In Rynasko v. New York University, 63 F.4th 186 (2nd Cir. 2023), the U.S. Court of Appeals for the Second Circuit potentially revived a putative class action against NYU seeking a partial refund of tuition fees due to NYU’s response to the COVID pandemic. In an opinion authored by Circuit Judge Beth Robinson, and joined-in-part by Circuit Judges Michael Park and Barrington Parker, the majority affirmed the district court’s dismissal of Christina Rynasko’s complaint, but reversed the district court’s refusal to grant leave to amend the complaint, finding that the proposed amendment—to add another lead plaintiff who had standing—would not be futile. In so doing, the Second Circuit joined the Seventh, Ninth, and D.C. circuits in recognizing the plausibility of implied breach of contract claims brought by students seeking partial tuition reimbursements in the COVID-19 context.

The District Court’s Decision

The plaintiff’s complaint against NYU alleged state law claims for breach of contract, breach of implied contract, unjust enrichment, money had and received, and conversion. The crux of th eplaintiff’s complaint was that NYU had failed to deliver to her daughter the educational services, facilities, access, and opportunities for which the plaintiff had paid as a result of its response to the COVID pandemic. NYU moved to dismiss, arguing that Rynasko lacked standing to bring her claims because she had not suffered any cognizable injury based on denial of in-person courses, activities and services to her daughter.