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HomeMy WebLinkAbout13-2263 Supreme CourCUTennsylvania COUI'tOf COmmOn+�P1eaS For Prothonotary Use Only: Clv,><1'Cover,Shoet � I \ rI ; c Docket No: 1. Curii6erland° County 13 The information collected on this form is used solely for court administration purposes. This form does not supplement or replace the filing and service of pleadings or other papers as required by law or rules of court. Commencement of Action: S 0 Complaint 0 Writ of Summons - Petition E J Transfer from Another Jurisdiction Declaration of Taking C Lead Plaintiff's Name: Lead Defendant's Name: T Charlotte Masland Dobbs Delta Career Education Corporation Dollar Amount Requested: Owithin arbitration limits I Are money damages requested? Yes No (check one) outside arbitration limits O N Is this a Class Action Suit? M Yes ER No Is this an MDJAppeal? 0 Yes 0 No A Name of Plaintiff /Appellant's Attorney: Wayne F. Shade, Esquire 0 Check here if you have no attorney (are a Self- Represented (Pro Se] Litigant) Nature of the Case Place an "X" to the left of the ONE case category that most accurately describes your PRIMARY CASE. If you are making more than one type of claim, check the one that you consider most important. TORT (do not include Mass Tort) CONTRACT (do not include Judgments) CIVIL APPEALS 0 Intentional l Buyer Plaintiff Administrative Agencies 0 Malicious Prosecution 0 Debt Collection: Credit Card 0 Board of Assessment 0 Motor Vehicle 0 Debt Collection: Other 0 Board of Elections 0 Nuisance Dept. of Transportation 0 Premises Liability Statutory Appeal: Other S 0 Product Liability (does not include E mass tort) 0 Employment Dispute: 0 Slander/Libel/ Defamation Discrimination C 0 Other: 0 Employment Dispute: Other Ci Zoning Board T 0 Other: I xi Other: O MASS TORT Breach of contract 0 Asbestos N - Tobacco 0 Toxic Tort - DES 0 Toxic Tort - Implant REAL PROPERTY MISCELLANEOUS 0 Toxic Waste Ejectment 0 Other: 0 EJ 0 Common Law /Statutory Arbitration B 0 Eminent Domain /Condemnation 0 Declaratory Judgment h Ground Rent 0 Mandamus 0 Landlord /Tenant Dispute 0 Non- Domestic Relations 0 Mortgage Foreclosure: Residential Restraining Order PROFESSIONAL LIABILITY - Quo Warranto 0 Mortgage Foreclosure: Commercial 0 0 Dental 0 Partition (] Replevin f_ Legal 0 Quiet Title ® Other: CI Medical 0 Other: 0 Other Professional: Updated 1/1/2011 w , CHARLOTTE MASLAND DOBBS, : IN�THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION —LAW V. DELTA CAREER EDUCATION : NO. 2013 - b 3 CIVIL TWN ,' CORPORATION, = 4.0 trading and doing business as rncp :X_ McCANN SCHOOL OF BUSINESS: N, & TECHNOLOGY, and -< � c.n C STEVEN CARNAHAN, II, {a ,,. = Defendants JURY TRIAL DEMANDED � � 4 � r f-g NOTICE - LA r < You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim of relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 Telephone: (717) 249 -3166 i Wayne . Shade, Esquire Supreme Court No. 15712 53 West Pomfret Street Carlisle, Pennsylvania 17013 Telephone: 717- 243 -0220 0 7sp Attorney for Plaintiff Cjc,-44 4/ f �1� 3� S CHARLOTTE MASLAND DOBBS,: IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION —LAW V. DELTA CAREER EDUCATION : NO. 2013 - a �, 3 CIVIL TERM CORPORATION, trading and doing business as McCANN SCHOOL OF BUSINESS & TECHNOLOGY, and STEVEN CARNAHAN, II, Defendants : JURY TRIAL DEMANDED COMPLAINT AND NOW, comes Plaintiff CHARLOTTE MASLAND DOBBS by her attorney, Wayne F. Shade, Esquire, and respectfully represents, as follows: 1. Plaintiff, CHARLOTTE MASLAND DOBBS, is an adult individual who resides at 15 Brian Drive, Carlisle, Cumberland County, Pennsylvania 17015. 2. Defendant, DELTA CAREER EDUCATION CORPORATION (hereinafter "DELTA "), is a corporation that Plaintiff believes and therefore avers is a corporation of the Commonwealth of Virginia and that, at all times pertinent hereto, has been trading and doing business as McCANN SCHOOL OF BUSINESS & TECHNOLOGY (hereinafter "McCANN "), with offices at 346 York Road, Carlisle, Cumberland County, Pennsylvania 17013. 3. Defendant, STEVEN CARNAHAN, II (hereinafter "CARNAHAN "), is an adult individual whose last known address is Capital Surgery & Laser Center, 10 Capital Drive, Harrisburg, Pennsylvania 17110, and who at times pertinent hereto worked at McCANN. 4. Plaintiff believes and therefore avers that, at times pertinent hereto, CARNAHAN was an agent, servant, or employee of McCANN. .5. Plaintiff believes and therefore avers that, at times pertinent hereto, CARNAHAN was the director of the surgical technology program at the Carlisle, Pennsylvania, campus of McCANN (hereinafter "Carlisle "). 6. At all times pertinent hereto, McCANN has been a for - profit educational institution offering educational courses and degrees to students in various educational fields, including an Associate of Applied Science degree in surgical technology. 7. In August of 2010, McCANN represented that, after completing the surgical technology program, Plaintiff would be qualified for a career as a member of an operating room team, working with surgeons, anesthesiologists, registered nurses, and other surgical team members. 8. In August of 2010, McCANN publicly promoted itself as focusing on the latest courses and the personal success of each and every one of its students. 9. In August of 2010, McCANN publicly offered degrees and diplomas leading to long -term sustainable careers for its graduates for the stated reason that the marketplace demands it. 10. In August of 2010, McCANN publicly promoted words to the effect that, if quality is what you want then McCann is where you want to be. 11. In August of 2010, McCANN publicly stated that its students would be part of a team that would be there each step of the way. -2- 12. In August of 2010, McCANN publicly stated that the students at McCann could count on innovative technology, experienced instructors, engaging classes, and pioneering techniques. 13. In August of 2010, McCANN publicly stated that each McCANN school, including the Carlisle campus, was accredited by the Accrediting Council for Independent Colleges and Schools. 14. When Plaintiff submitted her application for admission to McCANN, she was told by the representative of McCANN who took her application that the surgical technology program was fully accredited. 15. In reliance upon the representations of the authorized representatives of McCANN, Plaintiff submitted an application for admission to the surgical technology program at Carlisle on August 30, 2010, a true and correct copy of which is attached hereto and incorporated herein by reference as Exhibit "A ". 16. During her studies at McCANN Plaintiff and her classmates were informed by CARNAHAN that, in order to meet the demands of the marketplace in the field of surgical technology, it would be necessary for graduates of the surgical technology program to be certified by the National Board of Surgical Technology and Surgical Assisting (hereinafter the "NBSTSA "). 17. During her studies at McCANN Plaintiff and her classmates were informed by CARNAHAN that, in order for the graduates of the surgical technology program at McCANN to be eligible to sit for the NBSTSA certification examination, it would be necessary for the surgical technology program at McCANN to be accredited by the -3- Commission on Accreditation of Allied Health Education Programs (hereinafter the "CAAHEP "). 18. Plaintiff believes and therefore avers that, when Plaintiff submitted her application for admission to McCANN, the surgical technology program at one or more of the campuses of McCANN other than the Carlisle campus was accredited by the CAAHEP so that McCANN knew that CAAHEP accreditation was required and what was necessary to attain it. 19. At no time prior to her enrollment at McCANN did anyone on behalf of McCANN inform Plaintiff that the demands of the marketplace would require that she be certified as a surgical technologist or surgical assistant by NBSTSA. 20. At no time prior to her enrollment at McCANN did anyone on behalf of McCANN inform Plaintiff that the surgical technology program at Carlisle did not have the accreditation that she would need in order to be eligible to sit for the NBST.SA examination upon her graduation. 21. When CARNAHAN informed Plaintiff and her classmates that they would need to be certified as surgical technologists by the NBSTSA, he also informed them that the surgical technology program in which they were enrolled at McCANN was not accredited by CAAHEP. 22. When CARNAHAN informed Plaintiff and her classmates that the McCANN surgical technology program at Carlisle was not accredited by CAAHEP, he assured them that the program would become accredited by CAAHEP and that their degrees would be accredited by CAAHEP. -4- 23. CARNAHAN continued to repeatedly assure Plaintiff and her classmates that the program would be accredited by CAAHEP and that their degrees would be accredited by CAAHEP. 24. Shortly prior to her graduation from the McCANN surgical technology program at Carlisle, Plaintiff and her classmates were informed by CARNAHAN that the program would be accredited by October of 2012 and that their degrees would be accredited by CAAHEP. 25. On the September 26, 2012, graduation day, CARNAHAN informed Plaintiff and her classmates that the program would not be receiving accreditation from CAAHEP until March of 2013 at the earliest. 26. When Plaintiff and her classmates were informed on graduation day that the McCANN surgical technology program at Carlisle had not received accreditation from CAAHEP, there was no indication that any future accreditation would apply to their degrees. 27. Plaintiff believes and therefore avers that, if the surgical technology program at Carlisle does receive CAAHEP accreditation, it will not apply to her degree. 28. As of the date of filing of this Complaint, Plaintiff has received no information from McCANN, or from any other source, that her McCANN degree in surgical technology has been accredited by CAAHEP. 29. After Plaintiff's graduation from McCANN, CARNAHAN informed Plaintiff that CARNAHAN had tendered his resignation from McCANN due to "poor management" at McCANN. -5- 30. Since Plaintiff filed her application for admission on August 30, 2010, and continuing to the date of filing of this complaint, McCANN has continued to promote its surgical technology program with full knowledge that it is not accredited by CAAHEP as needed by the graduates for the reasons averred herein. 31. Where Plaintiff's degree in surgical technology is not accredited by CAAHEP, Plaintiff is ineligible to sit for the NBSTSA certification examination. 32. Because medical providers require surgical technologists or surgical assistants to be certified by the NBSTSA as a condition of employment, Plaintiff is unable to meet the requirements of the NBSTSA to sit for its examination because she is not certified by the NBSTSA, and she is unable to become certified by the NBSTSA because she cannot meet the requirements to sit for the NBSTSA certification examination. 33. The scope of the arbitration provisions of the application for admission encompasses only disputes arising out of or relating to the admission application, student enrollment, and student attendance at McCANN. 34. Issues concerning the eligibility of graduates to meet the demands of the marketplace for NBSTSA certification of graduates are not mentioned among the many issues that are expressly addressed in the application for admission. COUNT BREACH OF CONTRACT 35. The averments of ¶¶ 1 through 34 above inclusive are incorporated herein as though fully set forth. -6- 36. McCANN breached the agreement between the parties by continuing to accept thousands of dollars in payments from Plaintiff and encouraging Plaintiff to continue devoting her time and efforts to her studies without satisfying its representations that it would prepare Plaintiff to meet the demands of the marketplace as a surgical technologist or surgical assistant which included providing her with a CAAHEP certified degree that would entitle her to sit for the NBSTSA certification examination. 37. The failure of McCANN to provide Plaintiff with an education that would prepare Plaintiff to meet the demands of the marketplace as a surgical technologist including providing her with a CAAHEP certified degree that would entitle her to sit for the NBSTSA certification examination was a material breach of the agreement between Plaintiff and McCANN. 38. As a result of McCANN' S breach of contract, Plaintiff has suffered substantial damages including, without limitation, payments for tuition and fees and interest thereon, loss of earnings during the hundreds of hours that she devoted to her fruitless studies at McCANN, and loss of future earning capacity. WHEREFORE, Plaintiff demands judgment against Defendant in an amount which exceeds the limit for compulsory judicial arbitration plus costs and interest in accordance with law. COUNT II VIOLATION OF THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAWS, 73 P. S. § 201 -1, ET SEQ. -7- 39. The averments of T¶ 1 through 34 above inclusive are incorporated herein as though fully set forth. 40. Under Pennsylvania's Unfair Trade Practices and Consumer Protection Laws (hereinafter the "UTPCPL "), McCANN is a person. 41. In connection with the sale of its educational services and collection of tuition, fees, and related costs, McCANN committed the following unfair and deceptive acts and practices in violation of the UTPCPL. 42. With knowledge of the need for CAAHEP accreditation and knowledge of the lack of such accreditation, McCANN represented that its surgical technology program at Carlisle would prepare Plaintiff to meet the demands of the marketplace for certification as a surgical technologist or surgical assistant. 43. With knowledge of the need for CAAHEP accreditation and knowledge of the lack of such accreditation, McCANN represented that it would take the necessary steps to provide Plaintiff with a degree that would be accredited by CAAHEP so as to enable her to sit for the NBSTSA certification which would be required to enable Plaintiff to meet the demands of the marketplace for certification as a surgical technologist or surgical assistant and then failed to take the necessary steps to achieve accreditation of the surgical technology program at Carlisle. 44. In violation of the provisions of 73 Pa. C.S. § 201 -2 (4)(ii), the representations of McCANN constituted misrepresentations that the educational services of McCANN had the necessary accreditation approval of CAAHEP to enable Plaintiff to meet the demands of the marketplace as a certified surgical technologist or surgical assistant. -8- 45. In violation of the provisions of 73 Pa. C.S. § 201 -2 (4)(iii), the representations of McCANN constituted misrepresentations that the educational services of McCANN had the necessary accreditation approval of CAAHEP to enable Plaintiff to meet the demands of the marketplace as a certified surgical technologist or surgical assistant. 46. In violation of the provisions of 73 Pa. C.S. § 201 -2 (4)(v), the representations of McCANN constituted misrepresentations that the educational services of McCANN had the necessary accreditation approval to enable Plaintiff to meet the demands of the marketplace as a certified surgical technologist or surgical assistant. 47. In violation of the provisions of 73 Pa. C.S. § 201 -2 (4)(vii), the representations of McCANN constituted misrepresentations that the educational services of McCANN met the standard of accreditation approval to enable Plaintiff to meet the demands of the marketplace as a certified surgical technologist or surgical assistant. 48. In violation of the provisions of 73 Pa. C.S. § 201 -2 (4)(xxi), the representations of McCANN constituted fraudulent or deceptive conduct that the educational services of McCANN had the necessary accreditation approval to enable Plaintiff to meet the demands of the marketplace as a certified surgical technologist or surgical assistant, which caused confusion and misunderstanding on the part of Plaintiff as to whether or not her McCANN degree would enable her to meet the demands of the marketplace as a certified surgical technologist or surgical assistant. 49. Plaintiff relied upon the representations of McCANN as averred in this Complaint to her material and substantial detriment. -9- WHEREFORE, Plaintiff demands judgment against Defendant in an amount which exceeds the limit for compulsory judicial arbitration, treble damages, attorney fees, costs, interest ins accordance with law, and such additional relief as your Honorable Court shall deem necessary or proper. Wayne . Shade, Esquire Supreme Court No. 15712 53 West Pomfret Street Carlisle, Pennsylvania 17013 Telephone: 717- 243 -0220 Attorney for Plaintiff -10- The statements in the foregoing Complaint are based upon information which has been assembled by my attorney in this litigation. The language of the statements is not my own. I have read the statements; and, to the extent that they are based upon information which I have given to my counsel, they are true and correct to the best of my knowledge, information, and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904 relating to unworn falsification to authorities. Date: 6 harlotte Maslan Dobbs v MCCANN SCH60L OF BUSINESS' "tai TECHNOLOGY 0 HAZLETON CAMPUS O POTTSVILLE CAMPUS O ALLENTOWN CAMPUS O DICKSON CfrY CAMPUS 0 SUNBURY CAMPUS O CARLISLE CAMPUS 370M PLEW3000RNE 285D WOODGLEN ROAD 22ODNRVNGST 2227SCPANTONCARBONDAIEHWY 110NORTH4TMSIAEET 346YORKROAD WdETOWNSHP,PAIV 2 POT1 VU&PA179M ALLENTOWKPA18109 DVASONCNY,PA18519 SUNBLRXPA1W CARUSLE,PA 17013 APPLICATION FOR ADMISSION DATE 1 9- lo I t) SOCIAL SECURITY NUMBER IP;q / ( / O O MR. O MRS. IF MS. O MISS BIRTH DATE 13 - 'A - IQg I NAME(Print) 0_'11r)O44.P Yl�/ICIr1nr# PHONE (USE 6411 PEN OPLY. T CMMMMO FMCOPY) nw„m.....Makin N� ADDRESS 'Gj 1�✓)pn I� y I y p CITY ( /" k (o STATE fig_ ZIP M01 HIGH SCHOOL ( COURSE (' ,�.1 7t^t' GRADUATION DATE ` ol CJO OTHER SCHOOLS OR COLdEGEA ATTENDED ETHNICORIGIN: O HISPANIC /LATINO O AMERICAll INDIAN OR ALASKA NATIVE O BLACK OR AFRICAN AMERICAN O ASIAN WHITE O NATIVE HAWAIIAN OR OTHER PACIFIC ISLANDER O TWO OR MORE RACES NAME OF PROGRAM: r ----------------------- n TO BE COfy1PLETED BY SCHOOL I - �m `1 ( NUMBER OF TERMS ? TUITION PER CREDIT$ Diploma TOTAL CREDIT HOURS 6 TUITION TOTAL Zvat) O DAW REVENING STARTING DATE _ COMPLETION DATE Y 13I,a STARTING TERM: FALL O WINTER O SPRING O!SUMMER I){Y$40 APPLICATION FEES MITT D 17 APPL .ATION � O MID QUARTER SCHOOL REP. SIGNATURE - DATE: L_________ - - -- - --J METHOD OF FINANCING: XGRANTS )(STUDENT LOANS O VETERANS BENEFITS O SAVINGS O OTHER WE URGE ALL APPLICANTS TO COMPLETE THE FREE APPLICATION FOR FEDERAL STUDENT AID APPLICATION AS SOON AS POSSIBLE. WILL YOU BE COMPLETING THIS FORM? ' )RYES O NO DATE FILED: THE STUDENT UNDERSTANDS: 1. THE SCHOOL OFFERS USE OF ITS PLACEMENT ASSISTANCE BUT DOES NOT GUARANTEE EMPLOYMENT. 2. The School reserves the right to change entrance dates and to revise or withdraw courses and subjects. 3. The School reserves the right to discontinue enrollment of any student whose study, attendance, or conduct is unsatisfactory. 4. The School reserves the right to change tuition rates and fees If a notification of at least 60 days is given to the student. 5. 1 authorize the institution referenced above to request and receive any and all information Contained on my FAFSA and PHEAA State Grant record. 1 understand and authorize that all information submitted to USDE and PHEAA may be released to the institution listed above for the purpose of evaluating my eligibility for financial assistance for the award year. 6. Tuition refunds are made in accordance with school policy as also stated in the school catalog: Regular Term Refund Policy Ninety (90) percent of the tuition will be refunded for withdrawals made within the first week of the term (seven consecutive days). The refund total will decrease an additional ten (10) percent for each week thereafter, up to and including the sixth consecutive week. No refunds will be made after the sixth week of the term. Tuition paid beyond the term of withdrawal will be fully refunded. Mid -Term Refund Policy Eighty (80) percent of the tuition will be refunded for withdrawals made within the first week of the mid -term. The refund total will decrease an additional twenty (20) percent for each week thereafter, up to and including the third consecutive week. No refunds will be made after the third week of the mid -term. All refunds are made within fourteen (14) days of thawate of student withdrawal (defined as the last day of recorded attendance). 7. The School is licensed by The Slate Board of Private Licensed Schools, Commonwealth of Pennsylvania. Questions or concerns that are not satisfactorily resolved by the Campus Director or the President may be brought to the attention of the State Board of Private Licensed Schools, Pennsylvania Department of Education, 333 Market Street, 12th floor, Harrisburg, PA 17126.0333. Any questions or concerns regarding the school's admission application or the meaning, Interpretation, and application of any provisions set forth in this catalog or for any reason, may be discussed with the Campus Director. You (the student) and McCann School of Business & Technology agree that any dispute arising out of or relating to this admission application, your enrollment or your attendance at McCann School of Business &. Technology, whether such dispute arises during or after your attendance and whether the dispute Is based on contract, tort, statute, or otherwise, shall be resolved by binding arbitration In the city and county In which the school is located within the state of Pennsylvania. You (the student) and McCann School of Business & Technology each further agrees that this arbitration provision provides each party with Its exclusive remedy for redress of any grievance or resolution of any dispute arising out of this Agreement, AND EACH PARTY EXPRESSLY WAIVES ANY RIGHT, INCLUDING WITHOUT LIMITATION THE TO TRIAL BY JURY, R MIGHT HAVE TO SEEK REDRESS IN ANY FEDERAL, STATE OR LOCAL COURT OR OTHER FORUM, except for an action to enforce in court an arbitration award rendered to this Agreement " rxcxROWftD3eiwxrTwAv"E'c . A oPYOt? TRr'CORRENTIBCHC'lfl.71; S AL "OG AND"ADMIZi510N'A PQC7I77 1`AGRE'E 19 ASIDE BY THE RULES AND REGULATIONS Slit FORTH IN THE CATALOG AND I AGREE TO ACCEPT THE PROVISIONS OF THE CATALOG FOR THE PAYMENT OF TUITION, FEES, AND CHARGES FOR BOOKS AND SUPPLIES. THIS AGREEMENT IS NOT BINDING UNTIL ACCEPTED BY A REP $ENTATIVE OF T E SCHOOL J Il - 7� - ►r� ignature of Stu an Date Signed AS A PARENT OR GUARDIAN OF APPLICANT, I APPRO E THIS APPLICATION. Signature of Parent or Guardian Date Signed APPLICATION FEE A FEE OF $40 MUST ACCOMPANY THIS APPLICATION. THE APPLICATION FEE IS FULLY REFUNDABLE IF A STUDENT REQUESTS CANCELLATION WITHIN 5 CALENDAR DAYS AFTER SIGNING THE APPLICATION. A REQUEST FOR CANCELLATION WHICH IS NOT MADE IN WRITING SHALL BE CONFIRMED IN WRITING BY THE STUDENT WITHIN AN ADDITIONAL PERIOD OF 5 CALENDAR DAYS. Send Application and Both Copies to School with Application Fee. Pink copy will be returned to student along with a receipt for payment. WHITE COPY -FILE CANARY COPY - ACCOUNTING PINK COPY - STUDENT Bros EXHIBIT "A" SHERIFF'S OFFICE OF CUMBERLAND COUNTY-am mca = Ronny R Anderson Z:2= . -tee r. s Sheriff -<> 1 Jody S Smithp Chief Deputy i �C3 �.� Richard W Stewart y� CD rtl Solicitor OFF�caF r< Charlotte Masland Dobbs Case Number vs. Delta Career Education Corporation t/d/b/a McCann School of Business 2013-2263 SHERIFF'S RETURN OF SERVICE 04/29/2013 01:57 PM - Deputy William Cline, being duly sworn according to law, served the requested Complaint& Notice by handing a true copy to a person representing themselves to be Sandie Eisenburg,Admin. Assistant, who accepted as"Adult Person in Charge"for Delta Career Educatio Corporation t/d/b/a McCann School of Business at 346 York Road, South Middleton Townshi sle, PA 17013. WILL AM CLINE, UTY SHERIFF COST: $35.24 SO ANSWERS, April 30, 2013 RON ` R ANDERSON, SHERIFF (c)CountySuite Sheriff,,releosoft,Inc. CHARLOTTE MASLAND DOBBS, : IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION-LAW V. DELTA CAREER EDUCATION : NO. 2013 -2263 CIVIL TERM CORPORATION, C= trading and doing business as � rn McCANN SCHOOL OF BUSINESS : & TECHNOLOGY, and STEVEN CARNAHAN II Defendants : JURY TRIAL DEMANDED ACCEPTANCE OF SERVICE I, STEVEN CARNAHAN, II, hereby accept service of the Complaint, Interrogatories, and Requests for Production of Documents in the above-captioned matter. Date: _ 5-1f3 , 2013 St Carnahan, II CHARLOTTE MASLAND DOBBS, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION—LAW V. DELTA CAREER EDUCATION : NO. 2013 —2263 CIVIL TERM CORPORATION, trading and doing business as - ::j McCANN SCHOOL OF BUSINESS MM c mr-, & TECHNOLOGY, and Cnr- cv STEVEN CARNAHAN, II, r-M Defendants : JURY TRIAL DEMANDED 3< L . PRAECIPE TO CORRECT RECORD y�l TO: David D. Buell, Prothonotary The Acceptance of Service of Steven Carnahan, II, in the above matter was prepared and filed by this office. It erroneously indicates that Interrogatories and Requests for Production of Documents were served upon Mr. Carnahan in addition to the Complaint. Please accept this Praecipe for filing and docketing to correct the record to reflect that Steven Carnahan, II, has accepted service of the Complaint, only. Date: June 3, 2013 G� Wayne . Shade, Esquire Supreme Court No. 15712 53 West Pomfret Street Carlisle, Pennsylvania 17013 Telephone: 717-243-0220 Attorney for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHARLOTTE MASLAND DOBBS, Plaintiff, Docket Number 2013-2263 vs. PRELIMINARY OBJECTIONS DELTA CAREER EDUCATION AND PETITION TO COMPEL CORPORATION, trading and doing business ARBITRATION as MCCANN SCHOOL OF BUSINESS & TECHNOLOGY, and STEVEN CARNAHAN, 11, Defendants. Filed on behalf of Defendants, Delta Career Education Corporation, McCann Education Centers, Inc., and Steven Carnahan, II Counsel of Record for this Party: Kenneth M. Argentieri (PA ID No. 41468) DUANE MORRIS LLP 600 Grant Street, Suite 5010 Pittsburgh, PA 15219 Ph: 412.497.1005 kmaraentieri�a duanemorris.com NOTICE ]0 PLEAD: TO: Plaintiff You are hereby notified to file a written response to the enclosed Preliminary Objections and -- Petition to Compel Arbitration within twenty -�-= (20) days from service hereof or a judgment may n 1I = be cntere�i, amst you. no c " Attorneys for D endants Delta Career Education Corporatioq /Cann Education Centers, Inc., and ��' Steven Carnahan, II -t -_ OMI,3910974 1 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHARLOTTE MASLAND DOBBS, Plaintiff CIVIL ACTION - LAW vs. DELTA CAREER EDUCATION Docket Number 2013-2263 CORPORATION, trading and doing business as MCCANN SCHOOL OF BUSINESS & TECHNOLOGY, and STEVEN CARNAHAN, 11, Defendants. PRELIMINARY OBJECTIONS AND PETITION TO COMPEL ARBITRATION Defendants Delta Career Education Corporation, McCann Education Centers, Inc.1 and Steven Carnahan, II' (collectively, "the College") hereby assert these preliminary objections and petition to compel arbitration pursuant to Pa. R. Civ. P. 1028. This action should be dismissed in favor of arbitration. In support of its objections and petition, the College states as follows: I. PRELIMINARY OBJECTIONS AND PETITION TO COMPEL ARBITRATION 1. Plaintiff Charlotte Masland Dobbs ("Plaintiff'), commenced this action in the Court of Common Pleas of Cumberland County, Pennsylvania.by filing a Complaint on April 25, 2013. 1 McCann Education Centers, Inc. is incorrectly identified in the Complaint and case caption as McCann School of Business, Inc. 2 Plaintiff alleges that Defendant Steven Carnahan, 11 worked at the College during all times relevant to the Complaint. Compl. at 13. 2. In the Complaint, Plaintiff alleges a claim for breach of contract and a claim for violation of the unfair trade practices and consumer protection law against the College arising out of and/or relating to her enrollment or attendance at the College. 3. Plaintiff alleges that in 2010 she enrolled in the surgical technology program offered by the College. Compl. at� 15. 4. All of the Plaintiff's claims against the College are subject to a valid agreement to arbitrate that exists between Plaintiff and the College. Plaintiff signed an Application for Admission between the Plaintiff and the College. 5. The Application for Admission between Plaintiff and the College contains an arbitration provision which states: You (the student) and McCann School of Business & Teclu ology agree that any dispute arising out of or relating to this admission application, your enrollment or your attendance at McCann School of Business &Technology, whether such dispute arises during or after your attendance and whether the dispute is based on contract, tort, statute, or otherwise, shall be resolved by binding arbitration in the city and county in which the school is located within the state of Pennsylvania. You (the student) and McCann School of Business & Technology each further agrees that this arbitration provision provides each party with its exclusive remedy for redress of any grievance or resolution of any dispute arising out of this Agreement, AND EACH PARTY EXPRESSLY WAIVES ANY RIGHT. INCLUDING WITHOUT LIMITATION THE TO TRIAL BY JURY, IT MIGHT HAVE TO SEEK REDRESS IN ANY FEDERAL, STATE OR LOCAL COURT OR OTHER FORUM, except for an action to enforce in court an arbitration award rendered to this Agreement. 6. The dispute at issue, as alleged in the Complaint, is within the scope of the broad arbitration provision which, on its face, encompasses "any dispute arising out of or relating to the admission application, your enrollment or your attendance" at the College "whether the dispute is based on contract, tort, statute, or otherwise." 2 7. Counsel for the College requested that Plaintiff arbitrate her claims against the College pursuant to the arbitration agreement between the parties. Plaintiff refused. Counsel for Plaintiff did not dispute that a valid arbitration agreement exists between the parties. Accordingly, the College submits these Preliminary Objections and Petition to Compel Arbitration to protect the parties' contractual and statutorily-protected right to arbitration. B. The Action Must Be Stayed Pending A Determination on the Petition to Compel Arbitration. Any party to a judicial proceeding is entitled to a stay of the proceedings as soon as a petition to arbitrate the controversy has been filed. See 42 Pa. Cons. Stat. § 7304(d). As such, the College respectfully requests that the Court order an immediate stay of the action pending a decision by this Court on the Petition to Compel Arbitration. 8. When a court determines that a suit or proceeding is referable to arbitration, it should dismiss the suit and all of its proceedings. After compelling arbitration,there will be nothing left for this court to adjudicate or stay, so dismissal of the Complaint is the appropriate remedy. 9. In support of the Colleges Preliminary Objections and Petition to Compel Arbitration, the College attaches and incorporates the following: Attachment A: Affidavit of Jeremy Miller and Exhibit A to the Affidavit,which is the Plaintiff s Application for Admission containing the arbitration provision. 10. The College's will also submit a Brief in Support of Preliminary Objections and Petition to Compel Arbitration to be incorporated by reference. WHEREFORE, the College respectfully requests that (1) the Court order an immediate stay of the action pending a decision by this Court on the Petition to Compel Arbitration; 3 (2) Plaintiff be ordered to arbitrate any and all disputes as alleged in the Complaint and; (3) the case be dismissed. Respectfully submitted, Dated: June 7, 2073 $ _= _? A �, —_-- Z Kenneth M. Ateenticri (PA ID No. 41468) DUANE MORRIS LLP 600 Grant Street, Suite 5010 Pittsburgh, PA 15219 Ph: 412.497.1005 kmargentieri @duanemorris.com Attorney for Defendants Delta Career Education Corporation, McCann Education Centers, Inc., and Steven Carnahan, 11 4 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHARLOTTE MASLAND DOBBS, CIVIL ACTION - LAW Plaintiff, Docket Number 2013-2263 VS. DELTA CAREER EDUCATION AFFIDAVIT OF JEREMY CORPORATION, trading and doing business MILLER as MCCANN SCHOOL OF BUSINESS & TECHNOLOGY, and STEVEN CARNAHAN, . II, Defendants. COUNTY OF CUMBERLAND ) SS: COMMONWEALTH OF PENNSYLVANIA ) AFFIDAVIT Jeremy Miller, being first duly sworn on oath, deposes and states as follows: L 1 am authorized to execute this Affidavit on behalf of Defendants Delta Career Education Corporation, McCann Education Centers, Inc.1 and Steven Carnahan, B (collectively, "the College'). The statements made in this Affidavit are based on my personal knowledge. 2. I am the Director of Education for the Carlisle, Pennsylvania campus of the College. 3. The College is a nationally accredited private college offering career training in a variety of fields including the health and medical fields. 4. The College is regulated by the federal Department of Education under Title TV of the U.S. Higher Education Act. 20 U.S.C. § 1071, et seq. (°HEA"). It regularly McCann Education Centers, Inc. is incorrectly identified in the Complaint and case caption as McCann School of Business & Technology. DNI`J91098].I receives funds in the form of student loans that are regulated by the Department of Education. 5. Plaintiff Charlotte Masland Dobbs was a student at the College's Carlisle campus. 6. As a part of Plaintiff's enrollment at the College, Plaintiff signed an Application for Admission. The Application for Admission between Plaintiff and the College contains an arbitration provision which states: You (the student) and McCann School of Business &Technology agree that any dispute arising out of or relating to this admission application, your enrollment or your attendance at McCann School of Business & Technology, whether such dispute arises during or after your attendance and whether the dispute is based on contract, tort, statute, or otherwise, shall be resolved by binding arbitration in the city and county in which the school is located within the state of Pennsylvania. You (the student) and McCann School of Business & Technology each further agrees that this arbitration provision provides each party with its exclusive remedy for redress of any grievance or resolution of any dispute arising out of this Agreement, AND EACH PARTY EXPRESSLY WAIVES ANY RIGHT, INCLUDING WITHOUT LIMITATION TI-IF TO TRIAL BY JURY, IT MIGHT HAVE TO SEEK REDRESS IN ANY FEDERAL, STATE OR LOCAL COURT OR OTHER FORUM, except for an action to enforce in court an arbitration award rendered to this Agreement. By signing the Application for Admission, Plaintiff acknowledged that she had read and agreed to the arbitration provision A true and correct copy of the Application for Admission (with personal information redacted) signed by Plaintiff is attached hereto as Exhibit "A." 7. The College's operations are extensively regulated by the United States Department of Education pursuant to the HEA, 20 U.S.C. §§ 1071, et seq. The College is a participant in the United States Department of Education's Student Financial Aid Program,administered under Title IV of the U.S. Code and the HEA. This requires the College to be accredited by an accrediting commission 2 recognized by the United States Department of Education, and to comply with a vast array of federal statutes and regulations governing participation Title IV programs. Many of these statutes and regulations govern the process of admissions including, but by no means limited to, the provision of££nancial aid. 8. The College is nationally accredited by the Accrediting Council for Independent Colleges and Schools ("ACICS"). ACICS is located in Washington. DC and is approved to confer accreditation by the United States Department of Education under the HEA. 9. Most of the tuition for the College's students are paid by way of a mix of federal student loans and grants, all administered under the 1 itle IV student financial aid statutes and regulations previously mentioned. The financial aid award decisions are based on a federal form called a Free Application for Federal Student Aid ("FAFSA"), which are electronically transmitted to the United States Department of Education as part of the approval and funding process, and funds are in fact electronically transmitted by modalities of interstate commerce including wire, internet. and U.S. mail. BY: J my Miller J Subscribed and swom to before me this S day of l-i._Q_ 2013, by Notary Public M M WEALTH OF PUMYLVAMA NWAPoAL SEAL My Commission expires: 1 �-Z4 DANCiIE a NEtu,NW"Pub0c Boo ut Cafte.Cwrhsylane County My ComtWm E*bw Nm.24,2010 3 Ur I c: U avi.uv�xwni I r rvUinocn �h7 I lOD 1 V d/A O MR. O MRS. V MS. O MISS BIRTH DATE NAME(Print) 0.1'1/1/'101-1f m�y1 PHONE -7I1 - 5ZO-131q u nsE Vaire.ol3. caaa—Toll 'o i ADDRESS 10 hi yl(✓1 I�Y(VP CITYX enrlc%io STATE P.A ZIP 1-7DIS` HIGHSCHOOL 1 COURSE �.� ,( PAa?GRADUATION DATE aGOI OTHER SCHOOLS OR COL EGES ATTENDED '—'�"T� ETHNICORIGIN: OHISPANICMTINO O AMERICAN INDIAN OR ALASKA NATIVE O BLACK OR AFRICAN AMERICAN OASIAN gtWHITE O NATIVE HAWAIIAN OR OTHER PACIFIC ISLANDER_O_T_NOOR_M_OR_E_RA_CES__ NAME OF PROGRAM: TO BE CO LIFTED BY SCHOOL ^_ � ( ASB/T Dog— I NUMBER C TERMS in TUITION PER CREDIT$ QBr°m ( )Diploma I TOTAL CREDIT HOU S LTUITON TOTAL Z O DA EVENING I STARTING DATE COMPLETION DATE I STARTING TERM: FALL O WINTER O SPRING O SUMMER IX$40 APPLICATION FEE S>U PL ON O MID QUARTER /SCHOOL REP. SIGNATURE DATE: I I METHOD OF FINANCING: XGRANTSASTUDENT LOANS O VETERANS BENEFITS O SAVINGS OOTHER WE URGE ALL APPLICANTS TO COMPLETE THE FREE F PPLICATION FOR FEDERAL STUDENT AID APPLICATION AS SOON AS POSSIBLE.WILL YOU BE COMPLETING THIS FORM? AYES ONO DATE FILED: THE STUDENT UNDERSTANDS: 1. THE SCHOOL OFFERS USE OF ITS PLACEMENT ASSISTANCE BUT DOES NOT GUARANTEE EMPLOYMENT. 2. The School reserves the right to change entrance dates and to revise or withdraw courses and subjects. 3. The School reserves the right to discontinue enrollment of any student whose study, attendance,or conduct is unsatisfactory. 4. The School reserves the right to change tudkxl rates and fees if a notification of at least 60 days is given to the student. 5. 1 authorize the institution referenced above to request and receive any and all information contained on my FAFSA and PHFAA State Grant record. I understand and authorize that all information submitted to USDE and PHEAA may be released to the institution listed above for the purpose of evaluating my eligibility for financial assistance for the award year. 6. Tuition refunds are made in accordance with school policy as also slated In the school Catalog: Regular Tenn Refund Policv Ninety(90) percent of the tuition will be refunded for withdrawals made within the first week of the tens(seven consecutive days).The refund total will decrease an additional ten(10)percent for each weak thereafter, up to and including the sixth consecutive weak. No refunds will be made after the sixth week of the tens. Tuition paid beyond the term of withdrawal will be fully refunded. Mid-Tom Rotund Policy Eighty(60)percent of the tuition will be refunded for withdrawals made within the first weak of the mid-term. The refund total will decrease an additional twenty(20) percent for each week thereafter,up to and including the third consecutive week. No refunds will be made after the third week of the mid-tens. All refunds are made within fourteen (14)days of the date of student withdrawal (defined as the last day of recorded attendance). 7. The School is licensed by The Slate Board of Private Licensed Schools,Commonwealth of Pennsylvania.Questions or concerns that are not Satisfactorily resolved by the Campus Director or the President may be brought to the attention of the State Board of Private Licensed Schools, Pennsylvania Department of Education,333 Markel Street, 12th noon, Harrisburg,PA 17126-0333. Any questions or concerns regarding the schoors admisslon application or the meaning,interpretation,end application of any provisions set forth In this catalog or for any reason, may be discussed with the Campus Director. You (the student)and McCann School of Business d Technology agree that any dispute arising out of or relating to this admission application, your enrollment or your attendance M McCann School of Business 8 Technology,whether such dispute arises during or after your attendance and whether the dispute is based on contract, tort, statute, or otherwise, shall be resolved by binding arbltratlon In the city and county In which the school Is located within the state of Pennsylvania.You (the student)and McCann School of Swim"S Technology each further agrees that this arbtiretlon provision provides each party with Rs exclusive remedy for redress of any grievance or resolution of any dispute arising out of Nis Agreement. AND EACH PARTY EXPRESSLY WAIVES ANY RIGHT,INCLUDING WITHOUT LIMITATION THE TO TRIAL BY JURY,IT MIGHT HAVE TO SEEK REDRESS IN ANY FEDERAL,STATE OR LOCAL COURT OR OTHER FORUM,except for an action to enforce In court an arbitration award rendered W this Agreement. 1 ACKNOWLEDGE THAT I HAVE RECEIVED A COPY OF THE CURRENT SCHOOL CATALOG AND ADMISSION APPLICATION. I AGREE TO ASIDE BY THE RULES AND REGULATIONS SET FORTH IN THE CATALOG AND 1 AGREE TO ACCEPT THE PROVISIONS OF THE CATALOG FOR THE PAYMENT OF TUITION,FEES,AND CHARGES FOR BOOKS AND SUPPLIES.THIS AGREEMENT IS NOT BINDING UNTIL ACCEPTED BY A REP�gE"�ATIVE OF T E SCHOOL. MnaWre dSlu n Dale Signed AS A PARENT OR GUARDIAN OF APPLICANT,I APPR E THIS APPLICATION. VERIFICATION I, Jeremy Miller, verify that the statements made in the foregoing Preliminary Objections and Petition to Compel Arbitration, which are within my personal knowledge, are true and correct and those which are based on information received from others I believe to be true and correct. I understand that any false statements in the forging documents are subject to the penalties under 18 Pa.C.S.A.,§ 4904, relating to unsworn falsification to authorities. Date: (0'&113 5V1111Y MILLER VERIFICATION I, Steven Carnahan, 11, verify that the statements made in the foregoing Preliminary Objections and Petition to Compel Arbitration, which are within my personal knowledge, are true and correct and those which are based on information received from others I believe to be true and correct. I understand that any false statements in the forging documents are subject to the penalties /uundeerr 18 Pa.C.SA,§ 4904, relating to unworn falsification to authorities. Date: " " VEN CARNAHAN,II COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHARLOTTE. MASLAND DOBBS, Plaintiff. CIVIL ACTION - LAW vs. Docket Number 2013-2263 DELTA CAREER EDUCATION CORPORATION, trading and doing business as MCCANN SCHOOL OF BUSINESS & TECHNOLOGY, and STEVEN CARNAHAN, II, Defendants. ORDER AND NOW, this day of , 2013, upon consideration of the Preliminary Objections and Petition to Compel Arbitration filed by Defendants Delta Career Education Corporation, McCann Education Centers, Inc., and Steven Carnahan, 11 (collectively, "The College"), it is hereby ORDERED that the College's Petition is GRANTED. It is FURTHER ORDERED that Plaintiff Charlotte Masland Dobbs is required to arbitrate all disputes between her and the College pursuant to the arbitration agreement between the parties. It is FURTHER ORDERED that the claims against the College are hereby dismissed in favor of arbitration. BY TI IE COURT: J COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHARLOTTE MASLAND DOBBS, Plaintiff, CIVIL ACTION - LAW vs. Docket Number 2013-2263 DELTA CAREER EDUCATION CORPORATION, trading and doing business as MCCANN SCHOOL OF BUSINESS & TECHNOLOGY, and STEVEN CARNAHAN, . II, Defendants. ORDER AND NOW, this day of , 2013, upon consideration of the Preliminary Objections and Petition to Compel Arbitration filed by Defendants Delta Career Education Corporation, McCann Education Centers, Inc., and Steven Carnahan, 11 (collectively, "The College"), the Court hereby ORDERS an immediate stay of the action pending a decision by this Court on the Petition to Compel Arbitration. BY THE COURT: CERTIFICATE OF SERVICE I hereby certify that on June 7, 2013 a copy of the foregoing Preliminary Objections and Petition to Compel Arbitration has been served by U.S. first class mail, postage prepaid, upon the following counsel of record: Wayne F. Shade 53 West Pomfret Street Carlisle, PA 17013 Kenneth M. Argenntieri PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in triplicate) C-) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for tt�nw* ; Argument Court.) -.0-� -------------_--_-----.. ---------------------------------------------------- --------------__ CAPTION OF CASE (entire caption must be stated in full) CO t • CHARLOTTE MASLAND DOBBS, Plaintiff, t ) VS. tz-G DELTA CAREER EDUCATION CORPORATION, � .A trading and doing business as MCCANN -e- SCHOOL OF BUSINESS & TECHNOLOGY, and STEVEN CARNAHAN, II, NO 2013-2263 Term Defendants. 1. State matter to be argued(i.e., plaintiff's motion for new trial', defendant's demurrer to complaint, etc.): Defendants'Preliminary Objections and Petition to Compel Arbitration 2. Identify all counsel who will argue cases: (a) for plaintiffs: Wayne F. Shade(PA ID No. 15712),53 West Pomfret St.,Carlisle,PA 17013 (Name and Address) (b) for defendants: Kenneth M. Argentieri (PA ID No. 41468)/DUANE MORRIS LLP (Name and Address) 600 Grant Street, Suite 5010, Pittsburgh, PA 15219 3. 1 will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: Signature Kenneth M. Argentieri Print your name Delta Career Education Corporation, McCann Education Centers, Inc. and Attorney for Defendants Date: June 14,2013 Steven Carnahan,.. I I INSTRUCTIONS: 1.Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR(not the Prothonotary) before argument. 2.The moving party shall file and serve their brief 14 days prior to argument. 3.The responding party shall file their brief 7 days prior to argument. 4. If argument is continued new briefs must be filed with the COURT ADMINISTRATOR(not the Prothonotary) after the case is relisted. o, R. ZIP ■ #4. ,t _ i4 1 ii) CHARLOTTE MASLAND DOBBS, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA `-'"' L...0 23 Fii h; r j~ v. "t+13ERLAND COW;I PENNSYLVANIA DELTA CAREER EDUCATION : NO.2013—2263 CIVIL TERM CORPORATION, MCCANN SCHOOL OF BUSINESS&TECHNOLOGY . STEVEN CARNAHAN, II, .• Defendants .• • IN RE: DEFENDANTS' PRELIMINARY OBJECTIONS AND PETITION TO COMPEL ARBITRATION BEFORE GUIDO, EBERT, PECK,JJ. ORDER OF COURT AND NOW,this 19 'day of DECEMBER, 2013, upon consideration of the Defendants' Preliminary Objections and Petition to Compel Arbitration as well as the briefs filed by the parties in support of their respective positions, and having heard argument thereon,we are satisfied that the dispute between the parties falls within the scope of the arbitration clause contained in the Admissions Application. Defendants' Preliminary Objections are SUSTAINED and the Petition to Compel Arbitration is GRANTED. By the Court,, , Edward E. Guido,J. e/ Wayne Shade, Esquire Kenneth M. Argentieri, Esquire Court Administrator .,-ft.WSLIA.)1 '(t. :sld 3101..2/ta !ec f)2 ....