Penningtons Manches

UK 200 2014 position: 60

Education Update — May 2014: when joint ventures go wrong — disputes with other education providers

By Nicole Finlayson

Joint ventures (JVs) between higher education institutions have become increasingly common. But what should you do when things don’t go according to plan?

Even with the best intentions of the parties, JVs often don’t run smoothly. Some of the most common types of dispute arise out of visa rule changes, one party not complying with the Home Office’s Tier 4 compliance requirements, breaches of non-compete or exclusivity clauses, financial disputes (for example over commissions or profit shares) or the interpretation of the JV agreement.

The consequences of a dispute can be far reaching and serious. In the most severe cases, an institution may be unable to continue to teach its current students, either due to financial constraints or because the party with the accreditation powers has had its sponsor licence revoked. Reputational damage is another hazard. The institution will be unable to enrol international students for future intakes in the case of licence revocation…

Click on the link below to read the rest of the Penningtons Manches briefing.

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