A quarter of a century after the collapse of the Career Academy, the former owners are finally getting their day in court to determine who was to blame.
The Career Academy was the flagship of private colleges in the ’90s, with its owner, Lorraine Lush, very much the face of them.
In ’97, she had 14 campuses in three provinces and one of the best run businesses in Canada.
A year later, and 25 years ago, they shut down out of the blue, leaving thousands of students and staff scrambling for new schools, jobs, and their money back.
One person infamously paid full tuition the day before they went under, along with five other schools over the next two years.
Lorraine Lush and Husband John Mastropietro
Lush and husband John Mastropietro sued, blaming then education minister Roger Grimes for changing student loan rules and foiling a sale to a new operator.
The Supreme Court recently refused to hear a summary trial, without testimony, in the case. But last week, both sides agreed to trial on the issue of liability alone, after which damages—and whether anyone can get their money back—could be a moot point.
Trial dates should be finalized following pre-trial meetings in the fall.
About $20 million is still owed to creditors, including former students.
