Keams v. Tempe Technical Institute, Inc.
United States District Court for the District of Arizona
993 F. Supp. 714 (1997)
- Written by David Bloom, JD
Facts
Tempe Technical Institute, Inc. (TTI) (defendant) was a for-profit vocational school that specialized in training of nonmedical personnel. TTI offered financial assistance to students who sought to finance their education. TTI provided loan applications to the students and helped the students complete the loan applications that were submitted to Zions National Bank (Zions) (defendant) for loan processing and issuance. Zions did not authorize TTI to assist the students with the applications, nor did TTI disclose to the students that TTI was so authorized. TTI closed after encountering financial difficulty and filed for bankruptcy. Grace Keams was a member of a class of students (collectively, Keams) (plaintiffs) who sued TTI, alleged that TTI was a sham and failed to deliver on promises of an education. Keams also sued Zions, claiming that Zions was vicariously liable because, by subsequently processing and issuing the loans to the students, Zions had ratified TTI’s assistance in the loan applications. Zions moved for summary judgment, arguing that it had not ratified TTI’s prior unauthorized acts of assisting the students with the loan applications.
Rule of Law
Issue
Holding and Reasoning (Silver, J.)
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