U.C. ordered to pay $40M refund to students

About 40,000 current and former University of California students are due to get $40 million in refunds as a result of an action by the state Supreme Court on Wednesday.

The high court in San Francisco refused to hear the university's appeal of a Court of Appeal decision that concluded the university broke promises not to raise student fees in 2003.

The action means the appeals court ruling, issued in San Francisco in November, is the final decision in the case.

The financial compensation includes both $28 million in refunds and about $12 million in interest.

The largest portion, about $33 million in refunds and interest, is due to about 9,000 students in professional schools such as law, medicine and business whose fees were raised in 2003.

The appeals court said the university violated an implied contract it created when it said on its Web site and some catalogs until 2003 that professional degree fees would remain constant during a student's enrollment.

The professional degree fees are in addition to the educational fees paid by all UC students. The university, citing fiscal problems, began raising the professional fees substantially in 2003.

Another $7 million in refunds and interest is due to 31,000 undergraduate and graduate students whose educational fees were raised in 2003 after they had paid their bills for the spring or summer term.

The court said the paid bills created a contract for that term and the educational fees could not be increased until the following term.

UC spokesman Ricardo Vazquez said, “We're disappointed. It certainly has a financial impact.”

Vazquez said, “The university is looking at its options and consulting with the university community.”

Bay City News

Bay Area NewsLocal

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

A health care worker receives the Moderna COVID-19 vaccine. (Go Nakamura/Getty Images/TNS)
City sets ambitious goal to vaccinate residents by June

Limited supply slows distribution of doses as health officials seek to expand access

U.S. President-elect Joe Biden and Jill Biden arrive at Biden's inauguration on the West Front of the U.S. Capitol on January 20, 2021, in Washington, DC.  (Win McNamee/Getty Images/TNS)
Joe Biden issues call for ‘unity’ amidst extreme partisan rancor

‘I will be a president for all Americans,’ he says in inauguration speech

MARIETTA, GA - NOVEMBER 15: Democratic U.S. Senate candidates Jon Ossoff (R) and Raphael Warnock (L) of Georgia taps elbows during a rally for supporters on November 15, 2020 in Marietta, Georgia. Both become senators Wednesday.  (Jenny Jarvie/Los Angeles Times/TNS)
Vice President Harris swears in senators Padilla, Warnock, Ossoff

New Democratic senators tip balance of power in upper legislative house

President Joe Biden plans to sign a number of executive orders over the next week. (Biden Transition/CNP/Zuma Press/TNS)
Biden signals new direction by signing mask order on his first day in office

President plans ambitious 10-day push of executive orders, legislation

Kamala Harris is sworn in as vice president by U.S. Supreme Court Associate Justice Sonia Sotomayor as her husband Doug Emhoff looks on at the inauguration of U.S. President Joe Biden on the West Front of the U.S. Capitol on Jan. 20, 2021, in Washington, D.C. (Alex Wong/Getty Images/TNS)
A new turn in history: Kamala Harris sworn in as 49th vice president

Noah Bierman and Melanie Mason Los Angeles Times Kamala Devi Harris, born… Continue reading

Most Read