Microcomputer Tech. Inst. v. U.S. Dept. of Educ., 962 F.Supp. 986 (S.D. Tex. 1997), aff’d in part, rev’d in part, 139 F.3d 1044 (5th Cir. 1998)

Mr. Gregory and attorneys at his prior firm represented MTI in its dispute with the United States Department of Education regarding more than $11 Million in Pell Grant funds. Following a change in policy, the Department of Education sought to recoup from MTI more than $11 Million in Pell Grant Funds paid to MTI students to cover their tuition at MTI. In a make-or-break case for the school, MTI filed suit in Federal court to challenge the Department’s action. Ultimately, the U.S. District Court entered an injunction prohibiting the government from taking any action to recoup the funds and entered a judgment that the government could not recover the funds based on its retroactive application of the new policy. On appeal, the Court of Appeals upheld the judgment as to approximately $8 Million and remanded the remaining portion of the case to the Department for further administrative proceedings.