Jude Gillespie et al v. Kaplan University et al

Filing 337

ORDER denying 316 Motion for Reconsideration re 314 Order on Motion to Dismiss, Order on Motion for Judgment on the Pleadings, 315 Order on Sealed Motion ; granting 316 Motion for Clarification of same; Third Amended Complaint due 10/31/2012. Signed by Judge Patricia A. Seitz on 10/17/2012. (ls)

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ORDER DENYI M O TI N FQR RECONSI
NG
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DEM TI AND GRANTI M OTI
ON
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ON
FOR CLA RIFICA TI N
O

THI QUlTAM a tonli bef et Cour ont motons Fis i ReaorJ Gil pi s
S
ci s or he
t wo i . rt s lt ude les e'

Moton f Re nsdeai a / Clrfc ton g 3l a s c i Gil pi s Moton f
i or co i rton ndor aiiai DE- 61 nd e ond s les e'
i or
Ex e i n ofTi e t Com pl W ih Cou tsM ay 21 201 O r on Re lorJ G il s e' M oton
t ns o
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y t
r'
, 2 der
a t ude le pi s
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f Le e t Amen g 31 J Gil pi seksr c i rto orcarfc ton ofs r Co t
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de s whi h e le s r nc it nt s nta l G le pi s r ng o t r ne he c
he

cam st thema s touti hi Thid Ame d Compl i and t e e tt whih t Cour ha
li ha
y e
n s r
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ant
he xt n o c he
t s
a r a de i d a na r e hi cl m st ough pr oror e s
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i
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ton o s s DE31 ,t Cour' M a 2l 201 Or rGrntngi PatMotonf Le vet Ame g 31 ,a
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endant m ade f se cl m s t t
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al ai o he
U nie St t sw he t y c r ii d,i or rt r c ve f de a sude fnanc a a d f
td a e
n he e tfe n de o e ei e r l t nt i i l i unds t att y
, h he
we e i c m pla e w ih t Re biia i A c .
r n o i nc t he ha lt ton t

2n t s Or r t e Cou tno e t tby proror er Gil pi s c ai sha be n lm ied t
I hi de , h
r t d ha
i d , les e' l m
ve e i t o
t tm e f a e co r ng up untlt O CR f
he i r m
ve i
i he
ound Def nda si c pla e w ih t Re biia i n
e nt n om i nc t he ha lt to
Ac . Se D E- 4 a 4. l a f not t Cour f r he s a e t ti w oul a arf om do m e t
t e
31 t n oot e, he
t u t r t t d ha t
d ppe r
cu n s
fl d w ih t e Cour t tt O CR m a isfndi ofc pla no l t t n M a 24,
ie t h
t ha he
de t i ng
om i nce a er ha
y 2007.Se
e

t Cour' Ma 1 201 Or rGrntngi PatMotonst Ta J cal ie( 31 . The e
he
ts y 4, 2 de a i n r i o ke udii Notc DE- 2)4 s

Or esmu tb ra i c nu cin wi teCo r' Au u t1 , 0l Or e Grnig i Pa t n
d r s e ed n oj n t
o t h u ts g s 7 2 1 d r a tn n r a d
h
De ng i Pa tMoto t Dimis ( 262) W hie Gils e a srs t tt s Or s ae
nyi n r
in o s s DE- .
l le pi se t ha hee der r
i co pa i e,i r a iy,G il pi i s e n t br de hi c a m s be
n m tbl n e lt
les e s e ki g o oa n s l i
yond t c nfne pr vi l
he o i s e ous y

esa ihe byt Cour.TheCou t l notal hi t dot s Howe r be us t Cour t
tbls d he
t
r wil
low m o hi.
ve , ca e he
t ook

j dca n tc o fcst ti s i t ti wo dn tc n ie a tu , h M oinf rClrfc to i
u iil oie f a t ha t ad ha t ul o o sd r s r e t e to o aiiain s
grnt d.Gils es l fl hi Thid Ame d Compl n by Ocobe 31 201
a e
le pi hal ie s r
nde
ait
t r , 2.

l t Or rGrntng i Pa ta De ng i Pa tMoto t Dimisg 262J t Cou t
n he de a i n r nd nyi n r
in o s s DE- ,he r
f
ound t tGils eha a quael pld hi Reha lt ton Ac cl msbu onl t ough t poi i
ha le pi d de t y e s
biiai
t ai
t y hr
he nt n
tm e w he OCR f nd t tK a a Uni r iy w a i c pla e wih t Res uton Agr e e .
i
n
ou ha pl n
ve st s n om i nc t he ol i
e m nt
Thus t Cour or r d De e nt t fl a a wert G il s e' cl i sba e on t Re biia i
, he
t de e
f nda s o ie n ns
o le pi s a m
s d he ha lt ton

Ac . The e fer Gils e s tl a t fl aThid Amende Compl itt c a iy hi exitng
t
r a t , le pi ough e ve o ie
r
d
an o l rf s si
Re biia i A c c ai sa t c a iy t tm e pe i t tDef nd t w e e noti c pla e wih
ha lt ton t l m nd o l rf he i
rod ha
e an s r
n om i nc t

i a n.
d. t 6.
3- sOr ralo sae t tGil pi sRe biiai Ac cli we elmie t t tme
rhi de s t td ha les e' ha lt ton t ams r i td o he i
l
fa ec
r m overng u untlO CR f nd De e n si c pla e w ih t Re biia i A c . I t s
i p i
ou
f nda t n om i nc t he ha lt ton t n hi
Or r t Coul f d t atGil pi ha f ie t pla wih s c fct a vi a i oft
de , he
' oun h
t
les e d a ld o e d t pe ii iy ny oltons he
Re biia i Ac s cfct De e n sKa a I orKa a Hihe Edu ton Cor Se DEha ltton t pe ii o f nda t pln, nc.
pl n g r ca i
p. e
31 a 6.Th ,t Or rc l d t tt onl vi ai oft Re biia i Ac pld wih
5 t
us he de oncude ha he y oltons he ha ltton t e t
s ciiiy we et vi atonsofKa a Unier iy,whih we es touti t OCR lterr s tng
pe fct r he ol i
pln v st
c
r e
n he
e t e uli
f om OCR ' i vesi ton ofG il s e' O CR c pl i .
r
S n tga i
le pi s
om a nt

4nt sOr r t Cour sae t ti woul tkej diiln ieo svea doc ns
I hi de,he
t ttd ha t d a u ca otc f e rl ume t
s bm itd by G il pi a D e e nt ,i l ng a m onio i l terfom O CR da ed M a 24,
u te
les e nd f nda s nc udi
t r ng e t r
t
y
2007. How e r t Cour s a e t ti woul c i rt e s e e oft l te bu woul not
ve , he
t t t d ha t
d ons de he xit nc
he e tr t
d
a s e t tut o t m a tr as e t d t r i The M a 24,2007 OCR l te s a ed t tKapl n
s um he r h f he te s s r e he e n.
y
e t r t t ha
a
Uni r iy ha c ple w ih al as c soft Re ol ton Agr e e t tha be n e e e i o
ve st d om i d t l pe t
he s u i
e m nt ha d e nt r d nt
by K a a Uni r iy a OCR a t rO CR ha f
pl n
ve st nd
fe
d ound Ka a noti c pla e w ih c r a n
pl n
n om i nc t e t i
a pec soft Reh biia i A c .
s t he
a lt ton t

t Re lt ton A c . Def nda t oppos d a a t m ptb Gil s e t a t t tm e f a e oft
he habiia i
t
e ns
e ny te
y le pi o ler he i r m
he
a l e vi a i oft Re lt ton A c .l isO r rG r ntng i Pa t oton f Le vet A m e
leg d ol tons he habiia i
t n t de a i n r M i or a o
nd

( 31 ,heCour f tatGils e' pr e ThidAmende Compli fiedt stoutwih
DE- 5Jt
tound h lepi s opos d r
d
ant al o e
t
pa tcul rt a c ntnui vi a i of t Re biia i n A c . Thus t Or r lm ie a
ri a iy ny o i ng ol tons
he ha lt to
t
, he de i t d ny
a e e oft c pl i t t Re biia i A c vi a i pr vi l pl d,whi h end d w he
m ndm nt he om a nt o he ha lt ton t ol tons e ous y e
c
e
n
t O CR f
he
ound Kapl Uni st i complance w ih t Res uton Agr ent
an ver iy n
i
t he ol i
eem .

Conta y t Gil s e' c a m s t eCour ' Or r a enot nc i t nt A l oft Cour O r r
r l o le pi s l i , h
ts de s r
i onss e . 1 he
t de s

sae t s me t ng - Gil pi scli b e on Re ltton Ac vi a i ar lm ie t t
tt he a hi
les e' a ms as d
habiia i
t oltons e i td o he
vi a i f
oltons ound b OCR a e whe OCR f
y
nd nd
n
ound Ka a Uni r iy i c
pln
ve st n ompla e wih t
inc t he
Re ol ton Agr e e a h ce t Re biia i Ac . The e lm ia i a ebas d on G il pi s
s ui
e m nt nd, en , he ha lt ton t
s i t tons r
e
les e'

own pl di i t Se ond Ame
ea ng n he c
nded Compli a hi pr e Thid Ame d Co pli .
ant nd s opos d r
nde
m ant

Be aus hi camsmus compl wih t rquie t ofFed r lRul ofCi lPr e e 9b)
c e s li
t
y t he e rmens
ea e
vi oc dur ( ,
Gil s e' c ai sand t i tm e fam e a e lm ie t t pa tc arz a l ga i t a Gil s e h
le pi s l m
he r i r
r i t d o he ri ul i ed le tons h t le pi as
s to .TheCou t sr pe t dl he d t tG il s eha onl pl d w ih pa tc a iyt Re biia i
e ut
r ha e a e y l ha le pi s y e t ri ul rt he ha lt ton
A c vi a i f
t ol tons ound by O CR a t a t ec ai se w he O CR fndst t he vi a i h be
nd h t hos l m nd
n
i ha t
ol tons ave en
r m e e w hi h i t s m e a tndi t atKa a U ni er iy i i c plan w ih t Res u i
e di d, c s he a
s i ng h
pl n
v st s n om i ce t he ol ton
Agr ent
eem .

Gil s e i, e r c r t ha t Cou t sa s e t t u h oft m a t ra s re i t
le pi s how ve , orec t t he
r ha s um d he r t
he te s e td n he
M a 24,2007 O CR l te ,whi h sa e t t Ka a Uni r iy ha c m pled w ih t Res u i
y
e tr
c t t d ha pl n
ve s t d o i
t he ol ton

Agre nttusc ta ci isownOr rrgadi udii notc Bec us t Cour saedt t
e me ,h onrditng t
de e r ngj cal ie. a e he
ttt ha
i w oul notas um et t ut oft m a tr a s re i t M a 2 2007 O CR l t , he Co t s
t
d
s
he r h he te s s e td n he y 4,
eter t
ur doe

notc l de t tDe en t we e i co pla e wih t Reh lt ton Ac a oft dae oft t
onc u ha f dan s r n m inc t he
abiiai
t s he t
ha

lte.W hiea t s
etr
l the ummayj me sa t tl trma beus dt s
r udg nt tge ha ete y
e o uppor s hac l i a
t uc oncuson, t

t s pr e a poi i t c e,e s nta l t m oton t dim i ss ag i i nota opra e f t
hi oc dur l nt n he as s e i ly he
i o s s t e, t s
ppr i t or he
Cour t co u t t hel t ri a c a e A c or ngl Pl i if sm oton f cl r fc ton i g a e
t o ncl de ha t ete s c ur t . c di y, a ntf '
i or a ii a i s r nt d.

TheCour clrfesisprorOr r a f l ; le pi scl msr g di t Re biia i Ac e
t a ii t i de s s olows Gils e' ai e ar ng he ha ltton t nd
asoft tm ew he Def nda swe e i c planc w ih t Res u i Agr e e .Be a et onl
he i
n e nt r n om i e t he ol ton
e m nt c us he y

is es of nonsu
compla e we e add es e i t e Re olton Agr e nt onc t Re ol i
inc
r
r sd n h
s ui
e me , e he s uton
A gr em e ha be n f l c ple wih,t Reha lt ton A c ha al o be n f l co ple w ih by
e nt s e uly om i d t he
biia i
t s s e uly m i d t
D ef
endant However,t Courtdoesnotm ake any fndi att sst oft ltgaton ast when
s.
he
i ngs hi age he ii i
o

t e D e e dan swer i f l c pla ew ih t Re ol ton Ag e m en a he e t Re biia i
h
fn t
e n u l om i nc t he s u i
r e t nd, nc , he ha lt ton
Act
.

Accor ngl i i
di y, t s
ORD ERED t :
hat

Reao J e Gil pi sMoto f Re onsdeai an orClrfc tc ( 31 Ji
ltr ud les e'
in or c i rton d/ a iiaim DE- 6 s
GRANTED i pa t DENI i pa t
n r and
ED n r.
a. Th M oton f rRe ns de a i i DEN I .
e
i o co i r ton s
ED

b.TheM oton f Clrfcai i GRAN TED a s touth r n.
i or a ii ton s
se
e ei
2.G il s e' M o i f Ext ns on ofTi et Com pl W ih Cour ' M a 21 20 1 O r ron
le pi s ton or e i
m o
y t
ts y , 2 de

Re t J deGil pi sM otonf Le vet Ame d ( 31 Ji GRANTED.Gil pi s ltl hi
alor u
les e' i or a o
n DE- 7 s
les e halie s
Thid Am ended Com pl ntby O ct
r
ai
ober31,2012.

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