Ajibola v. Ohio Med. Career College, Ltd.
122 N.E.3d 660
Ohio Ct. App.2018Background
- Plaintiffs Felecia Madison and Yvette Hubbard enrolled in Ohio Medical Career College’s “One Plus One” nursing program in Feb. 2016, relying on college representatives’ statements about hospital clinical placements and that the program would lead to an Associate of Applied Science in Nursing.
- The student handbook contained a "Student Completion Requirement Policy" but did not disclose a minimum HESI exam score as a graduation prerequisite; an Assignments Schedule for NUR 207 later stated a 850 HESI cutoff to pass the course.
- Five students (including plaintiffs) failed to reach the 850 HESI threshold and did not graduate; the State Board of Career Colleges and Schools found no violations in May 2017 and recommended retaking NUR 207.
- Plaintiffs sued the College and its directors for fraud, breach of contract, negligent misrepresentation/negligence, and OCSPA violations; defendants moved to dismiss under Civ.R. 12(B)(6).
- The trial court dismissed all claims with prejudice; the appellate court reversed as to fraud, breach of contract, negligent misrepresentation, and OCSPA claims and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Fraud (fraudulent inducement / omissions) | College misrepresented program clinic sites and degree availability and concealed HESI graduation requirement; plaintiffs justifiably relied and suffered damages. | Plaintiffs waived administrative remedies; no duty to disclose; misstatements immaterial; no damages because plaintiffs failed to graduate. | Reversed dismissal — pleadings state viable fraud claim (duty to disclose may exist; reliance and damages plausible). |
| Breach of contract (enrollment agreement + handbook) | Imposition of an undisclosed HESI graduation requirement breached the contract terms and representations. | HESI minimum was a course requirement for NUR 207, not a separate graduation term, and consistent with handbook. | Reversed dismissal — factual disputes (e.g., whether HESI was a separate graduation requirement) preclude dismissal. |
| Negligence / Negligent misrepresentation | College supplied false/misleading information causing pecuniary loss; negligent misrepresentation is pled. | Claims merely allege educational malpractice (non-cognizable). | Reversed dismissal in part — negligent misrepresentation claim survives; pure educational-malpractice allegations may be deficient. |
| OCSPA violations | College’s representations and omissions were deceptive under OCSPA regulations and caused consumer harm. | OCSPA claims are merely repackaged educational-malpractice allegations and fail. | Reversed dismissal — OCSPA claims tied to viable fraud/negligent-misrepresentation allegations survive pleading-stage dismissal. |
Key Cases Cited
- Volbers-Klarich v. Middletown Mgt., Inc., 125 Ohio St.3d 494 (2010) (elements of common-law fraud)
- Perrysburg Twp. v. Rossford, 103 Ohio St.3d 70 (2004) (de novo review standard for dismissal)
- Delman v. Cleveland Hts., 41 Ohio St.3d 1 (1989) (elements of negligent misrepresentation)
- Jack Turturici Family Trust v. Carey, 196 Ohio App.3d 86 (2011) (duty to disclose when partial/ambiguous statements are misleading)
- Amerifirst Savings Bank of Xenia v. King, 196 Ohio App.3d 468 (1999) (justifiable reliance is a factual question)
- Lepera v. Fuson, 83 Ohio App.3d 17 (1992) (reliance and reasonableness principles)