Monarch Academy Baltimore Campus, Inc. v. Baltimore City Board of School Commissioners
153 A.3d 859
Md. Ct. Spec. App.2017Background
- Multiple Baltimore City charter schools sued the Baltimore City Board of School Commissioners for breach of contract, alleging failure to provide "commensurate" funding and to disclose budget/financial information required by their charter agreements.
- Charter agreements incorporated ED § 9-109’s requirement that charter school funding be "commensurate with the amount disbursed to other public schools."
- The State Board of Education (MSBE) had previously interpreted "commensurate" funding by adopting an average per-pupil formula and a 2% deduction for central administrative costs in earlier declaratory rulings and cases.
- The City Board moved to dismiss or stay the circuit-court suits, asserting the State Board has primary jurisdiction over interpretation and application of charter funding issues and had filed a contemporaneous petition for declaratory relief with MSBE.
- The circuit court denied dismissal but later stayed the breach-of-contract proceedings pending administrative review by MSBE; MSBE declined to proceed while the matter was in court and later dismissed the City Board’s petitions.
- The charter schools appealed the stay order to the Court of Special Appeals; the appellate court dismissed the appeal for lack of appellate jurisdiction, holding the stay was not a final, appealable order nor appealable under the collateral-order doctrine.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the circuit court erred in staying proceedings under the primary jurisdiction doctrine | Stay inappropriate; breach-of-contract claims are judicial matters seeking monetary and equitable relief and MSBE’s prior interpretations already settle applicable law | Primary jurisdiction applies because the State Board has broad, visitatorial authority to decide disputes under the Education Article, including charter funding methodology | Appeal dismissed for lack of jurisdiction: stay was interlocutory (postponement), not final, and not appealable under the collateral-order doctrine |
| Whether the stay order put plaintiffs "effectively out of court" making it appealable as final | Stay could indefinitely delay relief and leave plaintiffs without remedy if administrative review were inadequate | Stay merely deferred court proceedings to the State Board and contemplated return to court after administrative determination | Court found no indication of an indefinite delay; stay did not put plaintiffs effectively out of court |
| Whether the collateral-order doctrine permits immediate appeal of the stay | Collateral-order doctrine applies because the stay conclusively and separably disposes of jurisdictional question and would be unreviewable later | The stay is intertwined with the merits (primary jurisdiction inquiry is bound up with the case) so it fails the separability and unreviewability requirements | Stay fails collateral-order test (especially separability); interlocutory order not appealable |
| Whether prior MSBE and appellate rulings (e.g., City Neighbors) eliminate need to defer to State Board | Prior rulings provide guidance, so courts can decide; administrative process is unnecessary | Even with prior guidance, MSBE retains primary jurisdiction and authority to interpret and apply educational statutes in particular disputes | Court rejected argument that prior rulings made MSBE review unnecessary for purposes of stay; primary jurisdiction analysis remains tied to merits and deferral was proper |
Key Cases Cited
- Bd. of Educ. for Dorchester County v. Hubbard, 305 Md. 774 (MSBE has broad, visitatorial authority over public education)
- Baltimore City Bd. of Sch. Commr’s v. City Neighbors Charter Sch., 400 Md. 324 (MSBE interpretation of "commensurate" funding and role in guiding funding methodology)
- Patterson Park Pub. Charter Sch., Inc. v. Baltimore Teachers Union, 399 Md. 174 (State Board has primary jurisdiction over educational provisions)
- Schuele v. Case Handyman & Remodeling Srvcs., 412 Md. 555 (appealability requires final judgment; arbitration/order putting parties out of court is appealable)
- County Comm’rs of Frederick County v. Schrodel, 320 Md. 202 (narrow collateral-order appeal where stay effectively and irretrievably blocked trial)
- Crystal Clear Commc’ns, Inc. v. SW Bell Tel. Co., 415 F.3d 1171 (stay pending agency action under primary jurisdiction is generally not appealable)