History
  • No items yet
midpage
244 N.C. App. 633
N.C. Ct. App.
2016
Read the full case

Background

  • MCHD (a private Montessori school) and Philip & Patricia Blizzard entered a written 2013–14 Lower Elementary Tuition Agreement enrolling the Blizzards’ daughter and obligating parents to pay $12,610 tuition due July 1, 2013.
  • The Agreement stated parents are obligated to pay the full year’s tuition and that withdrawal does not reduce liability unless the school requests withdrawal; it referenced compliance with school rules and the Family Handbook.
  • MCHD’s website and magazine ads described class characteristics (e.g., “Each classroom has up to 20 students” and an elementary student/faculty ratio of 10:1), but those materials were not incorporated into the written Agreement.
  • After learning the class would be expanded to about 24–25 students for 2013–14, the Blizzards decided their child would not attend and refused to pay tuition; MCHD sued for breach of contract.
  • The district court entered judgment for MCHD for $12,914.57 plus fees; the Blizzards appealed arguing MCHD breached the contract by increasing class size, excusing their nonpayment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether MCHD breached the tuition contract by increasing class size MCHD argued it complied with the written Agreement and enrolled the child; no contractual term limited future class size Blizzards argued website/ads and prior oral statements promised a max class size (20) or 10:1 ratio, so MCHD breached and plaintiffs were excused from payment Court held no breach: Agreement contained no class-size term and did not incorporate website/ads; defendants remained contractually liable for tuition
Whether extrinsic materials (webpage, ads, oral statements) became contract terms MCHD argued only the written Agreement and any incorporated handbook govern; extrinsic materials were not incorporated Blizzards argued those materials and pre-enrollment statements should be treated as binding contractual promises Court held extrinsic materials were not incorporated into the Agreement and did not create enforceable contractual promises
Whether plaintiff’s nonperformance (changing class size) relieved defendants from obligation MCHD maintained it fulfilled its obligations by enrolling the child and that the contract expressly preserved tuition liability despite nonattendance Blizzards contended MCHD’s change amounted to anticipatory/actual breach, excusing payment Court held no contractual breach by MCHD; defendants’ nonpayment was a breach entitling MCHD to damages

Key Cases Cited

  • Ryan v. Univ. of N.C. Hosps., 128 N.C. App. 300 (holding breach-of-contract claims against educational institutions require identifiable contractual promises)
  • Ross v. Creighton Univ., 957 F.2d 410 (7th Cir.) (to state breach, plaintiff must point to an identifiable contractual promise)
  • Booker v. Everhart, 294 N.C. 146 (discussing incorporation of documents by reference into contracts)
  • Ussery v. Branch Banking & Trust Co., 777 S.E.2d 272 (N.C.) (contracts construed from their four corners; clear terms are questions of law)
  • Poor v. Hill, 138 N.C. App. 19 (elements of breach of contract)
Read the full case

Case Details

Case Name: Montessori Children's House of Durham v. Blizzard
Court Name: Court of Appeals of North Carolina
Date Published: Jan 5, 2016
Citations: 244 N.C. App. 633; 781 S.E.2d 511; 2016 N.C. App. LEXIS 51; 15-406
Docket Number: 15-406
Court Abbreviation: N.C. Ct. App.
Log In
    Montessori Children's House of Durham v. Blizzard, 244 N.C. App. 633