Court: Michigan universities didn't have to give students tuition, housing refunds

Students walk through Lake Superior State University during a move-in day for students at Lake Superior State University in Sault Ste. Marie located in Michigan's Upper Peninsula on Wednesday, Aug. 5, 2020.
Students walk through Lake Superior State University during a move-in day for students at Lake Superior State University in Sault Ste. Marie located in Michigan's Upper Peninsula on Wednesday, Aug. 5, 2020.

Michigan public universities didn't have to pay refunds to students after forcing them into remote learning during the early days of the COVID-19 pandemic, the Michigan Court of Appeals said Thursday in a ruling upholding the Michigan Court of Claims.

"The tuition contracts assessed fees as the result of registration, not as the result of receiving services," the court said in its decision upholding lower courts that dismissed lawsuits filed in the court of claims asking for compensation. "We find no error in the trial court’s conclusion that unambiguous terms of the tuition contract rendered students liable for paying tuition once they registered for classes.

"In all cases consolidated on appeal, The University plaintiffs claim the University defendants breached their agreements by failing to provide live, in-person instruction. The University plaintiffs, however, have pointed to no contractual language in which the University defendants promised such method of instruction."

The decision was made by a three-judge panel. Judges Kirsten Frank Kelly and James Robert Redford wrote the main decision. Judge Brock Swartzle wrote a separate opinion agreeing with part of the decision and disagreeing with other parts.

More: Schlissel dragged feet on independent oversight of sexual misconduct at U-M, sources say

More: 8 former students sue U-M over sexual misconduct claims against music lecturer

The ruling consolidated three cases filed against Eastern Michigan University, Central Michigan University and Lake Superior State University. In all the cases, a student argued that he or she should have gotten refunds when their classes went virtual and students were sent home from campus.

Swartzle had a different take on tuition, writing he believed the students should be allowed to continue their suit.

"In the end, there is a growing body of evidence, including evidence in this record, that students of all ages suffered significant educational setbacks during the winter/spring 2020 semester, and possibly beyond," he wrote. "It adds insult to injury for a university student to have to pay full price for emergency remote teaching when that student allegedly bargained for much different educational services. As I review the record, there remains a genuine issue of material fact on plaintiffs’ tuition claims. The parties should have the opportunity for full discovery, followed by a trial if a question of fact remains."

The court also sided with the universities when it came to housing refunds.

It said at each university, the housing contract had specific clauses in it that allowed for the university to not give refunds. For example, at Lake Superior State, the housing contract said the contract could be voided for an "act of nature" or an "act of God."

"In other words, these contracts expressly contemplated circumstances under which it is necessary to remove students from housing for reasons of health, safety, and welfare."

In March 2020, all public universities sent students home as COVID-19 spread. Classes continued, but online only instead of in-person. No public universities gave refunds for tuition. Some gave refunds for meal plans or housing contracts that were unused.

Contact David Jesse: 313-222-8851 or djesse@freepress.com. Follow him on Twitter: @reporterdavidj. Subscribe to the Detroit Free Press.

This article originally appeared on Detroit Free Press: Court: Michigan universities don't have to give refunds