The United States Law Week

Failed Massachusetts College Wins Appeal Over Abrupt Closure

March 25, 2020, 11:25 PM

A group of former Mount Ida College students can’t revive claims of fiduciary breach, privacy violations stemming from the school’s abrupt closure due to insolvency, the First Circuit ruled Wednesday.

Neither the Massachusetts college nor its administrators had any fiduciary obligation to tell students about its financial struggles, especially since there was a direct conflict of interest under the circumstances, the appeals court found.

Mount Ida didn’t violate the students’ privacy by sending their academic information to the University of Massachusetts Dartmouth to facilitate transfers after the closure, the court said. This served the legitimate business purposes of helping students...

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