demonstrate the retained benefit the College is receiving from the name change. In denying summary judgment related to the claim for breach of good faith and fair dealing, the court held that the jury must first resolve the question of fact as to whether the transaction was a gift or a contract.
Topics:
Endowments & Gifts | Taxes & FinancesDate:
U.S. Department of Education Announces Successful Beta 1 Testing for the 2025–26 FAFSA form as Beta 2 Testing Begins (Oct. 16, 2024)
The U.S. Department of Education announced the launch of the second stage of testing (Beta 2), for the 2025-26 Free Application for Federal Student Aid (FAFSA). During the first stage of testing, (Beta 1) over 650 students successfully submitted applications; 586 institutions received 6,266 Institutional Student Information Records (ISIRs) generated by applications; and dozens of student corrections were successfully completed. During Beta 2, participating institutions will ask students to submit the FAFSA form as returning students for the 2025-26 cycle and begin downloading and testing ISIRs to the extent their financial aid systems are able to do so. Beta 1 testing results can be found at www.FAFSA.gov/beta.
Topics:
Financial Aid, Scholarships, & Student Loans | StudentsDate:
U.S. Department of Labor Artificial Intelligence and Worker Well-being Principles and Best Practices for Developers and Employers (Oct. 16, 2024)
The U.S. Department of Labor published a comprehensive roadmap designed to ensure artificial intelligence enhances job quality and safeguards workers’ rights and well-being. The document provides an overview of how to implement practices that prioritize ethical development of AI standards; ensure meaningful human oversight; prioritize transparency; protect labor and employment rights; and secure and protect worker data.
Topics:
Ethics | TechnologyDate:
Fenchak v. The Penn. State Univ. Board of Trustees (Ct. Com. Pl. Centre Cnty. Ct. Oct. 9, 2024)
Opinion and Order granting Plaintiff’s Emergency Motion for Preliminary Injunction. Plaintiff, a current alumni-elected member of The Pennsylvania State University Board of Trustees, filed suit seeking to compel the University to disclose certain investment and financial documents, as well as a copy of an athletic events vendor contract that he alleges are needed to fulfill his fiduciary duty as a member of the Board. Three days after filing suit, plaintiff attended a Board meeting wherein he was gifted a hat, which he told a trio of University employees made him resemble a “penis with a hat on.” Thereafter, the University launched an investigation that led to a recommendation to remove plaintiff from the Board for violating the Trustee Code of Conduct. Plaintiff then sought a preliminary injunction from the court to prohibit the Board from voting on the removal recommendation, which he claims is in retaliation for his filing suit rather than animated by his comments to University staff. The court ruled an injunction was necessary to prevent plaintiff’s removal from the Board, which would inhibit his ability to prosecute the underlying documents case. It reasoned that although it “does not condone” plaintiff’s behavior towards University personnel, the “offending remark was an approximate quote” from the 1992 movie, “A League of their Own.” Litigation on the merits proceeds.
Topics:
Governance | Governing Boards & AdministratorsDate:
House v. NCAA (N.D. Cal. Oct. 7, 2024)
Order granting preliminary approval for the proposed Settlement Agreement. The Agreement resolves three pending antitrust lawsuits, House v. NCAA, Hubbard v. NCAA, and Carter v. NCAA, and upon final approval will (1) require the NCAA and its conferences to pay over $2.5 billion to athletes, (2) allow institutions to make direct payments to athletes, and (3) expand the availability of compensation and benefits to athletes. The claims period will run from October 18, 2024, to January 31, 2025, with a Fairness Hearing to follow on April 7, 2025.
Topics:
Athletics & SportsDate:
Florio v. Gallaudet Univ. (D.C. Cir. Oct. 4, 2024)
Opinion disagreeing in part and affirming the judgment of the district court. Plaintiffs, four alumni of a Gallaudet University fraternity sued the University, its Board, the President, and The Washington Post for defamation after the University President referred to the fraternity as “the face of systemic racism.” The comment followed the fraternity’s reintroduction of hooded robes resembling those worn by hate groups and a resurfaced photo of members performing the Bellamy salute, wherein participants extend their right arm at an upward angle. The district court found that since the plaintiffs were not directly mentioned in the President’s statement, the comment was a non-actionable opinion, and further reasoned that the similarity between the Bellamy and Nazi salutes also made the claim substantially true and thus, non-actionable. In conducting a de novo review, the Circuit Court agreed that the statements were protected opinions, but disagreed regarding the photograph, reasoning that “each of the individuals in the photo is readily identifiable because all of their faces are visible” and the statement was made in reference to them. Notwithstanding, the Court still found the disputed statements were not actionable and affirmed the lower court’s ruling.
Topics:
Litigation, Mediation & Arbitration | Tort Litigation
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