Potts v. Center for Excellence

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From 2009 until 2012, Debbi Potts worked as the campus director of the Cheyenne, Wyoming campus of CollegeAmerica Denver, Inc. (CollegeAmerica), a predecessor of the Center for Excellence in Higher Education, Inc. (the Center). Potts alleged she resigned because CollegeAmerica’s business practices were unethical. In particular, she alleges that CollegeAmerica violated its accreditation standards and “actively deceiv[ed]” its accreditor to maintain accreditation. In September 2012, Potts and CollegeAmerica entered a written agreement by which CollegeAmerica agreed to pay Potts $7,000 and support her unemployment claim, and Potts agreed to (1) “refrain from personally (or through the use of any third party) contacting any governmental or regulatory agency with the purpose of filing any complaint or grievance,” (2) “direct any complaints or issues against CollegeAmerica . . . to CollegeAmerica’s toll free compliant [sic] number,” and (3) “not intentionally with malicious intent (publicly or privately) disparage the reputation of CollegeAmerica.” Despite the agreement, Potts disparaged the Center in an e-mail she sent to another former employee. After learning of this, the Center sued Potts in Colorado state court for violating the agreement, seeking the $7,000 it had paid to Potts under the agreement. In February 2013, Potts sent a written complaint to the Center’s accreditor, the Accrediting Commission of Career Schools and Colleges (ACCSC), concerning the Center’s alleged deceptions in maintaining its accreditation. After learning this, the Center amended its state-court complaint to add breach of contract. In response, Potts sued the Center in federal district court, alleging that the Center’s state claim violated the False Claims Act’s anti-retaliation provision. The Tenth Circuit considered whether this anti-retaliation statute applied when no retaliatory discrimination occurred until after employment ends. The Court concluded that it did not, and affirmed the district court’s dismissal of Potts’s retaliation claim. View "Potts v. Center for Excellence" on Justia Law