CHARLESTON — More than 30 arbitration cases involving Salem International University have quietly settled.
Rusty Webb with The Webb Law Centre said the lawsuits were settled confidentially.
"We’re satisfied," Webb said in an interview with The West Virginia Record. "I wish Salem University the best. It’s a confidential settlement, so we can’t disclose it."
Webb
It was a long path to settlement, Webb said.
"It went to the Supreme Court two times," Webb said. "The first Supreme Court decision was not favorable. The Supreme Court overruled the circuit judge who said the arbitration clause was enforceable under one of the provisions."
Webb said the defense then appealed it to the Supreme Court.
"The Supreme Court overruled the judge," Webb said. "The judge said the class actions precluded the enforcement of the arbitration clause and the Supreme Court disagreed."
Webb said when it came back to Judge James Matish, Matish followed the Supreme Court and entered an order requiring arbitration.
"We appealed that case back to the Supreme Court and they denied it," Webb said. "We thought we had another opportunity to set aside the arbitration clause, but the Supreme Court denied it."
Webb said when it became clear that arbitration was the method to use, they engaged in some serious settlement negotiations and settled the cases this spring.
"We settled the cases individually, Webb said. "There were around 33 of them."
The cases involved students who were enrolled in Salem's School of Nursing Associate Degree program and paid the school for tuition.
The students learned in July 2013 that the university lacked the accreditation for the program and that they would not receive refunds for the tuition they had paid.
The school continued to charge the students. The school failed to correct the deficiencies within the program and lost accreditation without informing students of any problem.
The students filed the lawsuit against the school and its president, John Luotto, in August 2013.
Harrison County Circuit Court case number: 13-C-348
