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Legal Battle Over Golden Gate University Law School’s Closure

By Maria Lenin Laus | Dated: 07-24-2024

A Legal Fight to Keep the Doors Open

Faculty, students, and alumni of Golden Gate University Law School are fighting to prevent the closure of the 123-year-old institution. A pivotal hearing is scheduled for next week in a California state court where plaintiffs will seek an injunction against the abrupt decision to shut down the program.

Hearing Set for Injunction Request

The hearing to discuss the motion for an injunction is set for Tuesday, July 30, in the San Francisco County Superior Court. Presiding over the case will be Judge Richard B. Ulmer Jr. Ryan Griffith, the lead attorney from Bay Area Receivership Group and an adjunct professor at Golden Gate University, has been actively involved in the legal proceedings. Griffith filed a complaint earlier this year on behalf of four students and the alumni association, citing breach of contract, promissory estoppel, unlawful business practices, and fraud.

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The Controversial Teach-Out Plan

In March, the American Bar Association (ABA) approved a revised Teach-Out Plan, which allows the school’s accreditation to continue until July 2027 but halts the admission of new students after this summer. Current students are to be transferred to the University of San Francisco and Mitchell Hamline School of Law in Minnesota. However, Griffith argues that the details of this plan have not been transparently shared with the affected parties.

Accusations Against University Leadership

The complaint accuses the university president, David J. Fike, of engaging in schemes that financially burdened the law program, leading to its proposed closure. Allegations include incurring millions of dollars in debt and hastily implementing online legal programs. Griffith highlights Fike’s history of financial crises at other institutions, pointing out similar outcomes during his tenure at Marygrove College and Holy Names University.

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Implications for Students and Faculty

The abrupt closure announcement has particularly impacted students who were offered free tuition in 2022, as they have yet to complete their bar exams. Griffith stresses that these students would not have enrolled had they known about the impending closure and relocation to Minnesota. He contends that Golden Gate University has failed to provide evidence against the injunction, which aims to allow current students to graduate without disruption.

Lack of Clarity and Communication

There has been no clear communication from the successor institutions, the University of San Francisco and Mitchell Hamline, about their roles in the Teach-Out Plan. This lack of verification has left students uncertain about their educational futures. Griffith’s reply brief emphasizes that the absence of documentation from these schools is significant, as they are not obligated to honor the commitments made by Golden Gate University.

A Broader Issue in Legal Education

Griffith points out that Golden Gate University is not alone in facing such challenges, noting the example of Argosy University’s Western State College of Law, which managed to navigate financial troubles through a receivership. He advocates for a similar approach to be considered for Golden Gate University.

Awaiting the Court’s Decision

The upcoming hearing will determine if the injunction to keep the law school open for another year will be granted. Following this, efforts to enter into receivership may begin. Griffith, despite being an adjunct professor, expresses his personal stake in the matter, highlighting his disappointment at seeing his alma mater potentially close.

University’s Response

A spokesperson for Golden Gate University clarified that the institution is not closing but has reached agreements with other law schools for the teach-out process. Despite this, the plaintiffs remain unconvinced and continue to seek clarity and a more secure plan for current students.

Legal Counsel and Next Steps

Legal representatives for Golden Gate University, including Rene I. Gamboa, Robert J. Flemming III, and Mark S. Posard, have not commented on the case. The court’s decision on the injunction will be a critical step in determining the future of Golden Gate University Law School.

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