Computer Training Inst. of Chi., LLC. v. U.S. Dep't of Veterans' Affairs, 13 C 7100
Court | United States District Courts. 7th Circuit. United States District Court (Northern District of Illinois) |
Parties | COMPUTER TRAINING INSTITUTE OF CHICAGO, LLC., Plaintiff, v. UNITED STATES DEPARTMENT OF VETERANS' AFFAIRS, Defendant. |
Docket Number | No. 13 C 7100,13 C 7100 |
Decision Date | 17 March 2015 |
MEMORANDUM OPINION AND ORDER
After the Illinois Department of Veterans' Affairs (the "Illinois VA") notified plaintiff that it was withdrawing approval of plaintiff's education programs for participation in the GI Bill, plaintiff filed suit against the United States Department of Veterans' Affairs ("USVA"). The USVA moves to dismiss. For the reasons set forth below, the Court grants the motion.
Veterans are entitled to certain educational benefits under a law commonly known as the GI Bill, but veterans are entitled to benefits only if their "course is approved." 38 U.S.C. § 3672(a). Some courses of study, such as certain accredited college programs, are automatically deemed approved. See 38 U.S.C. § 3672(b)(2)(A)(i) (). Other programs areconsidered for approval on a case-by-case basis, presumably to prevent the United States from paying for programs with no educational value.
With respect to the programs considered for approval on a case-by-case basis, Congress gave the approval authority to the states. Specifically, Congress asked each state "to create or designate a State department or agency as the for such State" (38 U.S.C. § 3671(a)) and then gave each State approving agency the authority to approve courses "in accordance with the provisions of this chapter and chapters 34 and 35 of this title and such other regulations and policies as the State approving agency may adopt." 38 U.S.C. § 3672(a). The State approving agencies are required to notify the USVA of the courses they have approved. 38 U.S.C. § 3672(a) ().
The State approval agencies also have the authority to disapprove previously-approved courses and are required to notify the USVA of such disapprovals, as well. 38 U.S.C. § 3679(a) (); 38 U.S.C. § 3672(a) (). To that end, the USVA has promulgated regulations concerning the disapproval of courses by State approving agencies. The regulations state:
38 C.F.R. § 21.4259(a)(1) & (2).
In considering this motion to dismiss, the Court takes as true the allegations in plaintiff's complaint and also considers the documents plaintiff attached to its complaint. Fed.R.Civ.P. 10(c).
Plaintiff Computer Training Institute of Chicago, LLC ("CTIC") is in the business of offering non-accredited, non-degree computer classes. On January 11, 2012, the "[US]VA, through the Illinois State Approving Agency for Veterans Education Benefits ("SAA"), approved CTIC's application to provide the following non-accredited, non-college degree programs to veterans: Adobe Desktop Publishing, CCNA, CCNP and Security Combo; CompTIA and MCTS Combo; Medical Billing and Coding; MS Office and Quick Books Combo; and Project Management and Six Sigma Combo." (Complt. ¶ 6).
Within eight months, the Illinois VA, which is the State approving agency ("SAA") for Illinois, disapproved CTIC's previously-approved programs. As CTIC alleges, "[o]n August 3, 2012, CTIC received a letter from the SAA, which informed CTIC that the SAA had suspended the approval of the Educational Programs for sixty days." (Complt. ¶ 9) (emphasis added). In the letter, the Illinois VA stated, among other things:
(Compl. Exh. A). CTIC continued to train students who were already enrolled. Later, the VA refused to pay for the education CTIC provided to those students after August 3, 2012.
On October 12, 2012, CTIC received from the Illinois VA a letter "indicating that the SAA's approval of the Education Programs was withdrawn." (Complt. ¶ 14). In the letter, the Illinois VA stated, among other things:
(Complt. Exh. C).
Neither the USVA nor the Illinois VA notified CTIC of any right to appeal. Nonetheless, CTIC wrote the USVA a letter. CTIC described its letter as an "Appeal of State Approving Authority Withdrawal of Programs." (Complt. Exh. D). On or about November 28, 2012, CTIC received a response from the Illinois VA's General Counsel. In the letter, the General Counsel stated, among other things:
(Complt. Exh. E) (emphasis in original).
CTIC alleges that "VA's actions in suspending and withdrawing CTIC's Educational Programs were arbitrary, capricious [and] an abuse of discretion." (Complt. § 22). In Count I, plaintiff seeks relief under the Administrative Procedures Act. As relief, CTIC demands that the Court "[r]everse the VA's decision withdrawing CTIC's Educational Programs" and "[o]rder the VA to pay . . . for the Educational Programs [CTIC] provided to veterans subsequent to August 3, 2012." (Complt. at 6). In Count II, CTIC alleges that defendant deprived plaintiff of its "property interest in the economic benefits" of the GI Bill without due process. (Complt. ¶¶ 32-33). As relief, CTIC demands the Court "[r]everse the VA's decision withdrawing CTIC's Educational Programs" and "[...
To continue reading
Request your trial