The competition between southern California law schools just got a lot more complicated. The Southern California Institute of Law recently filed suit against TCS Education System, claiming that the company is unlawfully affiliated with Santa Barbara and Ventura Colleges of Law.
The lawsuit, which was filed on Oct. 25, claims that TCS used confidential information that it obtained in talks with Southern California in order to enter into a business agreement with Santa Barbara and Ventura Colleges of Law. TCS is a Chicago-based nonprofit corporation that manages colleges and elementary schools with the goal of better financial management, technology innovations and improved accreditation prospects. Last year, Southern California and TCS were in affiliation talks when the school turned over items such as its marketing plan, salary information and its state bar registration filings. A merger never occurred, however, and Southern California learned shortly thereafter that TCS would partner with its sole competitor.
The Southern California Institute of Law and Santa Barbara and Ventura Colleges of Law are the only two law schools in the area that offer part-time, evening programs. Neither is accredited by the American Bar Association or the Western Association of Schools and Colleges, but students are eligible to take the state bar exam.
In the suit, Southern California noted that TCS “misappropriated plaintiff’s most guarded secrets and information in violation of a binding confidentiality agreement and secretly used the information to affiliate with the plaintiff’s sole competitor in the region. Armed with the stolen information, the defendants recently announced their ‘deal,’ which is calculated to kill of competition in the region, destroy the plaintiff’s business and increase the cost of tuition.”
Southern California fears that given all of TCS’s knowledge, a TCS partnership with Santa Barbara and Ventura would put them out of business almost indefinitely. Southern California houses only 100 students as opposed to Santa Barbara and Ventura’s 250 students.
“It’s a supercompetitive and unfairly competitive new species of fish in our pond,” said attorney Geroge Shohet, who is representing Southern California. “They have all of the law school’s most careful thinking, strategy and plans. They might as well have a front-row seat in the dean’s brain.”
Among claims against the defendants include violating the Sherman Act, and breach of contract. Santa Barbara and Ventura College of Law have yet to be served the lawsuit.
