As a result of the lawsuit filed by The Book Exchange Inc., West Virginia University's "Reserve Convenience account" program has been suspended by injunction for the Fall 2007 semester. This suspension, while temporary, prevents WVU from withholding a portion financial aid students' money to use only at the WVU/Barnes & Noble bookstore, which will allow students to purchase their textbooks from other sources.

On Friday, July 20th, Monongalia Circuit Court Judge Russell Clawges heard arguments from both sides about whether or not to grant the injunction. When William Galeota, one of the attorneys representing WVU, suggested that the Book Exchange lacked standing the judge asked, “Are you suggesting this would be better as a class action filed by the students?”

Clawges was filling in for Judge Robert Stone who will be handling the suit and a motion to dismiss, but he was in Charleston for a trial last week. But Clawges said the University’s program with Barnes and Noble was “unfair” and that “There’s no question that this program channels money into the University and Barnes and Noble.”

One of the reasons an injunction is granted is the likelihood that the case can be won.

“But,” he said indicating a hard road ahead for the Book Exchange, “it being unfair doesn’t make it unlawful.”

The Book Exchange Inc. of Morgantown has filed a civil lawsuit accusing West Virginia University Board of Governors, WVU President for Administration and Finance Narvel G. Weese, Jr., and Barnes & Noble Booksellers, Inc of unfair trade practices. The suit challenges a financial aid withholding policy which deceives and defrauds many WVU students and disrupts the free trade market for textbooks at WVU.

The program in question deprives many students of the opportunity to purchase textbooks from alternate sources (i.e. The Book Exchange) at lower prices. This “Reserve Convenience Account” program seizes $450 from financial aid students and forces them to use this money at the Barnes & Noble University Bookstore.

The students never directly authorize the seizure of their money. The money is simply taken unless financial aid students opt out of the program before an arbitrary date set by the University. This deadline is buried in an untimely and obscurely labeled email calculated to deprive most students of the opportunity to withdraw from the program. As a result, these students are forced to buy their books from the defendants’ higher priced stores.

The lawsuit argues that this policy is unfair to students who are denied a chance to pay less for textbooks. It also argues that The Book Exchange is illegally prevented from competing for this money by providing lower textbook prices to the affected students. The program corners a significant portion of the textbook market, which violates free trade guarantees and constitutes an attempt to monopolize this segment of the market.

The Book Exchange, Inc. is seeking an injunction requiring WVU/Barnes & Noble to cease this withholding policy. The Book Exchange also seeks $2 million in financial reparations for business lost because of this unfair policy. Bader Giggenbach of the law firm Brewer and Giggenbach will act on behalf of The Book Exchange, Inc. in this matter.