FUNG v. LIBERTY UNIVERSITY
6:25-cv-00058
W.D. Va.Jul 18, 2025Background
- Gail Fung, a New Jersey resident, filed a discrimination lawsuit against Liberty University, a Virginia-based university, after not being permitted to graduate from its Ph.D. program despite alleging she met all requirements.
- The allegations include discrimination, retaliation, and failure to provide proper academic guidance, with claims under Title VI, Title IX, and FERPA.
- Fung filed in New Jersey state court; Liberty removed to federal court, asserting federal jurisdiction and seeking dismissal or transfer based on a forum selection clause in student contracts requiring suit in Virginia.
- Fung disputed ever signing or agreeing to the contracts containing the forum selection clause, calling them fraudulent.
- The federal court evaluated the appropriateness of transfer to the Western District of Virginia under 28 U.S.C. § 1404(a) by assessing both contract validity and convenience factors.
- The court determined that, even if the forum selection clause was disputed, the Jumara private and public interest factors supported transfer to Virginia.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability of forum selection clause | Fung denied ever agreeing to the contracts or forum selection; alleged documents are fake | Liberty argued Fung's conduct (enrollment, payment) shows assent to contract | Court could not definitively resolve contract validity, but saw a strong case for enforceability |
| Proper venue | New Jersey is proper because Fung resides there | Virginia is proper per forum selection and because events occurred in Virginia | Court held Western District of Virginia is proper venue |
| Convenience & interest of justice under § 1404(a) | No specific prejudice argued beyond residency | Most witnesses, documents, and events are in Virginia; trial there is more convenient | Transfer is justified by convenience and interest of justice |
| Dismissal for lack of PJ, venue, service | N/A | Liberty moved for these in alternative | Not reached, court transferred on convenience grounds |
Key Cases Cited
- Jumara v. State Farm Ins. Co., 55 F.3d 873 (3d Cir. 1995) (establishes private and public interest factors for venue transfer)
- Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22 (U.S. 1988) (articulates deference to valid forum selection clauses under § 1404(a))
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (U.S. 1972) (forum selection clauses presumptively valid)
- Van Dusen v. Barrack, 376 U.S. 612 (U.S. 1964) (guides transfer of venue analysis)
- Solomon v. Cont'l Am. Life Ins. Co., 472 F.2d 1043 (3d Cir. 1973) (district courts have broad discretion in venue transfers)