Legal Question in Business Law in Alabama

Scholarship Penalty Fees

Many hospitals offer nursing students scholarships in turn for their work committment for a period of two years or more (Example $5000 for 27 month committment). One institution also assesses a $3000 fine to students if another facilitiy decides to employ them or pay-off their scholarship before they begin work or within their first 6 months of ''working off'' their committment if they leave the job. Obviously the scholarship money should be paid back if the students gets a job at another facility, but is the $3000 fine legal? They have a generic contract that is signed by the student and Chief Nursing Officer but it is not notarized. Thank you.


Asked on 7/15/04, 10:51 am

1 Answer from Attorneys
Bobby Lott, Jr. Attorney at Law

Re: Scholarship Penalty Fees

I'm not sure that the fine would be legal at all. A case might be made that the fine was unconscionable. I would like to talk to you more about this at your convenience.

Please either email me with more details or call my office at: 205 - 322 - 3747.

There is no charge for this consultation. If it appears there might be a good case, we can discuss payment options at that time.

Thanks!

Bobby

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Answered on 7/15/04, 10:56 am


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