244 N.C. App. 633
N.C. Ct. App.2016Background
- 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)
