Perusing recent opinions, we came upon a bankruptcy case in the First Circuit of some interest, In re: Palladino 17-1334.
Steven and Lori Palladino sent their child, Nicole, to Sacred Heart University, a private Roman Catholic university in Connecticut, whose values, according to its web site, include pursuit of truth, promotion of the common good, and recognition of the dignity and worth of every being. The school “embraces a vision for social justice and educates students in mind, body and spirit to prepare them personally and professionally to make a difference in the global community.” (Sacred Heart University Mission Statement)
Unfortunately, Steven and Lori were also running a multimillion dollar Ponzi scheme at the time. They were convicted of fraud and the SEC obtained a $9.7 million civil judgment against them. They filed for Chapter 7 bankruptcy, and the trustee sought to claw back $64,000+ in tuition they paid to Sacred Heart for Nicole’s education over a