Colleges at odds over validity of courses

Allegations are flying in Franklin County Common Pleas Court between two for-profit Ohio colleges at odds over real estate courses.

A lawsuit filed by Westerville-based Hondros College last month alleges Toledobased Davis College and online real estate education company CE Shop engaged in false and deceptive advertising when they offered and promoted real estate prelicense coursework without proper authorization.

Hondros alleged both Davis College and CE shop advertised courses that had “everything you need to get your real estate license in Ohio,” but didn’t have proper approval for the courses from the State Board of Career Colleges and Schools. Students have to complete approved prelicensing courses to take the exam to become a licensed real estate agent in Ohio.

Hondros argues in court documents that Davis College and CE shop have defrauded students and hurt Hondros’ enrollment and profits.

But attorneys for Davis College and CE Shop said the two were acting within the law.

The real estate courses didn’t need approval from the Board because they were credit-eligible and offered by an institute of higher education, Davis and CE shop said in court documents. Under an Ohio law that went into effect in April, which they said Hondros fought vigorously, only noncredit course offerings needed approval from the Board, the defendants wrote.

“It felt like it was in complete compliance with the requirements of the statute,” said Stephen D. Jones, the attorney representing Davis College and CE Shop.

Still, out of what Davis called “an abundance of caution,” the school has applied for Board approval.

Former Davis College students who couldn’t complete their coursework were turning to Hondros for help, said Hondros attorney Thomas W. Hill. The college is now offering those courses to Davis students at no cost, Hill said.

“They pride themselves on being good stewards of education in Ohio and helping those who want to further their education and their employment opportunities,” Hill said of Hondros. Jones said the lawsuit is an attempt by Hondros, which states in court filings that 92 percent of Ohio real estate licensees are Hondros alumni, to limit competition.

“We view this as an improper attempt by a competitor … of Davis College to attempt to prevent fair competition in the state of Ohio with respect to real estate coursework offering,” Jones said.

Hondros sought a restraining order to force Davis College and CE shop to discontinue advertising their courses and notify their students of the dispute regarding the program. A judge granted that order, but stayed the portion requiring Davis notify students pending further court action. The case is set for its next status conference in January.