96 F.4th 15
1st Cir.2024Background
- In Spring 2020, Boston University (BU) transitioned all classes and services to remote instruction due to COVID-19 and compliance with state emergency orders banning large gatherings.
- Plaintiffs, full-time students enrolled for in-person classes, sued BU for breach of contract and unjust enrichment, alleging they paid for but did not receive in-person instruction and services.
- BU incurred significant additional expenses to provide remote education and continued to offer academic credit, resources, and services online.
- The district court granted summary judgment for BU, citing impossibility of performance, and excluded plaintiffs’ expert testimony.
- While the appeal was pending, Massachusetts enacted Section 80 ("Law 80") retroactively granting immunity to universities for Spring 2020 pandemic-related transitions if certain conditions are met.
- The central appellate issue was whether retroactive application of Law 80 violates the Due Process Clause.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Law 80’s retroactive immunity violate due process? | Law 80 deprives students of vested contract rights and is not rationally related to any legitimate public purpose, especially enacted years after the emergency. | Law 80 addresses ongoing public and institutional interests, correcting financial disparities and protecting compliance with public health orders; it is rational and narrowly tailored. | Retroactive application is constitutionally permissible; Law 80 does not violate due process. |
| Did BU breach implied contracts mandating in-person instruction? | BU had impliedly promised in-person classes and services for tuition/fees paid. | No enforceable contract promising in-person instruction; impossibility/frustration doctrine applies due to legal prohibitions. | No actionable breach—any implied contract became impossible to perform per law. |
| Was summary judgment for BU proper? | Summary judgment was improper, especially exclusion of damages expert and denial of class certification. | Summary judgment was correct given impossibility and lack of actionable damages; plaintiffs’ claims legally untenable. | Affirmed summary judgment on alternate ground (Law 80). |
| Does Law 80 override plaintiffs’ contract/unjust enrichment claims? | Law 80 cannot constitutionally be applied to bar these claims or disrupt reliance interests. | Law 80 validly forecloses these claims because it is reasonable and narrowly tailored. | Law 80 bars the action; no constitutional violation found. |
Key Cases Cited
- Pension Benefit Guar. Corp. v. R.A. Gray & Co., 467 U.S. 717 (Supreme Court reaffirmed that retroactive economic legislation is constitutional if rationally related to a legitimate purpose)
- Landgraf v. USI Film Prods., 511 U.S. 244 (Supreme Court outlined standards for evaluating retroactive legislative statutes)
- U.S. Trust Co. of N.Y. v. New Jersey, 431 U.S. 1 (established analytical framework for contract clause and retroactive economic legislation)
- Home Building & Loan Ass’n v. Blaisdell, 290 U.S. 398 (upheld state law temporarily impairing contracts during emergency as a valid exercise of police power)
- Usery v. Turner Elkhorn Mining Co., 428 U.S. 1 (burden is on challenger to prove legislature acted arbitrarily in economic regulation)
