Update: Le Cordon Bleu Portland/Western Culinary Int. and Career Education Corp case on hold for appeal

From a recent blog comment and email, I realized that we did not update our blog on this case. The Court of Appeals denied our motion to dismiss. As a result, the case is on hold, and the January trial date is off.

The news came while I was in trial on Bixby v. KBR and in the tumult of that case, the need to update readers here fell of my radar. My apologies to all who are waiting for news.

The Court of Appeals’ denial of our motion to dismiss means that we must go through the long process of appeals. My guess is that we’ll have the case briefed and argued this year, but a decision and final return to the trial court might not happen until 2014 or even possibly later.

The appeal is over whether some people in the class–those who signed later enrollment agreements–must go to arbitration. It’s particularly aggravating because approximately half the the class who signed early versions of the enrollment agreement are not impacted by the appeal.

We are disappointed, of course. This early appeal appears to be part of Career Education Corp’s plan of delay. While the case may be delayed, the legal team remains fully engaged and committed. Our day will come.

Please let us know if you have questions. But keep in mind that we don’t provide legal advice via blog comment.

David Sugerman

Efrosinia Martishev says

I am just writing because of my name and address has changed since attending the school. My old name was Efrosinia Kalugin and my new name is Efrosinia Martishev, and my new address is 810 Pana street, Woodburn OR 97071.

Thank you for all your doing!

Bethany Diaz says

Thank you for the update! How does one find out if they signed the early agreement? Also, if I signed it, does that mean that if the case goes in our favor, I'm exempt from getting anything from the win? I don't think I signed it, but who knows.


Jameela Schacht says

Whenever a trial date actually happens, with no more delays possible, then an out of court settlement is always likely, at the 11th hour, to avoid the trial. Such settlements often include a denial of wrongdoing by the defendant. How would such a denial likely affect the argument against Sallie Mae, that debts incurred by fraud are not collectible? Also, if some of us end up in arbitration, is it likely that an arbitrated settlement would also stipulate no wrongdoing? I know you can't offer any definitive statments on this, I'm only asking for opinions and probabilities.

Thanks for all your help,

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