Adjunct Law Prof Blog

Editor: Mitchell H. Rubinstein
New York Law School

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Sunday, September 26, 2010

NYU Did Not Breach Implied Contract By Withholding MBA from Convicted Felon

Rosenthal v. NYU, ___F.Supp.2d____(S.D.N.Y. Sep't. 13, 2010), is an interesting case. The court holds that NYU did not breach an implied contract by withholding MBA from a confessed inside trader. As the court stated:

The University Bylaws (the "Bylaws") expressly confer upon the faculty of each school the authority to determine "the standards of academic achievement to be attained for each degree offered" and "to certify to the President, for recommendation to the Board, qualified candidates for degrees and certificates."39While the Stern faculty's decision to withhold Rosenthal's degree followed the form of a disciplinary proceeding, it determined pursuant to its duly-conferred authority that Rosenthal was not fit to receive a degree on the basis of his admitted felonious conspiracy to commit securities fraud. That decision was fully within the faculty's power and discretion.40 It was neither arbitrary nor capricious. Thus, Rosenthal's contentions are entirely without merit on that ground alone. While his procedural arguments are beside the point, the Court nevertheless turns to them in an abundance of caution.

Mitchell H. Rubinstein

http://lawprofessors.typepad.com/adjunctprofs/2010/09/nyu-did-not-breach-implied-contract-by-withholding-mba-from-convicted-felon.html

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