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September 17, 1982


The opinion of the court was delivered by: EDELSTEIN


 EDELSTEIN, District Judge:

 This is an action for damages resulting from certain alleged misrepresentations contained in a bulletin distributed by defendant American University of the Caribbean ("AUC") to plaintiff Mohammad Idrees ("Idrees") and other prospective students which Idrees claims falsely describes AUC's course of study, faculty, and facilities for its School of Medicine. The court has jurisdiction pursuant to 28 U.S.C. ยง 1332.


 AUC is a not-for-profit corporation organized in January 1978 under the laws of the British Crown Colony of Montserrat, British West Indies. The University's first class of instruction commenced on August 14, 1978, at a temporary campus in Cincinnati, Ohio. AUC moved to its present campus in Montserrat in January, 1980. In addition to its Montserrat campus, AUC maintains offices in Miami and Taiwan. The Miami office processes applications and requests for information, and transmits correspondence between Montserrat and the United States. The Miami office operates as well as an office for AUC's Dean of Clinical Studies.

 The University consists of two schools, the School of Medicine ("the school") and the School of Graduate Studies. At the time of trial, 470 students were enrolled in and 270 had just been graduated from the school. The campus occupies twenty-five acres in Montserrat and includes thirteen buildings constructed from 1978 to 1980. *fn1" The school employs approximately 130 staff and faculty personnel.

 From January 7, 1979 to January 25, 1981 AUC placed the following advertisement in the New York Times:2

At an English speaking foreign medical school near the U.S.A.
The American University of the Carribean [sic] -- School of Medicine -- is located on Montserrat in the British West Indies. Listed by the World Health Organization. Courses taught by U.S. educators. Offers M.D. program on a tri-semester system. Completion in 2 years and 9 months.
To apply, contact U.S. office [the Miami office address and telephone number was then listed].

 Idrees resides in New York City and is an American citizen of Pakistani origin, who came to the United States in 1972. He was employed as a laboratory technician at Beth Israel Medical Center ("Beth Israel") in New York City from November 11, 1972 to May 9, 1980.

 In late 1979 or January 1980, Idrees saw AUC's advertisement in the New York Times and requested a copy of AUC's Bulletin and admissions materials from the AUC Miami office. *fn3" Idrees received the materials in January, 1980, and on approximately January 31, sent his completed application for the May, 1980 semester and an application fee of $50.00 to AUC's Miami office. *fn4" The Miami office received the application on February 4 and transmitted it to Montserrat for review by the Admissions Committee. Idrees' application was accepted on March 4, and a notification of formal acceptance and bulletin of new student information was sent to Idrees from the Miami office on March 12. On March 18, Idrees paid to AUC an "inscription fee" of $450.00 thereby confirming his enrollment in the May semester.

 After having been denied an educational leave of absence, Idrees resigned from his position with Beth Israel as of May 9. Idrees arrived in Montserrat on May 10, paid his tuition fee of $3,005.00 to AUC's registrar's office on May 12, and commenced classes at AUC on May 14.

 Shortly thereafter, and as Idrees states in his amended complaint, he allegedly discovered that AUC had falsely represented that:

1. The school had a library with periodicals, books and audio-visual aids. These representations were false as the library in fact had no periodicals, books or audio-visual aids. (para. 3.);
2. [The school] had laboratory facilities that included microscopes, microscopic slides and skeletons. These representations were false as there were no microscopes, microscopic slides or skeletons in the laboratory. (para. 4.);
3. For the class in histology [each student] would be provided with a set of prepared slides and a microscope. These representations were false as he was not provided with said slides or microscope. (para. 5.);
4. Defendant in [its bulletin] published a photograph identified as the Montserrat Hospital calculated to give plaintiff the impression that the hospital and the school had a relationship that would enable plaintiff and other students to use the facilities of said hospital. Plaintiff was in fact deceived by the publication of said photograph inasmuch as neither he nor other students were able to use any of the facilities of the hospital. (para. 6.);
5. [A] semester would consist of four classes commencing May 14, 1980. Such representation was false as only two classes started on that date. Defendant represented that the laboratory class would start on May 14, 1980. Such representation was ...

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