Petition and Exhibits

E-FILED 2017 FEB 27 10:14 AM JOHNSON - CLERK OF DISTRICT COURT

IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY IOWA

JENNA POKORNY,

CASE NO. _____________

Plaintiff, v. UNIVERSITY OF IOWA, Defendant.

PETITION FOR CLASS CERTIFICATION, DECLARATORY JUDGMENT, AND FOR TEMPORARY AND PERMANENT INJUNCTIVE RELIEF

COMES NOW Plaintiff JENNA POKORNY, by and through her attorney, James C. Larew, LAREW LAW OFFICE, pursuant to Iowa Rules of Civil Procedure 1.261, and 1.1501, et seq., and for Plaintiff’s Petition for Class Certification, Declaratory Judgement, and for Temporary and Permanent Injunctive Relief, hereby states as follows: THE PARTIES 1.

Jenna Pokorny is a native Iowa resident from Des Moines, Polk County, Iowa, and is and has been an undergraduate student at the University of Iowa since 2015.

2.

The University of Iowa is an agency of the State of Iowa, located in Iowa City, Johnson County, Iowa. SUMMARY AND FACTUAL BACKGROUND

3.

Jenna Pokorny filed this lawsuit to protect herself and other similarly-situated peers and fellow undergraduate students at the University of Iowa who have been awarded, who have accepted, and who have acted in reliance upon the past and anticipated future receipt of certain financial scholarships including, but not necessarily limited to, Presidential Heritage Award Scholarships and Iowa Heritage Award Scholarships.

4.

The scholarship awards, each of them for $1,500 per year ($6,000 total value), were offered when Plaintiff and many other similarly-situated students were in the Fall of their senior year in high school when they were making choices as to where to attend colleges and universities and were specifically made as inducements to the recipients to choose the University of Iowa, and not some other venue, to pursue an undergraduate education.


5.

The scholarship awards were, and would continue to be, made on what the University of Iowa described as an “automatically renewed” basis, dependent solely on Plaintiff’s performance of two duties: that Plaintiff maintain continuous full-time enrollment at the University of Iowa and that Plaintiff maintain a minimum 2.0 University of Iowa cumulative grade point average.

6.

The specific terms and conditions of the awards, as set forth on University of Iowa letterhead stationery and signed by the Director of Admissions, stated as follows: “We are very pleased to award you a President’s Heritage Award [and Iowa Heritage Award] which is worth $6,000 ($1,500 per year for four years or until you complete your bachelor’s degree, whichever comes first). Your award will be automatically renewed each year provided you maintain continuous full-time enrollment at the University of Iowa and maintain a minimum 2.00 University of Iowa cumulative grade point average. The President’s Heritage Award [and Iowa Heritage Award] is granted independently of other merit-based awards at the university and may be added to other awards you receive.” See: Exhibits A and B, attached.

7.

Based on these promises, Plaintiff by-passed other educational opportunities and enrolled at the University of Iowa. While a student at the University of Iowa, she has received the promised scholarships for her first two years of study and has fully performed her duties, as specified in the Scholarship Awards: she has been enrolled on a continuous full-time basis and she has maintained a cumulative grade point average that exceeds 2.0.

8.

At the time that the University of Iowa offered, and Plaintiff accepted, the Scholarship Awards, no conditions related to any funding source—whether it be by benefactors, or by legislative appropriations, or otherwise—were placed upon them.

9.

Without prior notice and contrary to the express terms of her Scholarship Awards, Plaintiff received notice from Bruce Harreld, President of the University of Iowa, that the Iowa Heritage Award and Iowa President’s Award Scholarships had been “discontinued,” the “elimination” decisions guided by the University of Iowa’s “commitment to academic excellence,” and in response to a “decrease in funding” by the Iowa Legislature. See: Exhibits C and D, attached.


10.

Plaintiff believes that the University of Iowa’s action constitutes a breach of its moral covenant and its legal contract with her and with 2,500 or more other undergraduate students who are similarly situated to her—persons who may not have alternative financial resources or the ability to litigate in order to protect their own interest and cause the University of Iowa to uphold its own commitments.

11.

She, therefore, has filed this lawsuit both in her own name, but also in an effort to protect the interests of those whom this Court may determine should be Members of one or more Classes certified by this Court.

LEGAL CLAIMS CLAIM I – BREACH OF CONTRACT PLAINTIFF SEEKS AN ORDER FINDING THAT, BY GIVING NOTICE TO PLAINTIFF OF THE UNIVERISTY OF IOWA’S INTENT TO DISCONTINUE AND ELIMINATE ITS IOWA HERITAGE AWARD AND IOWA PRESIDENT’S HERITAGE AWARD SCHOLARSHIP PROGRAMS, AND TO DISCONTINUE SCHOLARSHIP AWARDS TO HER, THE UNIVERSITY OF IOWA HAS BREACHED ITS CONTRACTUAL DUTIES AND THAT PLAINTIFF SHOULD BE AWARDED DAMAGES AND THE PAYMENT OF ATTORNEYS FEES AND COSTS 12.

While she was considering a variety of options with respect to her undergraduate education, Defendant University of Iowa promised Plaintiff Jenna Pokorny that if she attended the University of Iowa to obtain her bachelor’s degree, and if she maintained a continuous full-time enrollment and maintained a minimum 2.00 cumulative grade point average, she would be awarded, on an annually automatically renewed basis, the amount of $1,500 per year, or $6,000 total amount over four years, under each of the two separate scholarship programs, for a total of $12,000 over four years: the Iowa President’s Heritage Award and the Iowa Heritage Award.

13.

In response to, and in reliance on, those two combined scholarship Award offers, Plaintiff forewent other undergraduate educational options, entered the University of Iowa, and has maintained the enrollment status and grade point average required by these two Award Scholarship programs.

14.

The University of Iowa has unilaterally breached its two separate and binding promises to Plaintiffs by announcing its decision to discontinue and to eliminate these two separate Award Scholarship programs.


15.

Said breach will cause Plaintiff to suffer liquidated damages in amounts not less than $1,500 per year for two years for each of the respective Scholarship Programs or a total of $6,000.

16.

Said breach will also cause Plaintiff to suffer consequential damages, including attorney fees, costs and expenses related to bringing this action.

WHEREFORE, Plaintiff Jenna Pokorny seeks all appropriate Orders: finding Defendant University of Iowa in breach of its contractual duty and awarding to Plaintiffs liquidated damages, consequential damages by way of attorneys and the costs of this action, and all other relief to which she is lawfully entitled under the premises.

CLAIM II – INJUNCTIVE RELIEF PLAINTIFF SEEKS TEMPORARY AND PERMANENT INJUNCTIVE RELIEF FROM DEFENDANT UNIVERSITY OF IOWA’S ANNOUNCED PLAN TO DISCONTINUE AND ELIMINATE SCHOLARSHIP PROGRAMS THAT WERE THE SOURCE OF CONTRACTUALLY-PROMISED SCHOLARSHIP AWARDS 17.

Pursuant to Iowa Rules of Civil Procedure 1.403, Plaintiff respectfully prays for an ORDER, prescribing Notice to be served by Plaintiff upon Defendant University of Iowa, and setting an immediate hearing so that Plaintiff may present evidence and argument in support of her prayer for a Preliminary Restraining Order prohibiting the University of Iowa from discontinuing and/or eliminating the Iowa Heritage Award and/or the Iowa President’s Heritage Award to the extent that such action would have the effect of allowing the University of Iowa to breach its contractual promises to Plaintiff and other similarly-situated University of Iowa undergraduate students who were promised, and who acted in reliance upon such promises, that if they maintained full-time enrollment statuses and if they maintained a cumulative grade point average of at least 2.00, their annual Scholarships would be automatically renewed in the amount of $1,500 per year.

18.

After such hearing is held, Plaintiff prays that the Court FIND that Plaintiff has set forth a prima facie case and that Plaintiff is likely to prevail on the merits of her claim for permanent injunctive relief and ORDER preliminary injunctive relief against the University of Iowa, thereby prohibiting and proscribing the University of Iowa from breaching its contractual promises, as described herein as awards of scholarships, until such time as Plaintiff’s claims can be fully heard and considered.


WHEREFORE Plaintiff Jenna Pokorny prays that the Court issue and Order prescribing Notice to be made upon Defendant University of Iowa, setting a time and date for a hearing and that, upon such a hearing, enter further Orders setting for a Preliminary Restraining Order, without bond, preventing the University from taking any action to refuse further payments of money owed to Plaintiff by Award of Scholarship funds under the Iowa Heritage Award and Iowa President’s Heritage Award programs. WHEREFORE Plaintiff Jenna Pokorny prays that the Court enter any and all other ORDERS that the Court determines are fair and just under the circumstances.

CLAIM III- DECLARATORY JUDGMENT PLAINTIFF SEEKS A DECLARATORY JUDGEMENT THAT, AS APPLIED TO PLAINTIFF, THE UNIVERSITY OF IOWA ’S CLAIM OF RIGHT TO DISCONTINUE AND ELIMINATE SCHOLARSHIP PROGRAMS AND, THEREBY, TO TERMINATE ITS CONTRACTUAL OBLIGATIONS OWED TO PLAINTIFF AND SIMILARLY SITUATED PERSONS TO PAY SCHOLARSHIP AWARDS UNDER THE IOWA HERITAGE AWARD AND IOWA PRESIDENT’S HERITAGE AWARD PROGRAMS 19.

As applied to Plaintiff and other similarly situated undergraduate students, the University of Iowa’s decision to discontinue and eliminate its Iowa President’s Heritage Award and Iowa Heritage Award programs, while such Programs are still obligated to pay scholarships in defined amounts constitutes a breach of contract, and, thereby causing Plaintiffs and other similarly-situated students to suffer damages and losses.

20.

Plaintiff seeks all appropriate Orders declaring that the University’s conduct constitutes an unlawful breach of contract and awarding to Plaintiff all relief to which she may be entitled under the circumstances, including reasonable legal costs and attorney’s fees.

WHEREFORE Plaintiff Jenna Pokorny prays for an Order declaring that the Defendant University of Iowa’s discontinuation and elimination of the Iowa Heritage Award and Iowa President’s Heritage Award Scholarship Programs, including any and all future payments owed to Plaintiff under the University of Iowa’s Awards to her constitute an impermissible breach of contract entitling to Plaintiff and all similarly-situated persons all relief to which Plaintiff and others may be entitled under the circumstances, including liquidated damages and consequential damages such as reasonable costs and attorneys’ fees.


CLAIM IV CLASS ACTION 21.

Plaintiff brings this action under Iowa Rule of Civil Procedure 1.261 et seq. The University of Iowa’s discontinuation and revocation of the Iowa President’s Heritage Award and Iowa Heritage Award Scholarship Programs adversely affects 2,500 or more undergraduate students at the University of Iowa.

22.

Plaintiff brings this action to secure a judgment finding that the University of Iowa’s actions, as described herein, as applied to Plaintiff and any other similarly-situated subclasses, are impermissible acts that violate Iowa law, and issuing an injunction against the unilateral breach of the Scholarship Award programs described herein, ordering the University of Iowa to such amounts as have already been contractually promised, when due to the injured parties, and awarding consequential damages, including attorney’s fees and costs.

23.

Plaintiff further seeks reasonable litigation expenses and attorney’s fees pursuant to Iowa Rule of Civil Procedure 1.275(4) as part of the request for declaratory and equitable relief contained herein.

24.

In accordance with Iowa Rules of Civil Procedure 1.262 and 1.263, this action is appropriate for class treatment.

25.

The proposed Members of the Class or Classes are so numerous as to make joinder impractical. Litigating each of those claims separately would impose undue financial burdens on class members and undue administrative burdens on the Court.

26.

The question of whether the University of Iowa has breached a contractual duty owed to Plaintiff and other similarly-situated students by discontinuing and eliminating the Iowa President’s Heritage Award and Iowa Heritage Scholarship Awards, after promises have been made under them upon which Plaintiffs and others have reasonably and detrimentally relied, is equally applicable to all persons to whom such Awards have been made under these program.

27.

Pursuant to Iowa Rule of Civil Procedure 1.261 et seq., in each instance, a class action would be the most fair and efficient adjudication of this controversy for several reasons, including, but not limited to: a. It would serve the efficient use of the judiciary’s resources.


b. It would allow individual students to obtain just relief in a manner that would be unavailable to them if they were required to prosecute and pay costs and attorney’s fees for separate and individual lawsuits. c. It would assure that inconsistent verdicts and judgments were not reached upon nearly identical issues of fact and law, thereby providing clarity to the University of Iowa and to Plaintiffs and other similarly situated students of the University of Iowa. 28.

Plaintiff’s interests are consistent with, and not at all antagonistic to, the interests of other similarly situated parties; Plaintiff is therefore adequate representative of the classes. Plaintiff will protect the interests of the classes and ensure that counsel with knowledge of Iowa law will serve as class counsel.

WHEREFORE, Plaintiff prays for an ORDER certifying one or more classes, as described herein, and affirming Plaintiff as Class Representative, and awarding all additional and further relief as may be needed to allow this matter to proceed as a class action. WHEREFORE, Plaintiffs pray for an ORDER awarding damages from Defendant University of Iowa to Plaintiffs and to each Member of the Class(es), as certified, in an amount equivalent to the liquidated amounts contractually promised to each Class Member under the Programs described herein and awarding consequential damages, including the costs of this action and attorney’s fees as deemed appropriate by the Court.

CONCLUSION Plaintiff respectfully prays for all appropriate: ORDERS allowing for temporary and permanent injunctive relief; ORDERS declaring the unlawfulness of the University of Iowa’s conduct; ORDERS allowing for the certification of one or more Classes; and final ORDERS and DECREES establishing all appropriate relief for Plaintiff and Class Members, for the costs of this action and for attorney’s fees, and for all other such relief as the Court may determine is just and fair under the premises.



Exhibit A

Iowa Heritage Award Letter



Exhibit B

President’s Heritage Award Letter



Exhibit C

Iowa Heritage Award Elimination Letter



Exhibit D

President’s Heritage Award Elimination Letter


Petition and Exhibits

Recommend Documents