University of California system loses tuition-hike appeal

Students fighting a 2003 tuition hike at the University of California are one step closer to getting refunds.

In November, the California Court of Appeals upheld a lower court decision that found the university had breached its contract with continuing professional students when it raised their fees. The appellate court found that the increase ran counter to the university's promise, posted on its Web site and printed in its catalogs, that fees would not be raised for the duration of students' enrollment.

The court also refused to reduce the $33.8 million, plus interest, in damages awarded to the 9,000 affected students. Of this group, 2,571 were medical students. The American Medical Association/State Medical Societies Litigation Center and the California Medical Assn. had filed a joint friend-of-the-court brief on students' behalf.

Danielle Leonard, plaintiff co-counsel, said the eight students who prompted the class-action lawsuit felt vindicated. "Everyone is thrilled," Leonard said. "It was a unanimous, thorough decision."

Ricardo Vazquez, a university spokesman, said the school was disappointed with the decision and that its general counsel was analyzing whether the university would petition for a rehearing in the California Court of Appeals or submit an appeal to the Supreme Court of California. The university has said in the past that returning the tuition difference to students in the class-action lawsuit could force it to increase tuition for existing students.

The case is based on a 2003 mid-year tuition hike in the UC system, which includes five medical schools. Students in professional degree programs saw increases of $400 to $1,700 per semester. One tuition hike was retroactive, with students receiving a second bill for the 2003 spring semester after many had paid their original bill in full.

The AMA contends that high medical school debt substantially impacts physicians' career choices and may deter many from working among the underserved. Abrupt mid-year tuition hikes, the AMA said, besides adding to students' total debt, are particularly difficult, because students may not be able to renegotiate their loans.