Malone v. Academy of Court Reporting
Decision Date | 31 December 1990 |
Docket Number | Nos. 90AP-264,90AP-430,s. 90AP-264 |
Citation | 582 N.E.2d 54,64 Ohio App.3d 588 |
Court | Ohio Court of Appeals |
Parties | , 71 Ed. Law Rep. 231 MALONE et al., Appellants, v. ACADEMY OF COURT REPORTING et al., Appellees. * |
Winkfield & Brooks Co., L.P.A., and Walter G. Brooks, Columbus, for appellants.
Gruber, Moriarty, Fricke & Jaros and Thomas P. Marotta, Cleveland, for appellees.
This is an appeal from a judgment of the Franklin County Court of Common Pleas dismissing plaintiffs' second amended complaint on the basis of Civ.R. 12(B)(6) and striking the complaint from the files. Plaintiffs-appellants ("plaintiffs") frame three "Issues Presented for Review," which we will consider as assignments of error:
Plaintiffs are a group of former students who enrolled with defendant-appellee, Academy of Court Reporting. The academy is a private school marketing and operating a paralegal curriculum in Columbus, Ohio. Plaintiffs instituted this action against the academy on October 27, 1988. Plaintiffs' second amended complaint, which is the subject of this appeal, was filed on November 8, 1989. The trial court ordered the clerk to accept this complaint on November 8, 1989.
The second amended complaint alleges the following facts. In 1987, the academy solicited plaintiffs to induce them to enroll in the school's paralegal curriculum at $1,200 per quarter tuition. The academy solicited students by mail, telephone, advertising presentations, and door-to-door canvassing, all in an effort to schedule potential students for enrollment interviews. During the course of these interviews and presentations, the academy represented that successful completion of its paralegal curriculum would yield an associate's degree in paralegal studies, that the school had job placement services, and that commencing salaries upon completion of the course work were guaranteed at or around $20,000 to $25,000 per year. The academy also represented that its school was intense, describing it as "the Harvard of paralegal schools." Further, the academy represented that the school had admission standards, a financial aid program, training courses in both Westlaw and Lexis, library facilities, and that hours were transferable to the Ohio State University.
In 1988, plaintiffs learned that the academy had not been certified or accredited to issue an associate degree for paralegal studies by the State Board of School and College Registration. After inquiring about this, plaintiffs were allegedly given misleading and inaccurate answers from the school. Eventually, all of the plaintiffs withdrew from the school except one. This one student, like the others, has been unable to secure any employment as a paralegal despite the $11,000 tuition she had paid to the school.
The second amended complaint includes eight individual counts against the academy, representing the combined claims of plaintiffs Lori Malone, Kim Mamone, Heidi Sheppard, Cinda Cason, and Angel Mason. In these counts, plaintiffs allege fraud, breach of contract, violations of the Ohio Consumers Sales Practices Act, R.C. 1345.01 et seq., and violations of the Ohio Home Sales Solicitation Act, R.C. 1345.23(B).
As to plaintiffs' allegations of the second amended complaint, the trial court wrote in its decision of January 12, 1990:
"These allegations are not cognizable by this Court because the legislature, in recognition of sound public policy, has committed the regulation of such a school as at hand to the State Board of School and College Registration. * * * "
After noting the persuasive regulatory powers of the board, the court wrote:
Further, the court stated:
Thus, the trial court sustained the academy's motion to dismiss the complaint and motion to strike the complaint from the files.
Plaintiffs contend in their assignment of error that the delegation of power to the board of accreditation should not preclude or delay the relief requested in this case.
Apparently, the trial court concluded that, since the legislature committed the regulation and accreditation of private schools to the jurisdiction of the board, common-law or statutory claims against regulated schools were abrogated or precluded. The trial court cited two "primary jurisdiction" cases to support its conclusion. In one case, the often-cited United States v. Western Pacific RR. Co. (1956), 352 U.S. 59, 77 S.Ct. 161, 1 L.Ed.2d 126, the United States Supreme Court explains the doctrine of primary jurisdiction as follows:
* * *
* * * "(Citations omitted.) Id. at 63-64, 77 S.Ct. at 165, 1 L.Ed.2d at 132.
While several Ohio cases have applied the doctrine of primary jurisdiction to state claims in the context of federal regulation, no Ohio case thus far has applied this principle of federal administrative law in connection with Ohio administrative agencies. See Pacific Products, supra; Cleveland Elec. Illum. Co. v. Cleveland (1976), 50 Ohio App.2d 275, 4 O.O.3d 247, 363 N.E.2d 759. Cf. Franklin Cty. Sheriff's Dept. v. Fraternal Order of Police, Capital City Lodge No. 9 (Jan. 23, 1990), Franklin App. No. 89AP-498, unreported, 1990 WL 4288, reversed (1991), 59 Ohio St.3d 173, 572 N.E.2d 93. Even if we were to recognize the doctrine, it would not be applicable in this case. There is no evidence herein of any overriding need for uniformity or that the agency has some special expertise concerning the subject matter of plaintiffs' complaint. Plaintiffs' complaint alleges common-law and statutory claims.
There is no indication in the applicable statutes that the legislature intended the agency to have primary jurisdiction. R.C. Chapter 3332, which governs certification of private schools, provides a remedy in the form of a bond for tuition reimbursement on account of fraud or misrepresentation used in procuring enrollment. See R.C. 3332.08. The liability of the school is limited to $10,000 in the aggregate for all...
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