By Hailey Konnath

Law360 (March 4, 2021, 10:41 PM EST) -- Southern New Hampshire University has agreed to pay $1.25 million to settle a suit brought by students seeking tuition and fee refunds in the wake of pandemic-related closures, the students told a New Hampshire federal court Wednesday.

The deal appears to be the first of its kind as a slew of universities around the country continue to battle similar claims brought by students.

In her May 2020 proposed class action complaint, student Brianna Wright had alleged that the university breached its contract with its students by not providing in-person instruction during the spring semester 2020. Like most other universities, SNHU had shifted its classes online as COVID-19 tore through the country.

SNHU maintains that it didn't breach its contract with students, but said that Wednesday's proposed settlement is "best for SNHU's learners." Students will get partial refunds from the settlement fund, according to a statement from the university.

The deal was reached after mediation in late January, the students said in their motion seeking preliminary approval. The agreement takes into account the "uncertainty and risks inherent in any litigation, the desire to avoid the expenditure of further legal fees and costs and the benefits that students will receive," they said in the motion.

Under the deal, all students and former students who paid, or on whose behalf payment was made, tuition and fees for the spring semester 2020 at SNHU would be eligible for the partial reimbursements.

Wright and Bursor & Fisher PA would also be appointed class representative and class counsel, respectively, according to the motion. Wright would come away with an incentive award of $5,000 and Bursor & Fisher would get $416,666 in attorney fees, should the agreement garner court approval.

Phil Fraietta, counsel for the students, told Law360 on Thursday, "We are proud to have negotiated a settlement that will provide meaningful relief to the students."

SNHU said in the statement provided to Law360 on Thursday that it issued prorated room and board refunds during the spring 2020 semester and many students were eligible for additional funds from the Coronavirus Aid, Relief and Economic Security Act.

The university "strongly believes faculty and staff went above and beyond to help its students finish the semester strong and worked tirelessly to deliver the best SNHU experience possible given the extraordinary circumstances," it said.

The suit against SNHU came amid an onslaught of litigation over tuition and fees paid during the pandemic's onset. So far, the suits have seen a mixed reception in the courts, with cases that identify specific services or facility access promised in exchange for tuition and fees faring the best.

On Monday, a New York federal judge whittled down a pair of proposed class actions demanding tuition and fee reimbursements from Columbia University and Pace University, ruling that students can only pursue claims that identify specific contractual promises their schools allegedly broke.

Those suits were filed in April 2020 around the same time as similar suits against Cornell University, Michigan State University, the University of Miami and Drexel University.

The students are represented by Philip L. Fraietta, Alec M. Leslie and Sarah N. Westcot of Bursor & Fisher PA.

SNHU is represented by Christopher Cole and John-Mark Turner of Sheehan Phinney Bass & Green PA and Robert J. Burns of Holland & Knight LLP.

The case is Brianna Wright v. Southern New Hampshire University, case number 1:20-cv-00609, in the U.S. District Court for the District of New Hampshire.

--Editing by Michael Watanabe

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