Students may sue charter school under California False Claims Act

Law Reporter, Jun 2004

Wells v. One2One Learning Found., 10 Cal. Rptr. 3d 456 (Ct. App. 2004).

Students of a charter school may sue die school and its operators under the California False Claims Act (FC-A), CaI. Gov. Code §§ 12650 et seq., a California appellate court held.

Here, several students enrolled in charter schools. The schools allegedly collected over $20 million in educational Rinding annually from the state, but did not provide the instruction and educational materials for which those funds were intended.

The students and their parents sued the charter schools, their operators, and the school districts that authorized their charters, alleging violations of the FCA, among other claims. The trial court dismissed, holding that each of plaintiffs' claims is barred under California case law barring claims for educational malfeasance against public schools.

Reversing in part, the appellate court held that plaintiffs' FCA claim is not barred. The FCA claim is not for educational malfeasance, the court said. An FCA claim does not raise issues of classroom methods, quality of learning, or effectiveness of teaching, the court observed, but has the purpose of protecting die local government fisc. Thus, the claim does not challenge the quality of the education the students received, but alleges defendants wrongfully obtained government funds. Plaintiffs do not seek damages for inadequate education, the court noted, but rather seek return of government money to the government.

Accordingly, the court remanded.

Plaintiffs' Counsel

Michael S. Sorgen, San Francisco, Cal.

Claudia A. Baldwin, Oakland, Cal.

Allan Haley, Nevada City, Cal.

John G. Bilheimer, Nevada City, Cal.