Legal Cases & Verdicts

Scott v. Savers Prop. & Cas. Ins. Co., 663 N.W.2d 715 (2003)

If you have ever had to explain why you had to cancel a student's full scholarship, you may sympathize with the staff at the University of Alaska especially because the mistake was not theirs.  High school student Ryan Scott and his parents, Kathy and Patrick Scott, brought suit against his school district and its insurer.  They claimed that Dave Johnson, a guidance counselor at Stevens Point Area Senior High School, provided them with inaccurate information about National Collegiate Athletic Association (NCAA) student athlete scholarship eligibility requirements.  As a result, Ryan lost a full hockey scholarship to the University of Alaska (UOA).

Ryan and his mother met with Johnson during his senior year of high school to obtain help in selecting courses to meet the NCAA requirements.  Johnson incorrectly advised Ryan and his mother that a Broadcast Communication course would meet the English requirement.  After graduating from high school, Ryan played junior hockey in Iowa and was offered a full four-year scholarship to UOA.  Ryan officially accepted the scholarship offer.  The scholarship was contingent upon receipt of an eligibility certification from the NCAA.  The NCAA determined Ryan was not eligible for a Division I student athlete scholarship because Broadcast Communication was not an approved core course in English. The University of Alaska rescinded its scholarship. The family sought damages for the loss of the scholarship and other expenses incurred claiming negligence, breach of contract, and promissory estoppel (when the court treats a false statement the listener relied upon to their detriment as an enforceable promise).  The circuit court dismissed the claims and the Court of Appeals affirmed the decision.  The Scott's appealed to the Supreme Court of Wisconsin which also affirmed the decision.  The court found that despite the school counselor's negligence and the harm suffered by Ryan, the school system was immune from suit for negligence under state law.  The court found that no contract had ever been formed between the school district and the Scott's and dismissed the contract claims.  The court found that promissory estoppel was inappropriate.  As a result, Ryan and his parents lost their suit against the school and its insurer.  This case suggests that, at least in the State of Wisconsin, public schools may be immune from lawsuits for such negligence.