Update on Class Arbitration
Hello all,
We have an update on the class arbitration filed with the American Arbitration Association in May 2009. On July 16, 2010, Arbitrator William Baker denied our Motion for Clause Construction, which means he determined that the language in the arbitration agreement, which you had no ability to negotiate, permits individual arbitration only. The arbitrator’s decision was based upon a recent ruling by the United States Supreme Court in the case of Stolt-Nielsen, which resolved a dispute between two sophisticated businesses as to whether an arbitration agreement permitted class arbitration. According to the arbitrator, the absence of any direct reference to class arbitration means there was no agreement for students to arbitrate as a class.
Arbitrator Baker’s decision was not based on Westwood proving or disproving anything. It was purely procedural and did not address the allegations of deceptive practices and violations of Colorado lending laws or determine they were unfounded or lacked merit. We believe that applying Stolt-Nielsen to a dispute between consumers, like students, and a major corporation, like Westwood, is unfair and wrong.
Nevertheless, we see the arbitrator’s decision as a positive one, aside from the fact that it delayed the ultimate resolution of students’ claims. Now that students are freed from continuing in arbitration, they can and will proceed to litigate their claims in a variety of forums, including district courts across the country. We assure you that the fight will continue, and we will not rest until Westwood is held accountable for its conduct.
In the meantime, the other class actions we filed against Westwood in federal and state courts in Texas and Wisconsin are being vigorously prosecuted. Both cases are based upon Westwood offering online programs in violation of state law. For students who did not attend online programs in these two states, a new plan of action will be revealed soon.
If you have questions, please do not hesitate to contact us.
Sincerely,
Attorney Jonathan Cohen
Ok Jonathan, so do I need to file my own arbitration now?
And how do I do this?
I lived in Oklahoma and went to Westwood College Online….
I would also like to know what to do as well, I lived in ohio and then new york and went to Westwood online.
So I’m guessing and trying to understand the whole arbitration thing, was just happened was we can’t file a class action against Westwood but have to do individual lawsuits under the arbitration guidelines?
Johnathan if you could clear that up for us that would be great.
Thanks for helping us fight these rips off artists.
That does pose a fascinating question. I’m in Nevada and went to Westwood online. There’s no way I could afford to file an individual claim and even hope to win. Besides, they’ve already sent their APEX loan to collections in my name and I don’t even have an income yet! I haven’t graduated, either. They’re ruining my credit before I have a chance to get started. How can students with thousands of dollars in debt hope to file claims on their own and win? It’s expensive just to file the claim in the first place!
I also thought their APEX loan setup was getting them in trouble in Colorado, too. What’s happening with that?
Yes, I am a little confused about what this means.
Is this stating that we, as students, are somewhat on our own now in terms of reaching a settlement; has the case basically been thrown out or is it disregarding our involvement?
Jeff brings up a good point, what does that mean for us (the students) specifically?
I used Westwood Online while I lived in Colorado, but now in California barely making ends meet with the school loans I have – what kind of effect does relocating have on making our claims (individual or as a class)?