Education – Chapter 93A

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Where a G.L.c. 93A claim has been brought against a nonprofit theological seminary based in Washington, that claim must be dismissed because the seminary was not engaged in trade or commerce.

“Plaintiff High Expectations LLC (‘High Expectations’) brought this action in diversity against Defendant KPCA Northwestern Presbyterian Theological Seminary (‘KPCA’). …

“High Expectations argues that KPCA is ‘engaged in a profit-oriented visa fraud scheme’ and generating revenue so as to be considered engaging in trade or commerce. … High Expectations cites the Massachusetts Supreme Judicial Court’s opinion in Linkage Corp. v. Trs. of Bos. Univ., which found a university to be engaging in trade or commerce for purposes of Chapter 93A. 425 Mass. 1, 25, 679 N.E.2d 191 (1997). …

“… The underlying conduct at issue is the enticement and enrollment of international students to KPCA’s degree programs in biblical studies and divinity. Such enrollments are core to its ‘primary purpose … to nurture leaders for the church and society through training in piety and devotion, academic research and study, and praxis of the Gospel.’ …

“… Even if KPCA fraudulently underreports its tuition revenue by the millions, as High Expectations alleges, that does not change the character of the revenue source: enrollment of students in degree programs that are core to KPCA’s mission. …

“Accordingly, the court need not consider KPCA’s alternative arguments as to High Expectations’ failure to state a claim under Chapter 93A. Where KPCA was not engaged in trade or commerce as required to state a claim under Chapter 93A, KPCA’s motion to dismiss the Chapter 93A claim is granted.”

High Expectations LLC v. KPCA Northwestern Presbyterian Theological Seminary, et al. (Lawyers Weekly No. 02-477-25) (11 pages) (Talwani, J.) (Civil Action No. 1:24-cv-11225-IT) (Sept. 4, 2025).

Click here to read the full text of the opinion.