COVID-19 College Refunds

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7^th Circuit Court of Appeals

Case Name: Kelsey Delisle v. McKendree University

Case No.: 21-2988

Officials: Ripple, Scudder, and Lee, Circuit Judges.

Focus: COVID-19 College Refunds

In March 2020, McKendree University, along with other colleges in Illinois, made the decision to close its campus and transition to remote instruction as a result of the COVID-19 risks. Prior to the campus shutdown, McKendree offered both on-campus and online degree programs. Despite the closure, McKendree chose not to provide any refunds to its in-person students for tuition or fees. Consequently, the plaintiffs, who were enrolled in McKendree’s on-campus program during the shutdown, filed a lawsuit against the university, alleging breach of contract and unjust enrichment.

Upon review, the Seventh Circuit overturned the dismissal of the lawsuit, highlighting its recent precedent that established the possibility of presenting certain evidence, such as course catalogs, class registration systems, and pre-pandemic practices of the university, as sufficient grounds under Illinois law to claim the existence of an implied contract between a university and its students regarding in-person instruction and extracurricular activities. The complaint in this particular case is deemed to be just enough, albeit barely, to establish a claim at the pleading stage. According to Illinois law, the relationship between students and universities is considered contractual, and the obligations of the parties under this contract are inferred from their actions and behavior, rather than relying on an explicit oral or written agreement.

Decided 07/12/23

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