CollegeAmerica embroiled in local legal battle
CollegeAmerica Denver has sued a Fort Collins woman for allegedly denigrating its name despite signing a "disparagement clause."
Attorneys for the parties appeared at the Larimer County Justice Center on Wednesday for a hearing in the civil lawsuit that has languished in county court for more than three years and accrued more than 100 filings.
CollegeAmerica — owned by the Center for Excellence in Higher Education and which has campuses in Colorado, Arizona, Idaho and Wyoming — submitted its original complaint in March 2013, alleging that Fort Collins resident Debbi Potts violated a 2012 written agreement she had with the institution.
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It alleges that Potts wrote disparaging things about the institution on LinkedIn and in other communications, including calling various institution officials names such as "old hag" and "crazy."
Potts, the former director of CollegeAmerica's Cheyenne campus, appeared in court Wednesday as well but remained silent throughout the hearing.
Potts said she quit her job "under duress" in July 2012, according to court records. She then entered into an agreement with CollegeAmerica that included a "disparagement clause," which she said she did because of money owed to her during her employment. The one-page agreement prohibited Potts from contacting any governmental or regulatory agency about CollegeAmerica or publicly or privately disparaging its reputation in exchange for $7,000 and support of Potts' unemployment claim.
CollegeAmerica is seeking the return of the $7,000, plus interest and costs.
The subject of Wednesday's hearing was whether or not to stay the case in light of other pending legal battles. Eighth Judicial District Judge Thomas Lynch approved a stay until the conclusion of an appeal filed by the U.S. Equal Employment Opportunity Commission in the 10th Circuit Court of Appeals.
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A jury ruled in favor of CollegeAmerica in the EEOC's original lawsuit in U.S. District Court in Denver, in which the EEOC alleged the Larimer County lawsuit was a retaliation against Potts. The EEOC also alleged that CollegeAmerica's agreement with Potts and other former employees interfered with their rights to file charges against it.
The Larimer County case will continue at the conclusion of the EEOC appeal.
Potts also filed a lawsuit July 12 against the Center for Excellence in Higher Education in U.S. District Court in Denver, alleging the Larimer County lawsuit is retaliation for her reporting numerous accrediting standards violations.
In an interview with the Coloradoan, Center for Excellence in Higher Education CEO Eric Juhlin said Potts was a disgruntled former employee and that there was no basis for her claims.