Something that is lending to the current cost disease in higher education is the number of lawsuits being brought against higher education institutions by students, faculty, and the public. The Chronicle of Higher Education highlighted a lawsuit brought about by students against Westwood College, a for-profit institution, claiming that the institution “flourished in the unscrupulous culture of the for-profit college industry” (Blumenstyk, 2010, para. 1). The claim is that officials of the institution “follow a simple formula: Recruit those with the greatest financial need and enroll them in high-cost institutions to maximize the amount of federal funding” (Blumenstyk, 2010, para 2).
On the homepage of the National Association of College and University Attorneys, there are many summary judgments on cases in higher education around the country today. One of the cases on the homepage is Van Heerding v. Louisiana State University et al. for violation of a faculty members First Amendment rights. This case is just one of many that can be seen.
In an article in the Pittsburgh Post-Gazette on June 7, 2009, that due to the Pennsylvania’s Right-To-Know Law, schools had to report to PA Open Records Office and file an annual Internal Revenue Service Form 990. It is found that Penn State spent approximately $3.5-million on legal fees in 2007-2008 and the University of Pittsburgh spent $8 million in legal fees in that same time frame (Schnacker, 2009). These fees are just a glimpse of the overall picture of the impact legal issues and fees have on higher education, and yet not spending this money could result in even higher payouts in the long run.
Blumenstyk, G. (2010, August). In lawsuits, former students accuse Westwood College of widespread deception. The Chronicle of Higher Education. Retrieved from http://chronicle.com/article/Former-Students-Accuse/123882/
National Association of College and University attorneys. (2011). Retrieved from http://www.nacua.org/
Schnacker, B. (2009, June 7). Revised law offers glimpse into college spending. Pittsburgh Post-Gazette. Retrieved from http://www.post-gazette.com/pg/09158/975707-298.stm
It’s amazing how these cases are often not public or we just are not paying attention to the daily trail logs. Unfortunately any customer service entity or individual is open for a lawsuit at this day and time. I don't see this going away, but I do foresee the cost of insurance going up.
ReplyDeleteOur beloved University just had a 2005 case to got to jury—which awarded the plaintiff $4 million. Wow--another cost disease, if the insurance company doesn't catch that cost.
Injured University of Memphis art student wins $4 million Judgment
http://www.commercialappeal.com/news/2011/oct/29/injured-art-student-wins-4m-judgment/