South Pacific University Litigation Update

On July 24, 2002 the First Circuit Court of the State of Hawaii entered a Judgment Against Defendant South Pacific University (a Hawaii corporation). The judgment enjoins SPU from operating an unaccredited degree granting institution. It also orders the termination of the corporation's registration and imposes $250,000 in civil penalties against the corporation.

In addition, the judgment obligates SPU to provide full restitution to any student or graduate who so desires. SPU is ordered to compile a list of students/graduates since July 1, 1999 and to send them a written offer of restitution. Consumers can also file complaints with our office. Complaint forms are available on the internet at http://www.state.hi.us/dcca/ocp. The order requires SPU to make the refund within twenty days of the request.

SPU operated entirely from outside the state of Hawaii. There are no known assets within the state (or without) from which the judgment may be collected. Thus in the event SPU refuses to pay restitution, there is little our office can do at this point. In short, this judgment makes it clear that SPU is not authorized to issue degrees in or from the State of Hawaii or under the claimed color of Hawaii law.

In addition to the defunct corporation, the lawsuit also named Curtis E. Smith individually as a defendant. The claims against Mr. Smith are still pending hearings scheduled for August 24, 2002.

Anyone who desires an electronic version of the judgment may email their request directly to me.

Jeffrey E. Brunton
Staff Attorney
Office of Consumer Protection
State of Hawaii
Suite 801
235 South Beretania Street
Honolulu, Hawaii 96813
[email protected]

 

The final remaining defendant in this case, Curtis E. Smith of California. has agreed to a final resolution of all remaining claims in this lawsuit. The settlement is being documented via a stipulated permanent injunction and judgment to be filed with the court. Under the terms of the settlement, Mr. Smith has agreed to cease doing business in, from or under the color of Hawaii law, has agreed to offer restitution to students enrolled in South Pacific University after July 1, 1999 and has paid a fine of $6,000.

Anyone wishing to see an electronic version of the stipulation may email requests to [email protected].

Jeffrey E. Brunton
Staff Attorney
Office of Consumer Protection State of Hawaii