A receiver has filed an emergency motion seeking approval for the sale of Western State College of Law to Westcliff University, both of which are in Orange County.
The future of the law school in Irvine, Calif., has been uncertain for months as a result of its parent company’s financial woes that led to the receivership currently playing out in Ohio federal court.
Receiver Mark Dottore said his July 24 motion was filed on an emergency basis because there are deadlines quickly approaching that must be met for Western State to keep operating.
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“The school cannot continue as an educational institution for even a short time without financial assistance, and there is no one to provide it,” Dottore’s motion states. “Thus, time is of the essence for the court’s approval of the sale.
“And perhaps most important, if [Western State] ceases to operate as an educational institution, its students will be unable to complete their programs of study and they will be detrimentally hurt,” the motion continues.
The purchase price is just $1, though Westcliff will acquire all of the assets Argosy University used in the operation of Western State.
Westcliff, which offers undergraduate and graduate degree programs in business and education, has pledged as part of the sale to enter into an agreement to teach-out Western State students. The teach-out is scheduled to begin August 1.
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Westcliff also needs to secure various approvals for the purchase from different government and accrediting bodies, including the U.S. Department of Education, American Bar Association, and the WASC Senior College and University Commission (WSCUC).
“The school’s financial situation is endangering its ability to maintain accreditation, and the USDE, WSCUC and the ABA are carefully and strictly monitoring the progress of this sale to ensure that the students are properly cared for,” Dottore wrote. “The accrediting agencies are prepared to take swift and appropriate action if the sale cannot be closed.”
In addition, Westcliff must enter into a lease agreement or have the current lease for Western State assigned to it so it can begin the teach-out. That task could be easier said than done given a rent dispute between the receiver and Western State’s current landlord, Cal State Fullerton.
Lyle Moran is a freelance writer in San Diego who handles both journalism and content writing projects. He previously reported for the Los Angeles Daily Journal, San Diego Daily Transcript, Associated Press, and Lowell Sun. He can be reached at [email protected] and found on Twitter @lylemoran.