M.R.; J.R., Parents of Minor Child E.R., Appellants v. RIDLEY SCHOOL DISTRICT
No. 16-2465
United States Court of Appeals, Third Circuit.
August 22, 2017
KRAUSE, Circuit Judge.
Argued: March 30, 2017
The Club presents one final counterargument—that Moon‘s claim that she should be treated as an employee actually arises “under the Agreement” because it refers to Moon as an “independent contractor.” Appellant‘s Br. at 10-11 (citing App. 41, 42). Despite the contract‘s employment provision, Moon‘s claims still arise under the FLSA and New Jersey statutes, not the agreement itself. In Bell v. Southeastern Pennsylvania Transportation Authority, we held that SEPTA employees’ wage-related claims under the FLSA did not arise under their Collective Bargaining Agreement (“CBA“) merely because they asked for more pay than agreed upon in the CBA. 733 F.3d 490, 495-96 (3d Cir. 2013). The employees did not argue that SEPTA failed to compensate them in the amount set forth in the CBA; they instead argued that the CBA in question failed to comply with the FLSA. Id. at 495. As such, resolution of the FLSA claims required resolution not of a dispute under the terms of the CBA, but of a statutory claim that the CBA violated the law. Id. Thus, we held the arbitration clause governing disputes under the CBA in that case did not apply to their FLSA claims. Id. at 496. Similarly, Moon‘s claim here is that she should receive certain wages and benefits as an employee under the FLSA despite her agreement stating otherwise. Because she relies “solely on [her] statutory, rather than [her] contractual, rights to recovery, ... [she] may proceed on [her] FLSA claims without first seeking arbitration.” Id.
Because the arbitration clause at bar resembles those at issue in Garfinkel and Atalese more than the one at issue in Martindale and because Moon‘s claims arise under statutes rather than the Contract, we find that the arbitration clause does not cover Moon‘s statutory wage-and-hour claims.
V. CONCLUSION
For the foregoing reasons, we will reverse the orders of the District Court and remand these matters.
John Francis X. Reilly (Argued), 230 North Monroe Street, Media, PA 19063, Attorney for Defendant-Appellee Ridley School District
Before: VANASKIE, KRAUSE, and RESTREPO, Circuit Judges
OPINION OF THE COURT
KRAUSE, Circuit Judge.
Under the
I. Background
This case pertains to a long-running dispute between Appellants, the parents of E.R., and Appellee, the Ridley School District, concerning E.R.‘s schooling and Ridley‘s obligations under the Individuals with Disabilities Education Act (“IDEA“),
A. Statutory Context
The IDEA is a comprehensive statutory scheme enacted “to ensure that all children with disabilities have available to them a free appropriate public education.”
One consequence of the IDEA‘s requirements is that school districts must sometimes reimburse parents of children with disabilities for educational expenses made on their children‘s behalf. Specifically, because an IEP must account for a child‘s “strengths,” the parents’ “concerns” about the child‘s education, the child‘s most recent disability evaluation, and the child‘s “academic, developmental, and functional needs,”
This reimbursement obligation exists not only when the school district and the parents agree that the child should be in private school but also sometimes when they do not. See generally
School districts have one more economic reason to adhere to the Act‘s requirements: although under the “American Rule” parties typically pay their own attorneys’ fees, district courts can order school districts that lose IDEA disputes to pay “reasonable attorneys’ fees” to “a prevailing party who is the parent of a child with a disability.”
B. Factual and Procedural Background
1. IEP Litigation
E.R. attended an elementary school in the Ridley School District for kindergarten and first grade. Ridley School District v. M.R. (Ridley II), 680 F.3d 260, 264 (3d Cir. 2012). After identifying E.R.‘s learning disabilities during her first-grade year, Ridley and E.R.‘s parents agreed to an IEP for the remaining months of that academic year. Id. at 265-66. The parties’ IEP negotiations for second grade, however, were unsuccessful because they disagreed about what reading aids would be appropriate for E.R., so E.R.‘s parents opted to enroll her in a private school and to file an administrative complaint accusing Ridley of “fail[ing] to develop an appropriate IEP.” Id. at 267-77.
The administrative hearing officer agreed with E.R.‘s parents and, in a report dated April 21, 2009, opined that Ridley‘s proposed IEPs “were inadequate and therefore denied E.R. a free appropriate public education.” Id. at 267 (internal quotation marks omitted). This decision in the parents’ favor during the administrative review process equated to “an agreement between the State and the parents” and rendered E.R.‘s private-school placement her “then-current educational placement” for purposes of the IDEA‘s “stay put” provision. Ridley IV, 744 F.3d at 119 (quoting
But the administrative ruling in E.R.‘s parents’ favor did not fare well in the District Court or on appeal to this Court. After Ridley petitioned for review of the administrative hearing officer‘s decision, the District Court rejected the parents’ contention that the challenged IEPs were “not based on peer-reviewed research” and were therefore deficient, Ridley Sch. Dist. v. M.R. (Ridley I), No. 09-2503, 2011 WL 499966, at *12-15 (E.D. Pa. Feb. 14, 2011), and we affirmed, explaining that “although schools should strive to base a student‘s specially designed instruction on peer-reviewed research to the maximum extent possible, the student‘s IEP team retains flexibility to devise an appropriate program, in light of the available research,” Ridley II, 680 F.3d at 275-79.
2. Reimbursement Litigation
E.R.‘s parents did not pursue their IEP-related claims further, but they did ask Ridley to reimburse them for their private-school expenses between the administrative hearing officer‘s decision in 2009 and the conclusion of the IEP appeal in this Court in 2012. See Ridley IV, 744 F.3d at 116-17. When Ridley declined, E.R.‘s parents filed suit in the District Court under the IDEA‘s “stay put” provision,
This time, the District Court ruled in the parents’ favor. See M.R. v. Ridley Sch. Dist. (Ridley III), No. 11-2235, 2012 WL 3279230, at *5-13 (E.D. Pa. Aug. 13, 2012). Although Ridley asserted a trio of defenses—claim preclusion, the parents’ alleged failure to bring a compulsory counterclaim under Federal Rule of Civil Procedure 13(a) in their first suit, and the IDEA‘s ninety-day statute of limitations—the District Court rejected each of them, concluding that Ridley‘s reimbursement obligations began once the hearing officer issued her decision in E.R.‘s parents’ favor and continued through the completion of the appeals process. See id.
On appeal, we affirmed the District Court‘s decision on the reimbursement issue in full. See Ridley IV, 744 F.3d at 120-28. Ridley then petitioned the Supreme Court for a writ of certiorari, which was denied on May 18, 2015. See Ridley School District v. M.R., — U.S. —, 135 S.Ct. 2309, 191 L.Ed.2d 977 (2015). Only after that denial did Ridley reimburse E.R.‘s parents as the District Court had ordered in 2012.
3. Attorneys’ Fees Motion
Having finally obtained the reimbursement they sought, E.R.‘s parents filed a motion for an award of attorneys’ fees under the IDEA‘s attorneys’ fees provision,
II. Standard of Review1
Although ordinarily we review attorneys’ fees rulings for abuse of discretion, our review is plenary where, as here, the district court based its denial on legal conclusions. Raab v. City of Ocean City, 833 F.3d 286, 292 (3d Cir. 2016). That is, the District Court here did not deny fees on the ground that, even if E.R.‘s parents were “prevailing part[ies]” under
III. Discussion
Applying this standard of review, we conclude, contrary to the District Court‘s decision, that E.R.‘s parents in fact are “prevailing part[ies]” under
The IDEA attorneys’ fee provision, like various other statutory fee-shifting provisions, allows courts to award attorneys’ fees to a “prevailing party.”
In the IDEA context, our opinions in John T. ex rel. Paul T. v. Delaware County Intermediate Unit, 318 F.3d 545 (3d Cir. 2003), and J.O. ex rel. C.O. v. Orange Township Board of Education, 287 F.3d 267 (3d Cir. 2002), have applied the requirement of merits-based relief to three forward-looking injunctive orders: an order requiring a child‘s temporary reinstatement to public school after the school district had requested home-schooling, J.O., 287 F.3d at 269-70, a preliminary injunction to preserve supplemental services previously provided by a school district, John T., 318 F.3d at 549-50, and a contempt order aimed at ensuring the school district‘s compliance with the preliminary injunction, id. at 551, 554. We held in John T. and J.O. that all three orders relating to temporary and preliminary relief were not merits-based and thus could not confer “prevailing party” status under
We hold today that such relief is merits-based and confers “prevailing party” status. In so doing, we draw support, first, from the IDEA‘s text; second, from our case law; and third, from the persuasive precedent in other Circuits.
A. Statutory Text
1. “Prevailing Party”
We begin with the IDEA‘s text. Kingdomware Techs., Inc. v. United States, — U.S. —, 136 S.Ct. 1969, 1976, 195 L.Ed.2d 334 (2016). Borrowing from the “prevailing party” fee provision applicable to suits brought under various federal civil rights statutes,
First, in Bagby v. Beal, we held that, because the plaintiff was afforded a due process hearing, she was the “prevailing party” under
So too here. Even though E.R.‘s parents did not succeed with respect to their request for a permanent private school placement, see Ridley II, 680 F.3d at 273-79, they did prevail with respect to their procedural right to reimbursement under the IDEA‘s “stay put” provision,
Second, in People Against Police Violence v. City of Pittsburgh, we held that the plaintiffs were “prevailing parties” under
Here, likewise, the particular claims and defenses about E.R.‘s educational placement, which the parties had litigated in the IEP action, were independent of the claims and defenses about Ridley‘s “stay put” obligations, which the parties litigated in the reimbursement action. Compare Ridley IV, 744 F.3d at 120-28, with Ridley II, 680 F.3d at 267-83. Because the presence of independent claims and defenses signals the presence of independent merits, see People Against Police Violence, 520 F.3d at 229-30, 234; see also Sch. Dist. v. Lake Asbestos of Quebec, Ltd. (In re Sch. Asbestos Litig.), 842 F.2d 671, 678 (3d Cir. 1988), our reasoning in People Against Police Violence, like our decision in Bagby, favors the view that the reimbursement obtained here, arising from claims and defenses that were independent of those relating to E.R.‘s IEP, conferred “prevailing party” status to E.R.‘s parents.
Read together, Bagby and People Against Police Violence support an interpretation of “prevailing party” under
2. Statutory Context
We read statutory provisions in context, see King v. Burwell, — U.S. —, 135 S.Ct. 2480, 2489, 192 L.Ed.2d 483 (2015), and must consider any legislative findings that would “enable us to evaluate [Congress‘s] legislative judgment,” United States v. Lopez, 514 U.S. 549, 562-63, 115 S.Ct. 1624, 131 L.Ed.2d 626 (1995). Here, Congress expressly found that “[i]mproving educational results for children with disabilities is an essential element of our national policy of ensuring equality of opportunity ... for individuals with disabilities,”
These child- and parent-friendly goals are not a reason for us to interpret “prevailing party” under the IDEA any differently than we would under other statutes, Buckhannon, 532 U.S. at 610; John T., 318 F.3d at 558, but, in considering the statutory context, we must consider the practical consequences of withholding attorneys’ fees in cases like this one, see Sturgeon v. Frost, — U.S. —, 136 S.Ct. 1061, 1070, 194 L.Ed.2d 108 (2016); Long, 671 F.3d at 375. After all, courts are “decidedly receptive” to remedies that are “necessary or at least helpful to the accomplishment of the statutory purpose.” Cannon v. Univ. of Chi., 441 U.S. 677, 703, 99 S.Ct. 1946, 60 L.Ed.2d 560 (1979).
We accordingly reject Ridley‘s contention that any and all relief relating to the IDEA‘s “stay put” provision simply cannot confer “prevailing party” status. Ridley‘s position, if made law, would render it impossible in many cases for parents, who ordinarily cannot afford private counsel, to enforce their “stay put” rights. See generally Kay v. Ehrler, 499 U.S. 432, 436 & n.8, 111 S.Ct. 1435, 113 L.Ed.2d 486 (1991); Newman v. Piggie Park Enters., Inc., 390 U.S. 400, 402, 88 S.Ct. 964, 19 L.Ed.2d 1263 (1968). While we are confident the vast majority of school districts view their mission as collaborative, not adversarial, with parents in their joint endeavor to provide children with meaningful educational opportunities and appropriate support, we cannot ignore the reality of occasional lapses. Nor can we allow school districts that ignore their obligations under the IDEA‘s “stay put” provision to do so with impunity—a result that is the antithesis of the IDEA‘s goals. See
The IDEA‘s statutory scheme accords far better with an attorneys’ fee regime that allows parents to take effective legal action if necessary to enforce their “stay put” rights. Granted, fees are not available when parents seek a forward-looking “stay put” injunction, see John T., 318 F.3d at 558-60; J.O., 287 F.3d at 273-74, but such injunctive relief is often litigated as part and parcel of the underlying proceedings about the child‘s IEP or educational placement, see, e.g., John T., 318 F.3d at 549-51, with a commensurate reduction in the time and burden of litigation. By contrast, when a school district violates its “stay put” obligations and parents must take action—whether by motion or by separate complaint—to obtain retrospective compensatory relief, then, for all practical purposes, the resulting proceedings are separate from any IEP or educational placement proceedings.
Our customary interpretation of the term “prevailing party” and the statutory context of the fee provision at issue compel us to consider not only the course charted by our prior opinions, but also the real consequences of withholding attorneys’ fees when parents obtain retrospective compensatory relief arising from the IDEA‘s “stay put” provision. In situations like these, we conclude that the parents are “prevailing part[ies]” eligible for an
B. Third Circuit Cases
Our previous opinions in the IDEA context buttress our conclusion in this case. In P.N. ex rel. M.W. v. Clementon Board of Education, for instance, we held that an award reimbursing parents for the costs of supplemental services conferred “prevailing party” status under the IDEA. See 442 F.3d at 850-51, 856-57. Likewise, after affirming the parents’ right to reimbursement for the costs of a child‘s “stay put” placement in Drinker ex rel. Drinker v. Colonial School District, we stated that the parents were “entitled to renew their motion for attorneys’ fees” on remand, thereby confirming that the parents were prevailing parties. 78 F.3d 859, 863-68 (3d Cir. 1996). Even when discussing reimbursement related to a temporary “stay put” educational placement, thus, our prior opinions establish that retrospective and compensatory relief can ground a fee award.
Ridley, however, points to isolated phrases in John T. and J.O. and contends they oblige us to hold that relief arising from the IDEA‘s “stay put” provision can never confer “prevailing party” status. Not so. The school district ignores the procedural postures of those cases, which, as discussed above, involved forward-looking and temporary injunctive relief, not backward-looking and compensatory relief that requires an independent merits determination. See John T., 318 F.3d at 549-51, 558-60 (preliminary injunction); J.O., 287 F.3d at 269-70, 273-74 (order granting temporary reinstatement to public school).
To be sure, the contempt order in John T. awarded John T.‘s parents $1100 as a rough estimate of the value of services that the school district, in violating the district court‘s preliminary injunction, had refused to provide for a particular month. John T., 318 F.3d at 551. But that monetary award, in contrast to the compensatory relief equating to actual damages awarded here, took the form of a remedial civil sanction, existing not merely to remedy “losses sustained due to noncompliance” but also to “coerce compliance” with the district court‘s underlying injunction. Id. at 554 (emphasis omitted) (quoting United States v. Pozsgai, 999 F.2d 719, 735 (3d Cir. 1993)). For that reason, the contempt order awarded an amount approximating John T.‘s parents’ losses, but did not purport to reimburse their actual expenses. See McDowell v. Phila. Hous. Auth., 423 F.3d 233, 240-41 (3d Cir. 2005); John T., 318 F.3d at 554.
As we explained in John T., the contempt order‘s close relationship with the underlying preliminary injunction alters the nature of the “prevailing party” analysis for such an order: a contempt order is considered “in ... relation to the underlying relief that it enforces” and cannot confer “prevailing party” status unless the underlying relief does. John T., 318 F.3d at 559-60. Accordingly, when the underlying relief is forward-looking, injunctive, and temporary, the contempt order is too. See id. And the basic equivalence between a contempt order and the underlying relief it enforces extends not only to the “prevailing party” analysis, but also to whether the contempt order is appealable: because “a civil contempt proceeding is a continuation of the underlying civil action from which it arises,” in most cases the contempt order is not immediately appealable when the underlying action is not yet appealable. John T., 318 F.3d at 559; see also 3A Charles Alan Wright et al., Federal Practice and Procedure §§ 703, 714 (4th ed. 2017); Halderman v. Pennhurst State Sch. & Hosp., 673 F.2d 628, 636 (3d Cir. 1982). In John T., thus, the contempt order equated to a rewriting of the underlying forward-looking and temporary injunction in stronger terms, and hence it did not confer
What we have here is something wholly different. True, the reimbursement suit arose because of Ridley‘s refusal to obey its obligations under the IDEA‘s “stay put” provision,
C. Other Circuits’ Cases
The distinction we adopt today between forward-looking injunctive “stay put” relief and backward-looking compensatory “stay put” relief accords with the approaches taken by our Sister Circuits. On the one hand, other Courts of Appeals addressing forward-looking injunctive orders have held that “stay put” injunctions and similar temporary orders relating to a child‘s educational placement cannot confer “prevailing party” status, as we did in John T. and J.O.5 On the other hand, Courts of Appeals addressing reimbursement awards in the broader context of the IDEA have held generally that retrospective and compensatory relief confers “prevailing party” status,6 and both appellate and district courts have ruled, specifically in the context of addressing backward-looking “stay put” relief (analogous to the reimbursement award here) or similar independent relief obtained under the IDEA, that such relief does confer “prevailing party” status, consistent with our conclusion today.7
***
For the reasons discussed above, we hold that the IDEA‘s “stay put”
If the school district violates either right, then the parents can bring administrative or judicial action to enforce the violated right, and the parents’ eligibility for a fee award, if they are successful, depends on the underlying right enforced. Where the action enforces the child‘s physical right to “stay put” and the parents obtain temporary forward-looking injunctive relief, there is no determination “on the merits” and the parents are not eligible for a fee award. See John T., 318 F.3d at 558-59. But where the action enforces the parents’ right to reimbursement or the child‘s right to compensatory education and the parents obtain backward-looking compensatory relief, the action requires an independent merits determination and the parents are eligible for a fee award.8
E.R.‘s parents’ reimbursement litigation falls into the latter category: When Ridley refused to pay for E.R.‘s “stay put” placement, E.R.‘s parents sued for backward-looking compensatory relief, and, when they won the relief they sought, they obtained a merits-based victory. See Ridley IV, 744 F.3d at 117-28. E.R.‘s parents are therefore “prevailing part[ies]” under the IDEA and are eligible for an award of attorneys’ fees,
IV. Conclusion
For the foregoing reasons, we will reverse and remand for proceedings consistent with this opinion.
