Urquilla-Diaz et al v. Kaplan University et al, No. 1:2009cv20756 - Document 315 (S.D. Fla. 2012)
Court Description: ORDER granting 301 Motion for Leave to Amend. Third Amended Complaint due by 6/1/12. Signed by Judge Patricia A. Seitz on 5/21/12. (tp) Modified by unsealing per Chambers on 5/21/2012 (nc).
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Urquilla-Diaz et al v. Kaplan University et al Doc. 315 UNI TED STATE S D I STRI T C O U RT C SO U TH ERN DI STR I T O F FL O R I A C D CA SE N O . 20756- V . TZ/ M ON TO N 09CI SE1 SI UNI TED STA TES O F A M ERI , CA d r l J DE GI x e. U LLESPI E, Pl i if a ntf , I PLA N UN I ERSI ,e al, QA V TY t . De e nt . f nda s / O R DER G R ANT I G I PA R T M O TI N FO R LEA VE TO A M EN D N N O THI M ATTER i bef et Co ton Relt r sM oton f Le t Am e a Fie S s or he ur ao ' i or ave o nd nd l Hi Th r Ame d d Co an ( 30 j Reao s e st n n t c mplitt rmo e s id n e mplit DE- 1 . lt r e k o me d he o an o e v ale to ofot rr l t st ha be n dim is a s ve ed byprorCour or ra t l gai ns he e aor hat ve e s s ed nd e r i t de nd o cl rf t tm e f nm e oft a l ged f aud. Def nda soppo e t m o i n be us i a t m pt t a iy he i r he le r e nt s he t o ca e t te s o clrf or asDe e a iy , f ndant ale c nget tme fa eoft a lged fa e ac i t s lge, ha he i r m he le r udul nt tviy. H ow e r D e e ve , f ndant do nota a t r i e a opposton t Re a orf lng a a ende s ppe r o a s ny ii o l t ii n m d co aitt r mpl n o emove al ga i t tha be dimi s d ors ve e Bec us l av t a e le tons ha ve en s s e e r d. a e e e o m nd s d befeey gi t M oton i gr nt i pa' l i gr nt d a t aloft pr pos houl r l ven he i s a ed n l. t s a e s o 1 he o ed t a e m ndme se e t e t ta lgec i nt xc pt hos ha le ontnuednon- ompla wih t Re biia i Ac . c ince t he ha lt ton t 1 Bac . kgro und Fac s t ReaorJ Gil pi ( le pi) af me empl eofDee ntKa anUni riy, lt ude les e Gils e , or r oye fnda pl vest al wih t o ot rf m e e pl ye s fl d t i tr tc pl ntunders alon M a c 7,2008 ong t w he or r m o e , ie he r i s om ai e rh algi camsunde t Fas Cli Ac ( le ng li r he le ams t FCA) Subs que l t n ndedc ant we e . e nty,wo me ompli s r fld.TheSe ondAmende Compli ( 1 ,wa tldunde salonJ 24,2009a ie c d ant DE- 70) s ie re une nd Dockets.Justia.com uns ald,by Cour or r o J y 15,2009.Uli ael t Co tdim is one ofGil pi ' e e t de , n ul tm t y, he ur s s ed les e s cli s dim is t FCA c am sbr am , s s ed he li oughtb t ot e oy s a s ver d a t rcli y he her mpl ee , nd e e no he a m, l a ngonl Gils e sFCA c am spe ng i t sc s Gil pi now s kst ame hi e vi y le pi ' li ndi n hi a e. les e ee o nd s c r ntFCA c a m s ur e li . Dee t Ka a Uni riy( a Ka a Hi rEduc tonCor ( fndans pln vest KU) nd pln ghe ai p. KHEC)ar e a r die by t Hi cc e t d he gherLe r ng Commi son a a er cpint off r lsude fna alad a ni s i nd r e i e s ede a t nt i nci i f undsfom t U . De rme ofEduc ton, s ntt t HEA. KU ope aesnum e ous r he S. pa t nt a i pur ua o he rt r onlne e atona e e pr s t o ho t U nied St es U i a w holy ow ned s i a y of i duc i l nt r ies hr ug ut he t at .K s l ubs di r KHEC. KHEC i adi sonofDee ntKa a l .( pln) Gil pi wor df r I s vii fnda pln,nc Ka a . les e ke o De e ntzfom Aprl2004 t ough Aprl2005 a aCour eDe l pe ,De t e tChaima f nda s r i hr i s s ve o r parm n r n, a As oc ae Pr e s ofPa algalSt es nd s i t of s or r e udi . The Se cond Am e ed Co pl ntalege a vi ai oft Pr a Pa tcpai nd m ai l s ol ton he ogr m rii ton Agee nt( .l or rt obanfdea sude fna aladt oughTil I oft HEA, r me PPA) n de o ti e rl t nt i nci i hr te V he a e tona i tt i mus c riyt t Unie Stt govenme ( r t t ti wil n ducai lnsiuton t e tf o he td aes r nt Govemnen) ha t l c ompl wih saut y a r gult y pr r quiie esa ihe byt HEA a t De rme of y t t t or nd e a or e e sts t bls d he nd he pa t nt Educ ton( ai DOE) Ce ttcai i donet ou t e c i ofaPPA. . rii ton s hr gh he xe uton Gil s e' c am salegeavi a i oft PPA ba e on De e nt a l ed f iur t le pi s l i l olton he sd f nda s' leg a l e o l heSec Ame d Compli ,i t s mepa a a al ge t KU i awholy r f ond nde ant n he a r gr ph, le s hat s l owne s i a y ofTheW as ngt Pos Compa a t tKU i awholy o d s i a y d ubsdir hi on t ny nd ha s l wne ubsdir ofKH EC . 2 Se The cond Am e d Com pl i doesnoti ca e f w hom G il s e w or nde a nt ndi t or le pi ked. Ho ver t pr pos d Thid Ame d Compl i a lgest tGil pi wa e oy by KU. we , he o e r nde ant le ha les e s mpl ed 2 c ywih j504oft Re biiai Ac. ThePPA rfr est tt educ tonal ompl t he ha ltton t3 eeenc ha he ai i tt i wilcompl wih j504oft Re lttonAct 0nAprl1 2005,Gil pi flda nsiuton l y t he habiiai . i 4, les e ie co ai wih t DOE' OfieofCi lRi s( mpl nt t he s fc vi ght OCR)be aus KU fie t a ommodae c e ald o cc t Gils e' bi a dior . The 0CR i esi t d t cai ,whi h i de e buti Ocobe le pi s polr s der nv tga e he l m c t ni d, n t r 2005,t OCR f t tKU wasi vi ai ofj5 oft Re lt i Ac a is he ound ha n olton 04 he habiiaton t nd t i e tngr ul tons4Asar s toft fndi ,OCR a KU e e ed i o aRes u i mpl men i eg ai . e ul he i ngs nd ntr nt ol ton 3 ci 5 oft Reha lt i Ac,29U. C.j7 r dsi pe i ntpat se ton 04 he biiaton t S. 94,ea n rtne r: ()Pr mu g to of ue a dr g ai n a o lain r ls n e ulto s No o her s q lfe i vi lwih adia lt i t Unie Stt ,a dei d i t wie uaii d ndi dua t s biiy n he t d aes s fne n s cin7 5 2 )o t i t l, h l, oeyb r ao o he o h sd s blt, ee cu e e to 0 ( 0 f hs i e s als ll y e s n f r r i ia ii b x ld d t y fo t ep riiaini b d ne t eb n ft o , rb s b e tdt d srmi to r m h a t p to n, e e id h e eis fo e u j ce o ic i nain c unde anypr r oraci t r cevi Fe r lfna i las it e orunde anypr a r og am tviy e i ng de a i nc a ssanc r ogr m ora i t c ctviy onduc e by a Exec i ag nc orb t Unie St t sPosa Se vie. td ny utve e y y he t d a e t l r e The hea ofea h s h a d c uc genc s l pr m ul t s h r gul to asm a bene es a yt c r y hal o ga e uc e ai ns y c s r o ary outt ame m e st t ss c i m a by t Re biia i Com pr he i Ser c , he nd nt o hi e ton de he ha lt ton, e nsve vies a De o e a Diabiii sAc of1 nd velpm nt l s lte t 978. #+* ( d ogrm o aci t 'dei d b) l a r tviy' fne pr Fort pum os soft ss c i t t m d og n ora tviy'm e nsa loft he e hi e ton, he er d r m pr c i t ' a l he ope a i of r tons *** ( ( ane iec po ain, rne s p,o ohe prvaeor ni ton, a e ies e 3)A) ntr or r to pat rhi r t r i t ga zai or n ntr ol pr i or hi opret s p- ()i a ssa i e e dt s c ai pa t rhi prvaeor niai ors e i f s itnce s xtnde o uch omorton, rnes p, i t ga z ton, ol pr i t r hi asa whol or opre o s p e; (i whihi p i cp l e ga e i teb sn s o p o ii ge u ain, at c r , i) c s rn ial n g d n h u ie s f r vd n d c to he lh ae y housng,s als vies orpa ksa r c eai n; i oci er c , r nd e r to 4F OCR s toutisfndi i a Oct r27,2005 doc 'he e t i ngs n n obe umentwhi h sa e t tKU was c tt d ha i vo ai o j5 4f r h f lwigr ao s ( )t eu i ri d e n t v p bl h d n ilton f 0 o t e ol n e s n : 1 h nvest o s o ha e u i e o y s pr e esdealnghow adiablde o ec nr ueta ommodai ;( t uni r iy oc dur tii s e mplye a eq s cc tons 2) he ve st ne ded t pr vi polci a pr dur s t ta es di c i i i n s pa a e y f om e o o de i es nd oce e ha ddr s s r m nato e r t l r haasme ;( t c an pr ed es ul beame edt pr det dealdpr es by r s nt 3) he omplit oc ur ho d nd o ovi he tie oc s whihe oye c ds e i oma andfr lr s utonoft rc ens ( t uni riy c mpl es oul e k nfr l o ma e ol i hei onc r ;4) he vest s dde inaeco itntyt whom i or la fr lc ansma bea ese ( )t houl sg t nsse l o nf ma nd o ma omplit y ddr s d; 5 he polc e a pr e ess d be a nde t pr deadefnii ma ii s nd oc dur houl me d o ovi i tve nnera tm ei whi nd i n ch 3 A g e m e , c w asf l e c e on O c obe 27,2005.Bas d on t O CR ' fndi , r e nt whi h uly xe ut d t r e he S i ngs Gil s ealeg t tDef nt f l ey c rii d t t Go n tt tt y wer i le pi l es ha enda s a s l e tfe o he ver men ha he en c inc wiht nec s ayprrquiie t obti ngfdealf ng,s iial j504of ompla e t he e s r ee sts o ani e r undi pecfc ly t Reha lt ton Act Gils e as a lgest ,e n a tre e i i o t Res uton he biiai . le pi lo le hat ve fe ntrng nt he ol i Ag e nt Def nda scontnue t be i non- ompla ewih t Re ltton Ac a wih r eme , e nt i do n c inc t he habiia i t nd t t Res uton Agr m e . H owe ,by pr oror r t Cour lm ied G il pi scl i s t t he ol i ee nt ver i de , he ti t les e' a m o he tmefa eco i onl up untlt OCR f i rm verng y i he ound De e nt i c f nda s n ompla e wih t i nc t he Re biia i A c . ha lt ton ts I . T he M oton f L e ve t A m e i G r e i Part I i or a o nd s ant d n Acc di t Gil s e a ba e on ar e oft pr pos d Thid Am e d Compl nt or ng o le pi nd s d eviw he o e r nde ai , t M o i f Lea t Am e s e t m a t f l ng a ndme s he ton or ve o nd e ks o ke he olowi me nt: 1.Al pa a a r aed t t a lga i a cli sofRea or Diz a W icox,a 1 r gr phs elt o he le tons nd am lt s a nd l s wela Di z' r t lai w o d ber m ove fom t compl nt l s a s e ai ton ul e d r he ai ; 2.Al pa a a r l tngt Reat Gil pi sca msa alegai ofg adei l ton 1 r gr phs e ai o l or les e' li nd l tons r nfa i by Def nt w oul be r m ove enda s d e d; 3.Relt sDi za W ic wo d ber m ove fom t syl oft c e; a or a nd lox ul e d r he t e he as 4.l woul becarfe a t whih oft De e nt e oye Gil pi a wha t d l ii d s o c he f nda s mpl d les e nd t De e n Ka a I .i a does f nda t pl n, nc s nd ; 5.Exitng f t pa ag a woul becarfed a a tona f c ua pa a a wo d si acual r r phs d l ii nd ddii l a t l r gr phs ul bead d t s de o uppor Gil pi scai st the a s d a 1oft Def ndant a t De rme t les e' l m ha dvie l he e s nd he pa t nt i tgai aet bec ee ( t co ai pr dur s dbea nde t rquie nvesi tons r o ompltd; 6) he mpl nt oce es houl me d o e r t uni riyt notf compl na si wrtngoft r ulsofi tgai ;a ( t he ve st o iy ai nt n ii he es t nvesi tons nd 7) he polc e s d s toutt whe eone c d ap a a i si ton' fndi . ii s houl e o r oul pe l n nve tga i s i ngs 5ti notcea fom t Se ond Ame d Compl i whe t OCR f I s l r r he c nde ant n he ound De e f ndan si t n c pla . How e r i w oul a a fom doc e t fl w ih t Cour t tt O CR m a om i nce ve , t d ppe r r um n s ied t he t ha he de is fndi o com pla e no l t rt n M a 24, 07. t i ng f i nc a e ha y 20 ofEduc tont tal Def nt ha t bei compla wih j504oft Re biiai Ac; ai ha l enda s d o n ince t he ha ltton t a nd 6.Exitng f ct pa ag a woul be carfe a a to lf t lpa a r phswoul si a ual r r phs d l iid nd ddii na acua r g a d bea t s ppo tGils e' cli t Dee nt c i dt bei no c inc wih j dded o u r le pi s am hat fnda s ontnue o n n-ompla e t 504 a trM a 2007. fe y De e nt a a t o f nda s ppe r o ppos t M oto f Le t Am e ba e s ey on t ls oft e he in or ave o nd s d ol l he a t he p o s da nd n s Be a s Fe e a Ru eo Cii Pr c d r 1 ()2 sae t thet o r rpo e me me t. c u e d r l l f v l o e u e 5 a( ) tts ha t d u t c s ul fe l g v la e(omne d wh nj sies rq ie 'a dDee a t h ven to p e ho d rey i e e v t n l e u tc o e u rs' n fnd n s a o p osd t e a ndme s Gil pi sM oton i gr nt d a t ame e s1 5,above. hes me nt, les e' i s a e so ndm nt Def nda sdo o e nt ppos a a ndme t t c e ny me nt o he ompli t woul efe tt al ge tme a nt hat d f c he le d i fn oft faudulnta i t Defnda soppos t a ndmentont g ou ;( )i i a rme he r e ctviy. e nt e he me wo r nds 1 t s n i ope atmptt s krc i ai ofapro Cou tor ra ( a ndmentwoul be mpr r te o ee e onsderton ir r de nd 2) me d f ie. Re r es ofwhe he Gil pi i ate ptng t cic utl ga dl s t r les e s tm i o r umve t r l r r ng nt he ues ega di r onsde a i t Cour m us de t moton a t t a e ec i r ton,he t t ny he i s o he m ndme sr ga di t tm efa e nt e r ng he i r m oft a lge y faudulnta tviy be a e a ndm e woul bef ie. he le dl r e c i t c us me nt d utl Re e oft pr pos ThidAm e d Compli s viw he o ed r nde a nt howst tt onl vi a i nsoft ha he y olto he Re a iiainAc t t l si ha pldwi p riuai aetevoainssto tb teOCR h bl to tha Gil pe s e t atc lrt r h ilto e u y h t e h / a rt i 2005 i si ton i o Gils e' compli a avi a i t tGil pi l a nedof he her nve tgai nt le pi s ant nd olton ha les e e r t o h aFr e ofl or tonAc ( A)rque t TheOCR ltrdeemi t tKU ha hrug e dom nf mai t FOl e s. ae tr ned ha d r me e t evi a i f e did hos oltons ound i t 2005 i si ton.Asar ul,t Cour pr vi l he d n he nve tga i es t he t e ousy l t tGil pi sFCA cli se a t poi twhe t OCR f undt tKU wasno l nge i ha les e' am nd t he n n he o ha o rn 6 t sCour ha pr vi l not t El nt Cicui r quie t tc am sm a under As hi t s e ousy ed, he eve h r t e r s ha l i de t FCA mus mee t pla ngr rme sofFe r Rul ofCi lPr dur 9( .Se DEhe t t he e di equie nt deal e vi oce e b) e 262a n. 1(uotng Unie St e c r f At nsv.Mcnte ,470F. 1 1 (1hCi. t 1 q i td ats x e ki l er 3d 350, 360 1t r 2006). ) vi ai ofj5O4oft Re biiai Ac.l KU wa nol ri vi ai oft olton he ha ltton t f s onge n olton he Re lt ton A c , he i w a no l rs itng faudul ntc a m s Fur he ,G il s e i not habiia i t t n t s onge ubm ti r e l i . t r le pi s t orgi s r e oft i or ton he ob ane t oug FOI The FCA ba scli snot he i nal ou c ? he nf ma i t i d hr h A. r am b o g tb s me n whoi no a o i ia s u c . e 31U. C. 37 ()4 ( ( 0 9 . ru h y o o e s t n rgn l o r e S e S. j 30e( )B) 2 0 ) Bec us Gils eha nota lgedi hi pr e Thid Am e d Com pl ntany s cii a e le pi s le n s opos d r nde ai pe fc al gai nsofnonle to compla e wih t Re biiai Ac outi oft pa iul r s touti t inc t he ha lt ton t sde he tc a s e n he OCR fndi a t i or ton r c i d fom t FOI r s , spr pos d a e i ngs nd he nf ma i e e ve r he A eque t hi o e m ndme i nt s f ie. utl W hieGils ea gue t ta 1oft Def nda sco i d t benonc l le pi r s ha 1 he e nt ntnue o ompla wih t int t he Re biia i Ac ,Gil s ehasofe e no s ii a l a i t s ha ltton t le pi frd pecfc leg tons o uppor t tsa e t Suc t ha t t men . h ge r la l a i ofco i ne a leg tons ntnued no c n- ompla a ei ufi i ntt me tt pl di ince r ns fc e o e he ea ng r q rment ofRul 9( .Gil pi alo ag st tt OCR onl deemi t tKU wa no e uie s e b) les e s r ue ha he y tr ned ha s l rnonc plan wih t Re biia i Ac a t ,he ei no evi et tt ot onge om i t t he ha ltton t nd,hus t r s denc ha he her Def nda sc edt rvi ai .Howe r Gils eha notpl wih pa tcul iy a e nt ur hei ol tons ve , le pi s ed t ri art ny vi a inss cii t e t rKa an,l .orKHEC. Theonl vi a i pl wih s cii t a e ol to pe tc o ihe pl nc y oltons ed t pe fciy r t vi atonsofKU s touti t OCR l tr us Gil pi hasnotpld a addii lor he ol i e n he ete .Th , les e e ny tona co i ng vi a i by t s t De e nt. Cons que l Gil s e' pr e a e e ntnui oltons he e wo f nda s e nty, le pi s opos d m ndm nt r a di contnui non- mpla ewih t Re biiai Ac i f ie. eg r ng i ng co i nc t he ha lt ton t s utl A c or ngl i i c di y, t s Q hever i oft FCA e f tve when t saci w a fld defne a So i nals ce' son he feci hi ton s ie i d n ûrgi our ' a i n i vi whoha die ta i pe s t ndi dual a s r c nd nde nden knowl e oft i or to on whi h t t edg he nf ma i n c he al tonsa eba e a ha vol a iy pr ded t i or ton t t Govemm e be or legai r s d nd s unt rl ovi he nf ma i o he nt f e flnga a tonunde t ss ci whih i bas ont i o ton. 31U. C.j3730( ( ( ii n ci r hi e ton c s ed he nfnnai ' ' S. e)4)B) ( 2009) . 6 ORD ERED t t Rel t ' M oto f r Le vet A m e a Fie Hi Thid Am e d ha a or s in o a o nd nd l s r nde Co an ( 3 ji GRANTED i p r.Reao s al ieaThidAme d dCo li ti mplit DE- 01 s n a t lt r h l fl r n e mpan,n ac or ncewih t sor ra no unde s a ,a as pa aedoc ten r byJune 1,2012, c da t hi de nd t r el s e rt ke ty DONE a ORDERED i M i , orda t s nd n ami Fl i , hi J I d yo Ma , 2012. a f y PATR I A .S TZ CI UN I TED STA TES D I STRI J D GE CT U cc: A1 c 1 ouns lofr cor e e d
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