Wednesday, September 5, 2012

New Jersey appellate court reinstates Consumer Fraud Act claim by disgruntled alumna against for-profit school


Superior Court of New Jersey,
Appellate Division.

Shatina D. SUAREZ, PlaintiffAppellant/Cross–Respondent,
v.
EASTERN INTERNATIONAL COLLEGE, f/k/a Microtech Training Center, Inc., Defendant–Respondent/Cross–Appellant.

Argued Nov. 29, 2011.
Decided Aug. 23, 2012.

SYNOPSIS


Background: Graduate brought action against for-profit technical school alleging violations of Consumer Fraud Act (CFA) and common law fraud on basis that she was falsely told that she would be able to perform ultrasounds and earn $65,000 per year as a sonographer. The Superior Court, Law Division, Hudson County, entered summary judgment in favor of school. Graduate appealed and school cross-appealed.


Holdings: The Superior Court, Appellate Division, Espinosa, J.A.D., held that:
(1) there was no evidence that technical school's admissions representative knew statements she made at initial interview were false, as required for common law fraud;
(2) statements were not of present or previously existing facts and, therefore, could not provide basis for claim based on common law fraud;
(3) statements were material in action for violation of the CFA; and
(4) learned professional exception to CFA did not apply to technical school.

Affirmed in part and reversed in part.

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What is Eastern International College?


Here are its "gainful employment" disclosures:




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