Wilson v. Career Education Corp.

Federal 7th Circuit Court
Civil Court
Case Number: 
No. 12-2383
Decision Date: 
August 30, 2013
Federal District: 
N.D. Ill., E. Div.
Affirmed and reversed in part and remanded
Dist. Ct. erred in granting defendant’s motion to dismiss plaintiff-employee’s putative class action alleging that defendant-school breached terms of compensation plan by terminating plaintiff’s ability to earn future bonus for students already recruited by plaintiff for period of time up to July, 2011. Instant complaint stated viable breach of contract claim based on implied covenant of good faith and fair dealing, where, although federal regulations prohibited defendant from giving plaintiff instant recruiting bonus as of July, 2011 and instant plan gave defendant right to terminate bonus at any time, defendant’s discretion to terminate bonus prior to effective date of federal regulation was limited by reasonable expectations of parties. Moreover, defendant’s contention that termination was made in effort to comply with federal regulation raised issue as to whether defendant acted in contravention to parties’ reasonable expectations, where defendant was not required to stop giving recruitment bonuses at time of instant termination. (Partial dissent filed.)