Ryan, et al. v. Hidden Lake Academy, Inc., et al.

On September 11, 2006, the plaintiffs filed a complaint against the Defendants. Plaintiffs alleged, in sum, that Defendants breached their obligations to provide properly certain educational and therapeutic services, and imposed certain excess fees. Plaintiffs asserted four claims: breach of contract against HLA, Inc.; breach of the implied covenant of good faith and fair dealing against HLA, Inc.; violation of Georgia's Fair Business Practices Act, O.C.G.A. § 10-1-390, et seq. (the "FBPA") against each Defendant; and unjust enrichment against each Defendant. Plaintiffs sought monetary relief including a return of a portion of the tuition they paid to the school, a declaration that the indemnification provision in HLA's enrollment contract is unenforceable under Georgia law, injunctive relief, and disclosure to parents and caregivers concerning both the school's financial charges and the school's practices regarding strip-searching students.

On November 8, 2006, each Defendant filed answers and defenses denying plaintiffs' claims. In addition, defendant HLA, Inc., which is the only Defendant who was a party to plaintiffs' enrollment agreements, also asserted a counterclaim against the four original plaintiffs. HLA, Inc.'s counterclaim asserted that these plaintiffs are contractually obligated to reimburse HLA, Inc. for all costs and attorneys' fees HLA, Inc., and perhaps the other Defendants, incur as a result of this litigation.

Beginning in November 2006, the parties brought several motions. In particular, on November 16, 2006, plaintiffs filed a motion seeking permission to proceed anonymously; on November 21, 2006, defendants filed a motion for judgment on the pleadings; on November 28, 2006, plaintiffs filed a motion to dismiss defendant HLA, Inc.'s counterclaim; on December 8, 2006, plaintiffs filed a motion to strike an exhibit accompanying defendants' motion for judgment on the pleadings; and on December 11, 2006, plaintiffs filed a motion for class certification. Each of these motions was fully briefed by the parties. On January 31, 2007, a hearing was held before the Court concerning each motion. In addition, plaintiffs also filed in connection with their motion for class certification: a motion and incorporated memorandum of law regarding scheduling and a limited lifting of the discovery stay on February 6, 2007; a motion and incorporated memorandum of law for leave to file their second amended complaint on February 16, 2007; a notice of supplemental authority on February 23, 2007; and a supplemental submission regarding FBPA claims on May 7, 2007.

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