FIGUEROA v. POINT PARK UNIVERSITYFIGUEROA v. POINT PARK UNIVERSITY
MEMORANDUM OPINION ON DEFENDANT‘S MOTION TO DISMISS
I. PREFACE
In Spring 2020 the global Covid-19 pandemic necessitated the closure of campuses worldwide and a temporary transition of essentially all United States post-secondary instruction to online. The question before this Court, as before numerous others nationwide, is not whether this sweeping alteration in the educational experience of students previously receiving a traditional on-campus post-secondary education was foreseeable, voluntary, or avoidable by either party. Clearly it was not. Nor is the question whether Defendant was justified in closing its campus. Clearly it was. Nor is the question whether the university made appropriate efforts in response to an unprecedented public health crisis. Surely it did. The question is: did the educational institution have a contractual obligation to provide in-person, on-campus learning to the Plaintiffs? And: (a) If so, is it excused from financial liability for a difference in value between the institution‘s traditional education and the virtual education necessitated (a difference perhaps informed by its own online course fees), as by, e.g., a force majeure clause in its contract?1 Or (b) If not, are the students nonеtheless entitled to restitution, as by a theory of unjust enrichment or quantum meruit?
These are the questions that must inform the assignment of this portion of the pandemic losses - of education, employment, savings, homes, friendships, family, life itself - which befell us. And they are ones on which District and State Courts across the country continue to be divided. For the reasons set forth fully below, the Court finds in answer to Defendant‘s Motion to Dismiss that Plaintiffs have stated a claim for (a) breach of contract under Pennsylvania law or, in the alternative, (b) unjust enrichment/quantum meruit. It further concludes that they have failed to state a claim for conversion.
II. FACTUAL AND PROCEDURAL BACKGROUND
Plaintiffs (Rafael Figueroa, Kahlil Cabble, Ty‘Anthony Scott, and Ryan Petty) and the putative class members are students who were participating in Defendant‘s on-campus educational program for the Spring 2020 semester. Defendant, Point Park University (“PPU” or “University“), is a private university with a principal campus located in downtown Pittsburgh, Pennsylvania. The University offers major fields for undergraduate students, as well as a number of graduate programs. It offers the traditional on-campus post-secondary degree program in which Plaintiffs were enrolled, and which was being provided to them in the first part of their Spring 2020 semester. It also offers an
The university requires, as do some others, that students electing to “proceed[] with the online registration process” accept the “financial registration terms and conditions” set forth in the one-page document of the same name. The Financial Registration Terms and Conditions (the “FRTC“) provides, as one would expect, specific payment obligations being assumed by the student. These include the section headings: Financial Responsibility, Late Fees/Business (Student Accounts) Hold, Collection Costs and Credit Reporting and Collection Communications.3 The final two sections contain (a) a Withdrawal Policy under which a student who “officially” drops or withdraws from classes “during the determined tuition refund periods” is “eligible for a refund of all or a portion of tuition and fees”4 and (b) a reservation of PPU‘s
“right to change the financial registration terms and conditions at any time“, with a recommendation that the student therefore review them periodically. Notably, the FRTC does not contain any express reciprocal obligation on the part of the University whatsoever. It does not, e.g., contain any express provision obligating PPU to provide instruction of any kind (in-person or other) or even to process the student‘s registration. Nor does it contain any specification of the amounts or parameters of the charges the student is assertedly contracting to pay for “tuition, fees, room, board” and unspecified “other charges“. It contains no merger clause or
*8 (E.D. Pa. Apr. 20, 2021) (concluding that university‘s website descriptions of fees as supporting a wide range of services only available/accessible on campus “amount[ed] to a specific promise to provide [those] services, resources and facilities to students” and “[t]he absence of language entitling students to fee refunds in the event of a suspension of operations or closure does not relieve [university] of its obligation to provide what it specifically promised“). Nor does it insulate Defendant from liability under a theory of unjust enrichment or quantum meruit. Cf. e.g., Bergeron v. Rochester Inst. of Tech., 2020 WL 74866682, *7 (W.D.N.Y. Dec. 18, 2020) (declining “to find Plaintiffs had no reasonable expectation of a refund based on [university]‘s refund policy” and declining to dismiss claims for breach of contract or unjust enrichment).
Plaintiffs allege that in exchange for amounts charged for their traditional education, Defendant undertook to provide benefits and services unique to in-person learning - such as an active, urban campus environment “in the heart of Downtown Pittsburgh“; “a full calendar of [on-campus] student activities and events“; and the friendships, collaborations and social interactions of campus life. ECF No. 34 at 7; see e.g., Complaint at ¶ 42. These additional benefits and services are assertedly represented through various PPU materials made available to students, such as PPU‘s website, catalogs, promotional materials, circulars, and other admission papers and publications. See e.g., Complaint at ¶¶ 42-43. Plaintiffs therefore allege that, under Pennsylvania law, these writings contained terms of their implied-in-fact contract with PPU.
In March 2020, part-way through the Spring semester and in response to the pandemic and government mandates, PPU closed its campus facilities and in-person services and activities and moved all classes to virtual learning platform(s).6 Plaintiffs allege that:
The cancellation of all in-person campus activity resulted in a unilateral reduction in benefits and services provided to Plaintiffs. The benefits provided to Plaintiffs during the latter part of the Spring, 2020 semester were similar to those offered to Point Park‘s online degree students, who pay a significantly lower tuition. The University‘s decision not to provide the agreed upon educational services and not to provide any refund of Plaintiffs’ tuition or fees resulted in a breach of the contract between students and the University, and inequitable retention of funds by the University.
ECF No. 27 at 1.7
Plaintiffs’ putative class action brings claims for breach of contract, and in the
Defendant moved to dismiss on February 3, 2021 and filed its Brief in Support at ECF No. 26. Plaintiffs’ Brief in Opposition and Defendant‘s Reply thereto were timely filed at ECF No. 27 and 28, respectively. There followed three (3) filings in April of Supplemental Authorities by Defendant and each party‘s May 2021 supplemental briefings. ECF Nos. 29-31, 34-35. The Court has considered the parties’ briefs, together with the cases subsequently cited. It has also conducted a careful independent review of relevant Pennsylvania law (particularly regarding the contractual relationship between students-universities) and a multitude of decisions in nationwide student-university pandemic refund cases issued both prior and subsequent to the parties’ filings in this action.
III. APPLICABLE STANDARD OF REVIEW
The United States Court of Appeals for the Third Circuit has summarized the standard to be applied in deciding motions to dismiss filed pursuant to
Under the “notice pleading” standard embodied in
Rule 8 of the Federal Rules of Civil Procedure , a plaintiff must come forward with “a short and plain statement of the claim showing that the pleader is entitled to relief.” As explicated in Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009), a claimant must state a “plausible” claim for relief, and “[a] claim has facial plausibility when the pleaded factual content allows the court to draw thereasonable inference that the defendant is liable for the misconduct alleged.” Although “[f]actual allegations must be enough to raise a right to relief above the speculative level,” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007), a plaintiff “need only put forth allegations that raise a reasonable expectation that discovery will reveal evidence of the necessary element.” Fowler, 578 F.3d at 213 (quotation marks and citations omitted); see also Covington v. Int‘l Ass‘n of Approved Basketball Officials, 710 F.3d 114, 117-18 (3d Cir. 2013).
Thompson v. Real Estate Mortg. Network, 748 F.3d 142, 147 (3d Cir. 2014). See also Plastic Surgery Ctr., P.A. v. Aetna Life Ins. Co., 967 F.3d 218, 229 (3d Cir. 2020) (“The court must accept all factual allegations in the complaint as true and draw all reasonable inferences in the [nonmoving party]‘s favor.“).
In ruling on a motion to dismiss, the Court may consider “the allegations contained in the complaint, exhibits attached to the complaint and matters of public record” together with any document “integral to or explicitly relied upon in [framing] the complaint.” Schmidt v. Skolas, 770 F.3d 241, 249 (3d Cir. 2014) (quoting Pension Benefit Guar. Corp. v. White Consol. Indus., Inc., 998 F.2d 1192, 1196 (3d Cir. 1993)); In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir. 1997).9 The FRTC proffered by Defendant as an Exhibit to its Brief in
Support of Motion to Dismiss, ECF No. 26-1, and to which Plaintiffs have responded, is therefore properly considered in review of said Motion. See EFC No. 26 аt 3, n. 1.
IV. ANALYSIS
A. Plaintiffs Have Stated a Claim for Breach of Contract Under Pennsylvania Law
1. Pennsylvania Student-University Relationships are Governed by the Law of Implied Contracts
Under Pennsylvania law, the basic elements of a breach of contract claim are “(1) the existence of a contract, including its essential terms, (2) a breach of the contract, and (3) resultant damages.” Meyer, Darragh, Buckler, Bebeneck & Eck, P.LL.C. v. Law Firm of Malone Middleman, P.C., 137 A.3d 1247, 1258 (2016) (quoted in McCabe v. Marywood Univ, 166 A.3d 1257, 1262 (Pa. Super. Ct. 2017) (considering action for breach of implied contract premised on university‘s website and “various publications and materials“)).10
In Pennsylvania, as in other states, “the relationship between a private educational institution and an enrolled student is contractual in nature . . . .” Swartley v. Hoffner, 734 A.2d 915, 919 (Pa. Super. Ct. 1999) (“Based upon the prior statements of our Court, as well as the numerous learned decisions of other courts, we now hold that . . . .“).11 And, as
there was [a] specific undertaking, in the student handbook and catalog or otherwise” that was not met, but dismissing action as оne for “educational malpractice” where complaint “amount[ed only] to a general allegation of lack of a quality education, without more“).12
In Cavaliere, the Pennsylvania Superior Court considered whether the student-plaintiffs, who assertedly received “inadequate and improper instruction, in breach of an alleged implied contract for a quality education” could state a cause of action. Id. at 398-99 (emphasis added). The Court noted the rationale for declining to recognize a cause of action for educational malpractice. Id. at 401-02. It also noted, however, that in certain situations a private educational institution may be subject to an action for breach of contract. Id. at 402 (citing with approval Paladino v. Adelphi Univ., 89 A.2d 85 (N.Y. 1982) and Malone v. Academy of Court Reporting, 582 N.E.2d 54 (Oh. Ct. App. 1990)).13 The Cavaliere Court concluded that the case before it presented a “general allegation of a lack of a quality education, without more” and therefore, did not state a claim. It did, however, concur with “the distinction drawn by” the Paladino and Malone courts, to allow an action where “the nature of the contractual undertaking and the breach thereof are clear and the plaintiff may be able to establish a cause of action against the offеnding institution.” Id. at 403-04. Cavaliere closed with an overview of the determinative
shortcomings in that action, including that it did not “allege . . . any specific undertaking, in the student handbook and catalog or otherwise” or that “there was any other specific misrepresentation or failure to perform a contractual undertaking“. See also Swartley v. Hoffner, 734 A.2d 915, 919 (Pa. Super. Ct. 1999); McCabe v. Marywood Univ., 166 A.3d 1257, 1261 (Pa. Super. Ct. 2017).
Because the multi-faceted contractual relationship between a university and its students is generally not documented within a single integrated express writing, it is comprised of - and the courts look to - the many different representations provided to the students during their enrollment. That is, student-university contracts are considered under the law of implied (or
[t]he contract between a private institution and a student is comprised of the written guidelines, policies, and procedures as contained in the written materials distributed to the student over the course of their enrollment in the institution. See, e.g., Merrow v. Goldberg, 672 F. Supp. 766, 774 (D. Vt. 1987) (“The terms of the contract are contained in the brochures, course offering bulletins, and other official statements, policies and publications of the institution.“); Jansen v. Emory Univ., 440 F. Supp. 1060, 1062 (N.D. Ga. 1977) (citing Mahavongsanan v. Hall, 529 F.2d 448 (5th Cir. 1976)).
Swartley v. Hoffner, 734 A.2d 915, 919 (Pa. Super. Ct. 1999). See also McCabe, 166 A.3d at 1261 (looking to the “various publications and materials produced by Marywood“, including the “website and literature” relied on by plаintiff “as the terms of an implied contract” in assessing university‘s alleged breach of contractual duty).15 Cf. Hickey v. Univ. of Pittsburgh, 2021 WL
1630579, *4 (W.D. Pa. Apr. 27, 2021) (noting that the implied contractual relationship between student-university recognized under Pennsylvania law is “not governed by a single document” but is comprised of the materials identified in Swartley); id. at *4 (looking to specific language from “websites, promotional materials, circulars, admission papers, and publications” in assessing plaintiffs’ claim of implied contract).
In Pennsylvania, as elsewhere, “breach of contract actions brought by a
See also, generally, 15A Am.Jur.2d Colleges and University, Section 25, Relationship between student and university (“The student/university relationship is essentially contractual in nature. The terms of the contract may include statements provided in student manuals and registration materials, as well as catalogues, bulletins, circulars, and regulations of the institution made available to the student. When a student enrolls at a university, an implied contract arises . . . .“); see also, e.g., Metzner v. Quinnipiac Univ., 2021 WL 1146922 , at *8 (D. Conn. Mar. 25, 2021) ( “Because a student bases his or her decision . . ., in significant part, on the documents received concerning core matters, such as faculty, curriculum, requirements, costs, facilities and special programs, application of contract principles based on these documents and other express or implied promises . . . appears sound.” ) (citation omitted).
As noted, supra, in Swartley the Pennsylvania Superior Court cited with approval the examples of representational materials set forth by the District Court of Vermont in Merrow. More recently, that same Vermont District Court made clear (as did the Pennsylvania Superior Court in McCabe) that the university representations encompassed under the Swartley-Merrow standard include those made in online materials/websites. See Patel v. Univ. of Vt. & State Agric. College, 2021 WL 1049980 (D. Vt. Mar. 15, 2021).
In light of Defendant‘s briefings, the Court emphasizes the clarity with which its survey of decisions revealed both (1) a decades-long and wide adoption of the general principles set forth in the treatise cited above - i.e., student-university contracts are considered under the jurisprudence of implied contrаct and courts generally broadly consider official materials promulgated by a university in determining the specific representations on which its students might reasonably rely; and (2) that Pennsylvania law has developed in accord with these same principles.
also e.g., Botts, 2021 WL 1561520, *11 (“[A]s with any Maryland breach of contract claim, a student plausibly states a claim under Rule 12(b)(6) if she states facts showing a contractual obligation owed . . . and [breached]“). Thus, the question is one of the Plaintiffs’ reasonably foreseeable reliance on the alleged specific promise, just as in any other implied contract analysis. See Gati v. Univ. of Pittsburgh of Com. Sys. of Higher Educ., 91 A.3d 723, 731 (Pa. Super. Ct. 2014) (The “essence of the bargain between student and university” is the student‘s “reasonable expectation based on statements of policy by [the university] and the experience of former students . . . .“).17 See also e.g., Arredondo v. Univ. of La Verne, 2021 WL 1588995, *2 (C.D. Cal. Apr. 21, 2021) (“Because no formal contract typically exists between a student and university, ‘the general nature and terms of the agreement are usually implied, with specific terms to be found in the university bulletin and other publications . . . .’ To determine whether representations from such sources become part of the contract, the Court looks at thе reasonableness of the parties’ expectations at the time the contract was formed by considering the totality of the circumstances. ‘The reasonableness of the student‘s expectation is measured by the definiteness, specificity or explicit nature of the representation at issue.‘“) (citations omitted); Nguyen v. Stephens Inst., 2021 WL 1186341, *3 (N.D. Cal. Mar. 30, 2021) (similar statement of principles); Walker v. President & Fellows of Harvard Coll., 840 F.3d 57, 61-62 (1st
Cf. also ECF No. 26 at 2 (“Pennsylvania law is clear that contracts between universities and their students must be comprised of express, written promises and cannot be supplemented (or changed) by implied contract terms or course of conduct.“). After careful and informed consideration, the Court must strongly differ with this parenthetical quotation to the extent it is intended to read the law of implied contracts out of the Pennsylvania Court cases applying it or to confine consideration of the parties’ contractual relationship to the terms of the FRTC. The Court further notes that Plaintiffs sub judice assert written representations in university-promulgated materials properly considered under governing Pennsylvania law.
Cir. 2016) (“Where [a student] sues a school alleging breach of contract, the standard of reasonable exрectation applies” and “courts ask . . . what meaning the party making the manifestation, the university, should reasonably expect the other party, the student, to give it“); Durbeck v. Suffolk Univ., 2021 WL 2582621, *8 (D. Mass. June 23, 2021) (finding that implied-in-fact contract derived from university‘s representations “viewed in context with the Plaintiffs’ payments of fees and tuition” and pre-pandemic “registration for and attendance at on-campus classes“).18
For Plaintiffs to maintain a claim for breach of contract, the Complaint allegations must of course be “sufficient to draw the reasonable inference that the parties engaged in conduct giving rise to an implied-in-fact contract” under the presently applicable standard. 8 KT.TV, LLC v. Entest Biomedical, Inc., 2011 WL 5374515, at *5 (M.D. Pa. Nov. 7, 2011). And ultimate determinations of a contract‘s existence and terms are for the finders of fact. Ingrassia Constr. Co. v. Walsh, 486 A.2d 478, 483 (Pa. Super. Ct. 1984).
2. Under Pennsylvania Law, Plaintiffs State a Claim for Breach of Implied Contract Based on Reasonably Foreseeable Reliance on Defendants’ Written Representations of In-Person On-Campus Education Provided at a Premium
Applying the law of Pennsylvania more specifically to the case before this Court on Motion to Dismiss:
The FRTC is an unintegrated document (1) setting forth express written undertakings solely on the part of the student, and (2) which on its face requires reference to external documents and/or representations to complete otherwise amorphous or ambiguous terms.19
These
Plaintiffs point to the written materials informing their contractual relationship with Defendant (e.g., promotional materials, circulars, admissions papers, and publicаtions) assertedly evidencing a mutual understanding that tuition and other charges on students’ accounts were paid for components of their traditional post-secondary education, i.e. one delivered in-person and on campus. Complaint at ¶ 42-43.21 See also ECF No. 34 at 9 (noting PPU‘s website distinction between “[a]n undergraduate first-time student[, who] is someone who . . . will attend on-campus classes” and an “online degree” student,
WL 1049980, *7 (where “course catalogue distinguishes between ‘online’ and other types of instruction” and “website tout[s] the advantages of” university campus, “factfinder could conclude that [university] promised its students that their academic courses would be largely in-person and that they would receive the benefits of on-campus (and adjacent) facilities and activities“); id. (collecting cases to reaсh same conclusion); Verlanga v. Univ. of S.F., 2020 WL 7229855, *4 (Cal. Super. Ct. Nov. 12, 2020).23
3. Plaintiffs’ Claim is Not Barred as a Claim of Educational Malpractice
Finally, and relatedly, Plaintiffs raise no claim of “educational malpractice“. Defendant asserts, however, as an alternative ground for dismissal, that Plaintiffs’ claims are not viable because they cloak what is essentially an impermissible challenge to PPU‘s academic discretion. See ECF No. 26 at 13-14; id. at 2 (“[C]ourts widely agree that complaints attacking educational quality and pedagogical choices are inherently speculative and do not survive dismissal.“).
Like most other jurisdictions, this Court‘s jurisdiction does not recognize an action for general “educational malpractice”24 but does permit one for breach of a contract. See e.g., Cavaliere, 605 A.2d at 403-04 (dismissing action where “there is no pleading of any other specific misrepresentation or failure to perform a contractual undertaking [and t]he sole allegation is that the instruction and instructors provided by the school were generally inadequate and of low quality“); id. at 404 (noting that court could “fathom no policy against permitting a cause of action for breach of contract” against the school where “the nature of the contractual undertaking and the breach thereof are clear“). See also Durbeck, 2021 WL 2582621, *3; Ross v. Creighton Univ, 957 F.2d 410, 417 (7th Cir. 1992) (distinguishing claim that university failed to perform adequately from claim “that it failed to perform [a particular] service at all“).
Patel, 2021 WL 1049980, *5 (Plaintiffs “bargained for in-person instruction and studies . . . , access to [university] buildings and amenities, participation in on-campus student activities and physical proximity to the [city] . . .“); Durbeck, 2021 WL 2582621, *10 (“Plaintiffs plead an implied-in-fact contract for far more than just ‘academic requirements, courses or programs of study‘“); Ford v. Rensselar Polytechnic Inst., 2020 WL 7389155, *6 (N.D.N.Y. Dec. 16, 2020) (“[W]hat a student expects to receive in exchange for tuition money covers much more territory than simply the right to take classes.“); Bergeron, 2020 WL 74866682, at *7-8; Botts, 2021 WL 1561520, *13 (rejecting university‘s contention that its only obligation was that “if the student complies with the terms prescribed . . . , the student will obtain a degree“). Cf. e.g., Complaint at ¶ 42 (“The true college experience doesn‘t just happen in classes . . . . It‘s what happens when you live on campus.“) (quoting PPU website section describing student‘s “home” on “unique urban campus” and opportunities, activities and events on-campus and in the city).
This Court concurs, therefore, with the significant majority of Courts across the country which have cоnsidered whether a similar post-pandemic claim should be precluded as a claim for educational malpractice and concluded it should not.25 More
4. Summary of Analysis Regarding Denial of Motion to Dismiss as to Plaintiffs’ Breach of Contract Claim
To summarize, then, the Court‘s determination on Plaintiffs’ breach of contract claim:
Plaintiffs sufficiently plead an implied contract under Pennsylvania law “to provide in-person, on-campus instruction, experiences, and activities.” ECF No. 34 at 4. They specifically allege that PPU promised - in the official materials promulgated in electronic and print form during the students’ enrollment - a particular method of instruction27 for which students paid a
premium in tuition and fees, but delivered a lower-cost option which the students had previously declined.28 Defendant points to
B. In the Alternative, Plaintiffs Have Stated a Claim of Unjust Enrichment or Quantum Meruit
Defendant asserts that Plaintiffs (a) may not state a claim for unjust enrichment as a matter of law because they have an adequate remedy under their breach of contract theory and (b) fail to plead facts sufficient to state a claim. ECF No. 26 at 15. Plaintiffs respond that their unjust enrichment claim is pled in the alternative and sufficiently. ECF No. 27 at 18-20.
- all of which were located on the campus thereby implying in-person participation“); Milanov v. Univ. of Mich., 2020 WL 7135331, *3 (Mich. Ct. Cl. July 27, 2020).
A contract implied-in-law, known as a “quasi-contract” or “unjust enrichment“, is a legal fiction created by common law courts to permit recovery by contractual remedy in cases where there is found to be, in fact, no contract, but where circumstances are such that justice warrants a recovery as though there had been a promise. See Restatement (Second) of Contracts, § 4 (1981). Thus, a party with an otherwise adequate remedy at law cannot claim unjust enrichment. However, as there are sometime inadequacies in contractual remedies at law, it is widely accepted practice to pursue unjust enrichment in the alternative at the pleading stage.
Indeed,
A right of recovery under the doctrine of unjust enrichment is essentially equitable, its basis being that in a given situation it is contrary to equity for one to retain a benefit which has come to him at the expense of another. To state a claim for unjust enrichment under Pennsylvania law, a plaintiff must allege: (1) benefits conferred on defendant by plaintiff; (2) appreciation of such benefits by defendant; and (3) acceptance and retention of such benefits under such circumstances that it
Plaintiffs allege (1) they paid tuition and other fees to PPU, and PPU provided a traditional in-person on campus education for the first portion of the Spring 2020 semester and an online education for the second portion; but (2) it was reasonable for Plaintiffs to have expected, in reliance on PPU‘s specific representations, a continuation of their traditional education for the entire Spring semester. Drawing all reasonable inferences in Plaintiffs’ favor, and despite PPU‘s provision of grades and academic credit, it cannot be said as a matter of law that PPU‘s actions were not unjust under the circumstances. See, e.g., Durbeck, 2021 WL
2582621, *12 (“Even if [Plaintiffs] received a substantial benefit from [their] payments of tuition and fees, it may still be inequitable for [the university] to retain their full value.“) (quoting Rhodes, 2021 WL 140708, *7). Whether the partial failure of consideration alleged was de minimis or sufficient to justify at least partial reimbursement of tuition and/or other fees paid to PPU is, as Plaintiffs duly note, “a matter of proof” appropriate for a later stage of the proceedings. ECF No. 27 at 20.31
In sum, whether and to what extent the parties have entered into a contractual relationship for the provision of in-person on-campus educational services will be better resolved following discovery.32 Plaintiffs
C. Plaintiffs Have Failed to State a Claim for Conversion
Defendant asserts that under Pennsylvania law, “a claim for conversion cannot stand when there is a contract between the parties that governs the same disputed funds.” ECF No. 26 at 17 (citing Scott v. PNC Bank, Nat‘l Ass‘n, 785 F.App‘x 916, 920 (3d Cir. 2019)). It also asserts that Plaintiffs have failed to allege breach of any duty “imposed by law as a matter of social policy.” Id. See also Bruno v. Erie Ins. Co., 106 A.2d 825, 829 (Pa. 1992).
Under Pennsylvania law, the required elements of a conversion claim are: “(1) the deprivation of another‘s right of property in, or use or possession of, a chattel, or other
interference therewith, (2) without the owner‘s consent, and (3) without lawful justification.” Vavro v. Albers, 2006 WL 2547350, at *13-14 (W.D.Pa. Aug. 31, 2006) (quoting McKeeman v. Corestates Bank, N.A., 751 A.2d 655, 659 n. 3 (Pa. Super. Ct. 2000)). See also Shonberger v. Oswell, 530 A.2d 112, 114 (Pa. Super. Ct. 1987) (citing Stevenson v. Economy Bank of Ambridge, 197 A.2d 721, 726 (Pa. 1964)).33
As in other states, money may be a chattel for the purposes of conversion in Pennsylvania. Id. (citing Pearl Assurance Co. v. National Ins. Agency, 30 A.2d 333, 337 (Pa. Super. Ct. 1943). As conversion contemplates re-delivery of goods, however, the funds must be able to be described, identified, or segregated in thе manner that a specific chattel can be. See, e.g., Pioneer Commercial Funding Corp. v. Am. Fin. Mortgage Corp., 855 A.2d 818, 827, n. 21 (Pa. 2004) (funds must be in some way “identifiable“); In re Zambrano Corp., 2010 WL 8354694, at *6 (Bankr.W.D.Pa. Aug. 24, 2010) (funds can be identified by, e.g., description or segregation from other funds). And, however they are identified, there must be “an obligation on the part of the defendant to return the specific coin or notes [e]ntrusted to his care“, rather than an obligation to return monies generally. Alexander & Co. v. Goldstein, 13 Pa. Super. 518, 522 (1900).
The Court concurs with other courts to have considered students’ claims of conversion against their universities in a pandemic tuition/fee restitution context and concluded that such claim cannot be maintained. First, a plaintiff may not ordinarily recover for the tort of conversion for a breach of duty that simply restates a contractual obligation. See e.g., Nguyen, 2021 WL 1186341, *5 (“An omission to perform a contract obligation is never a tort, unless
that omission is also an omission of a legal duty.“) (citations omitted).34 Moreover, Plaintiffs simply cannot bring a
return property held in trust . . . , the tort of conversion is inapposite. [In addition], . . . Plaintiffs have not plausibly alleged that the purportedly wrongfully held tuition actually ‘belonged’ to” them once relinquished to pay for semester‘s tuition).
Defеndant‘s Motion to Dismiss will therefore be granted as to this claim.
V. CONCLUSION
The Court concludes that Plaintiffs’ claims for (a) breach of an implied contract for a traditional in-person, on-campus experience for the Spring 2020 semester and (b) unjust enrichment or quantum meruit in the alternative are not precluded and that, drawing all reasonable inferences in their favor, Plaintiffs have sufficiently identified facts that suggest a plausible entitlement to recovery/restitution. Defendant‘s Motion to Dismiss, ECF No. 25, will therefore be denied as to those Counts of the Complaint. The Court further concludes that Plaintiffs have failed to state a claim of conversion, and Defendant‘s Motion will therefore be granted as to that Count. A separate Order will be entered.
Dated: August 11, 2021
BY THE COURT:
LISA PUPO LENIHAN
United States Magistrate Judge