National Career College, Inc. v. Margaret Spellings

MEMORANDUM

Plaintiffs-Appellants appeal the district court’s order granting summary judgment to the Secretary of the U.S. Department of Education (“DOE”) and denying Plaintiffs’ cross-motion for summary judgment. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

Allen Mirzaei (“Mirzaei”) and his two sons own 100% of National Career College, Inc., doing business as Hawaii Business College (“HBC”). HBC had been approved by the DOE to participate in Title IV federal financial aid programs before Mirzaei purchased it. When Mirzaei purchased 100% of HBC in 2006, it triggered a “change in control” of HBC, and thus HBC was required to reapply with the DOE to have HBC deemed eligible to participate in Title IV federal financial aid programs. The DOE denied HBC’s request for reapplication, citing Mirzaei’s previous breach of his fiduciary duty when he owned another college.

We review the district court’s legal determinations de novo, and we review the agency’s action to determine if it was “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law.” 5 U.S.C. § 706 (2)(A); Center for Biological Diversity v. Nat’l Highway Traffic Safety Admin.,…