Nova University v. Board of Governors of University of North Carolina

287 S.E.2d 872 (1982)

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Nova University v. Board of Governors of University of North Carolina

North Carolina Supreme Court
287 S.E.2d 872 (1982)

Facts

Nova University (Nova) (plaintiff) was a nonprofit corporation organized under the laws of the state of Florida with a traditional campus located in Fort Lauderdale, Florida. Nova began offering graduate- and doctoral-level courses to students residing in other states with the intent to confer those students their degrees from its Florida campus. The students formed small clusters that met regularly in their respective locations. The clusters were taught by professors from traditional universities. The students were required to attend summer institutes at the Nova campus in Florida, where they would eventually receive their degrees. Nova sought to offer its curriculum to students in North Carolina. North Carolina law provided that the Board of Governors of the University of North Carolina (the board) (defendant) had the authority to regulate nonprofit institutions of higher education that conferred degrees in North Carolina. In order to confer degrees within the state, an institution of higher education was required to apply for and receive a license to do so from the board. Nova did not believe it was subject to the board’s jurisdiction, because it did not seek to confer degrees in North Carolina. However, in an attempt to act in good faith, Nova applied for a license, which was denied by the board. Nova filed a lawsuit against the board, seeking a declaratory judgment that the board had no authority to license its teaching within the state. The trial court denied Nova’s motion for summary judgment but granted Nova’s motion to extend time to conduct discovery. Both parties filed petitions for certiorari to the court of appeals. The court of appeals ruled that the board did not have the authority to regulate Nova’s teaching in the state and reversed the trial court’s denial of Nova’s motion for summary judgment. The board appealed.

Rule of Law

Issue

Holding and Reasoning (Exum, J.)

Dissent (Carlton, J.)

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