NJ Colleges Don't Owe Tuition Refunds For Sudden COVID Closures, Court Rules

JERSEY CITY, NJ — College students forced into remote learning in the middle of the spring 2020 semester aren't entitled to tuition refunds, a New Jersey appeals court determined. The Dec. 30 ruling affirmed the universities' positions that the executive orders during the COVID-19 emergency shielded the institutions from liability.

Three college students sued their schools — two from Kean University and one who attended Montclair State University — claiming the institutions breached their contracts by switching to remote learning mid-semester, without returning any tuition to students who enrolled in on-campus education.

Kean and MSU suspended in-person learning in March 2020, when the pandemic emerged in New Jersey. During that month, Gov. Phil Murphy declared a public-health emergency and signed several executive orders, including an order for all higher-education institutions to cease in-person instruction.

The schools returned money for on-campus housing and associated costs, court documents stated.

The students — MSU's Colin Keyes and Kean University's Andrew Mueller and Athena Brock-Murray — agreed that their universities had to suspend classes. But they argued that the executive orders didn't prevent their universities from issuing refunds. Separate trial courts sided with the universities, determining that the Emergency Health Powers Act shielded the institutions from liability related to suspending in-person instruction.

The plaintiffs appealed, contending that they "did not choose to attend an online institution of higher learning" and enrolled "for an on-campus, in(-)person curriculum."

The appeals court combined their lawsuits. But the judges affirmed the prior rulings and dismissed the cases.

On March 9, 2020, Murphy declared a public-health emergency. The executive order, among other actions, directed the New Jersey Department of Education to take appropriate actions to "protect the health and well-being of students."

One day later, Kean announced a switch to remote learning, beginning March 16. On the same day, Montclair State extended its spring break and told students that remote education would begin March 23. The universities hadn't held any in-person classes since March 6, 2020.

Murphy issued another executive order March 16, 2020, which ordered all higher-education institutions to cease in-person learning, beginning March 18.

The plaintiffs contended that the closures diminished their education — evidenced by their universities offering online schooling at lower prices before the semester began. But the Emergency Health Powers Act afforded the universities legal immunity when they closed their campuses during the public-health emergency.

"The statute is intended to promote the general health and welfare of New Jersey residents, employees, students, and visitors, thus giving it a 'significant and legitimate public purpose,'" Judge Richard Geiger wrote in the ruling. " ... Immunizing public entities from liability related to their actions in a statewide public health emergency is a key part of the legislative scheme, as it allows these entities to act quickly, efficiently, and fully prepare for and react to such circumstances without fear of litigation consequences."