The U.S. District Court for the Southern District of Ohio dismissed a case brought against Ohio University by a graduate doctor of the College of Osteopathic Medicine.
The case centered upon whether or not a state university may demand reimbursement from an out of state student who reneged on promises to practice in Ohio after graduation.
The university regularly collects six-figure annual sums from out-of-state alumni of its College of Osteopathic Medicine who default on a contractual agreement they must sign to be enrolled.
Non-Ohio residents who want to attend the medical school must agree to practice in Ohio for five years. Those who renege must pay back what the state invested in their education.
The student filed suit, alleging that the contract violates the "commerce clause" of the U.S. Constitution because the payment the university exacts for default is a penalty for opening a medical practice in another state and therefore an illegal restriction on interstate commerce.
The Court dismissed the case on procedural grounds without reaching the merits of the case, finding that the student was outside the statute of limitations to bring such a claim.