Charlotte School of Law Class Action Filed Over ABA Noncompliance

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Charlotte School of Law LLC, InfiLaw Holding LLC and InfiLaw Inc. are facing a class action lawsuit accusing them of failing to inform current and prospective law students that CSL did not comply with the American Bar Association’s standards for accreditation.

According to the law school accreditation class action lawsuit, Charlotte School of Law was founded in 2004, and it is a member of the InfiLaw educational management system. InfiLaw is reportedly a consortium of three privately owned for-profit law schools: CSL, Arizona Summit Law School and Florida Coastal School of Law.

Plaintiffs Robert Barchiesi and Lejla Hadzic state that CSL, under the guidance and control of InfiLaw, executed a provisional Program Participation Agreement in February 2009.

This agreement reportedly allowed CSL to participate in student financial assistance programs that were authorized by Title IV of the Higher Education Act of 1965. As a result, CSL students were eligible for federal student loans to help fund their legal education.

However, CSL’s most recent PPA expired in June 2015, the class action lawsuit says. While the application was being evaluated by the U.S. Department of Education, CSL was granted a month-to-month extension, which allowed CSL students continued access to student loans.

However, on Dec. 19, 2016, CSL was reportedly informed that the DOE denied its application for continued participation in Title IV programs, and that CSL’s participation in Title IV programs would end on Dec. 31.

“Due to the DOE’s denial of their application, CSL students will no longer be eligible for federal student loans, including: Federal Work-Study, Federal Perkins Loans, and Federal Direct Loan programs, which include the Federal Direct Unsubsidized Stafford/Ford Loan program and the Federal Direct PLUS Program,” the Charlotte School of Law class action lawsuit asserts.

The plaintiffs argue that CSL had been notified three times in 2016 that it was not in compliance with certain ABA standards. CSL reportedly was required to inform its students about its noncompliance beginning in August 2016.

In November 2016, CSL was reportedly put on probation and was ordered to notify its students about the probationary status as well as the remedial actions it would be required to take to regain its accreditation.

“If CLS had complied with its obligations, then it would have resulted in students not paying CSL tuition on or after August 1, 2016, and Defendants would have incurred substantial financial losses,” the ABA accreditation class action lawsuit states.

Barchiesi and Hadzic enrolled at CSL, fully aware that the law school was a for-profit institution. However, they say they made the decision to enroll at CSL based on the law school’s statements about its accreditation and compliance with ABA standards.

According to the CSL class action lawsuit, they would not have attended the law school during the Fall 2016 semester if they had been informed that CSL was noncompliant with multiple ABA standards. Due to CSL’s refund policy, they were unable to obtain a refund of their tuition and fees paid for the fall semester.

By filing the CSL accreditation class action lawsuit, Barchiesi and Hadzic seek to represent a Class of Charlotte School of Law students who paid tuition and/or fees to attend CSL on or after Aug. 1, 2016. They assert claims for unjust enrichment, breach of fiduciary duty, constructive fraud, and violation of a North Carolina unfair competition law.

The plaintiffs are represented by John Alan Jones, H. Forest Horne, Karl J. Amelchenko, and Steven D. Corriveau of Martin & Jones PLLC and by Gary K. Shipman and Kyle J. Nutt of Shipman & Wright LLP.

The Charlotte School of Law Class Action Lawsuit is Robert C. Barchiesi, et al. v. Charlotte School of Law LLC, et al., Case No. 3:16-cv-00861, in the U.S. District Court for the Western District of North Carolina, Charlotte Division.

UPDATE: On Sept. 11, 2018, former students and the Charlotte School of Law have reached a $2.65 million settlement which would resolve claims that the institution shirked standards for accreditation required by the American Bar Association.

UPDATE 2: November 2018, the Charlotte School of Law class action settlement is now open. Click here to file a claim.