Top court rules Nova policy illegal / School must fully refund cancelers

The Supreme Court ruled Tuesday that major English school Nova Corp.’s method of settling early cancellations of its courses by using a higher unit price than when the contract was signed is illegal and violated the Specified Commercial Transaction Law.

The ruling followed a case brought by a 39-year-old man from Kita Ward, Tokyo, who tried to cancel a contract and demanded the company refund the 310,000 yen he said he was owed for classes he had not taken.

Presiding Justice Kohei Nasu ruled it is illegal to settle a contract by charging more for each unit taken than was agreed on when the contract was signed. He dismissed the appeal by Nova, and upheld and finalized the first and second rulings ordering the return of all the money demanded.