2/10/2020 1:34 PM

20CV07190

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IN THE CIRCUIT COURT FOR THE STATE OF OREGON
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FOR MULTNOMAH COUNTY
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Case No.
7 WILLIAM SPAULDING
individually and on behalf CLASS ACTION
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of other similarly situated COMPLAINT FOR
9 Concordia University students EQUITABLE RELIEF

10 Plaintiff Unlawful Trade Practices

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Unjust Enrichment
vs
12 Jury Trial Requested
CONCORDIA UNIVERSITY Filing Fee Authority: ORS 21.135
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Not Subject to Mandatory Arbitration
14 Defendant

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1.
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INTRODUCTION

19 Concordia University misled hundreds of students about its financial

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condition, and collected tuition in 2020 that students would not have paid had the
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students known the truth about Concordia University’s looming closure. Now many
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23 Concordia University students are left unable to graduate and with credits that

24 cannot be directly transferred for credits of equal value at a different university.

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Any student affected by Concordia University’s unlawful trade practices may
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contact UnderdogLawyer.com or call 503-222-2000 to file a claim for a refund of their
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28 2020 tuition.

CLASS ACTION COMPLAINT – Page 1 of 8

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2 2.
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FACTUAL ALLEGATIONS
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The Circuit Court for the County of Multnomah in Oregon has jurisdiction
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6 because the behavior alleged in this complaint took place in and around Multnomah

7 County and because plaintiff’s claim arises under the Oregon Unlawful Trade
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Practices Act, ORS 646.638.
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3.
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11 This complaint’s allegations are based on personal knowledge as to plaintiff’s

12 own behavior and are made on information and belief as to the behavior of others.
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4.
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Plaintiff is a “person” as that term is defined at ORS 646.605(4).
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16 5.
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Concordia University does regular and sustained business in Oregon and is
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registered with the Oregon Secretary of State.
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6.

21 Concordia University is a “person” as that term is defined at ORS 646.605(4).

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7.
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Concordia University regularly advertised and sold educational services and
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25 tuition credits to current and prospective students in the course of its business.

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CLASS ACTION COMPLAINT – Page 2 of 8

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2 8.
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Throughout late 2019 and early 2020 Concordia University advertised and
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sold educational services and tuition credits to plaintiff and other class members to
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6 be used primarily for their personal, family or household purposes. Concordia

7 University advertised itself as a Christian University preparing leaders for the

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transformation of society. Concordia University represented itself to prospective and
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current students as being known for academic excellence as a premier, private
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11 university. Concordia University said that by 2024 “all students of Concordia

12 University-Portland will be actively engaged in a university that enjoys a strong

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national reputation in select programs preparing leaders for the transformation of
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society through educational experiences grounded in relationships and centered in
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16 servant leadership, rigor, and Lutheran identity and values.” Relying on Concordia
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University’s advertisements and representations, plaintiff paid Concordia
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University thousands of dollars for educational services and tuition credits in 2020.
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9.

21 On February 10, 2020 Concordia University admitted to its students for the
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first time that the University was experiencing declining enrollment and financial
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worries and that “finances make it impossible to continue its educational mission”.
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25 Upon information and belief, the high-paid executives at Concordia University knew

26 since 2019 that the University was in dire financial condition and that the
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University’s closure in 2020 was looming.
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CLASS ACTION COMPLAINT – Page 3 of 8

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2 10.
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As alleged in this complaint, Concordia University misrepresented the
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qualities and characteristics of its education services and the value of its tuition
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6 credits to plaintiff and other class members, including misrepresentations by

7 omission. As a result, plaintiff and other class members received education services
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and tuition credits worth less than they would have been worth had Concordia
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University’s representations (including misrepresentations by omission) about its
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11 financial condition been accurate. Plaintiff and other class members would not have

12 paid Concordia University for 2020 tuition credits had they know that the
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University’s closure was looming, leaving them without the ability to graduate and
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with credits, at least a portion of which would not directly transfer to another
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16 university.
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11.
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Concordia University’s behavior as alleged in this complaint willfully and
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recklessly violated ORS 646.608(1) (e), (g), and (t) causing plaintiff and other class

21 members ascertainable loss.

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CLASS ACTION COMPLAINT – Page 4 of 8

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2 12.
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CAUSES OF ACTION
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Claim One – Unlawful Trade Practices
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6 This claim is not a request for damages at this time, only equitable and

7 injunctive relief. Plaintiff and the other class members intend to request damages in
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an amended complaint. As alleged in this complaint, Concordia University’s
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behavior willfully and recklessly violated ORS 646.608, causing plaintiff and other
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11 class members an ascertainable loss. Under ORS 646.638 plaintiff requests an order

12 requiring Concordia University to provide an accounting of the profits it received

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from collecting tuition in 2020, fees, costs, disbursements, and an order requiring
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Concordia University to preserve all documents and information (and electronically
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16 stored information) pertaining to this case.

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CLASS ACTION COMPLAINT – Page 5 of 8

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2 13.
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Claim Two – Unjust Enrichment
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This claim is not a request for damages at this time, only equitable and
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6 injunctive relief. As alleged in this complaint, Concordia University operated a

7 common scheme to profit by misleading students about its financial condition. As a

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matter of justice and equity, Concordia University should not be able to retain the
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unlawful profits it received from the 2020 tuition dollars it collected from plaintiff
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11 and the other class members. Under a theory of unjust enrichment, plaintiff requests

12 an order requiring Concordia University to provide an accounting of the profits it

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received from collecting tuition in 2020, fees, costs, disbursements, and an order
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requiring Concordia University to preserve all documents and information (and
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16 electronically stored information) pertaining to this case.

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14.
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REQUEST FOR JURY TRIAL
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Plaintiff respectfully requests a trial by a jury.

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CLASS ACTION COMPLAINT – Page 6 of 8

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PRAYER FOR RELIEF
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Plaintiff respectfully requests relief against Concordia University as sought
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6 above, and any other relief the Court may deem appropriate, and an order appointing

7 class counsel and an order certifying this case as a class action. Plaintiff reserves
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and right and may intend to amend this complaint to bring a claim against Concordia
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University and its executives for punitive damages.
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February 10, 2020
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RESPECTFULLY FILED,
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s/ Michael Fuller
15
Michael Fuller, OSB No. 09357
16 Lead Trial Attorney for Plaintiff
OlsenDaines
17
US Bancorp Tower
18 111 SW 5th Ave., Suite 3150
Portland, Oregon 97204
19 michael@underdoglawyer.com
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Direct 503-222-2000

21
Ron K. Cheng, OSB No. 142955
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Of Attorneys for Plaintiff
23 Kaplan Law LLC
ron@mdkaplanlaw.com
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25
Kelly Jones, OSB No. 074217
26 Of Attorneys for Plaintiff
The Law Office of Kelly Jones
27 kellydonovanjones@gmail.com
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CLASS ACTION COMPLAINT – Page 7 of 8

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2 CERTIFICATE OF SERVICE
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I certify that I cause this document to be served on:
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5 State of Oregon
6 c/o Oregon Department of Justice
1162 Court St. NE
7 Salem, Oregon 97301-4096
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9 February 10, 2020

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11 /s/ Michael Fuller

Michael Fuller, OSB No. 09357
12 Lead Attorney for Plaintiff
13
OlsenDaines
US Bancorp Tower
14 111 SW 5th Ave., Suite 3150
Portland, Oregon 97204
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michael@underdoglawyer.com
16 Direct 503-222-2000
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CLASS ACTION COMPLAINT – Page 8 of 8