T.D., Plaintiff-Appellee, v. LAGRANGE SCHOOL
No. 02-3928
United States Court of Appeals For the Seventh Circuit
Before COFFEY, KANNE, and DIANE P. WOOD, Circuit Judges.
Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 98 C 2071—James B. Zagel, Judge.
KANNE, Circuit Judge. Congress enacted the Individuals With Disabilities Education Act (“IDEA”) with the primary purpose of ensuring that a “free appropriate public education” is available to all children with disabilities.
In this appeal we address whether the plaintiff, T.D., is a prevailing party under this fee-shifting provision and whether T.D. is thereby eligible for attorney’s fees.1 The district court, finding that the Supreme Court’s recent decision in Buckhannon Bd. & Care Home v. W. Va. Dep’t of Health & Human Res., 532 U.S. 598 (2001), did not apply to the IDEA, held thаt T.D. was entitled to attorney’s fees. We hold that Buckhannon does apply to the IDEA, but find that T.D. is still entitled to a portion of his attorney’s fees. We also find that the district court erred in finding that T.D. was entitled to receive reimbursement under the IDEA for his expert witness fees.
I. History
A. Background
T.D., born June 24, 1991, is a strong-willed child, who was diagnosed with Attention Deficit Hyperactivity Disorder at an early age. His parents enrolled him in private pre-schools and elementary schools through the early part of 1997. On February 4, 1997, during T.D.’s kindergarten year, he was dismissed from a parochial school after the school determined that it did not have the special-education resources needed to properly educate him. The parochial school offered to refer T.D. to the local public sсhool for services, but at that time his parents refused to allow the parochial school to make the referral.
A week after T.D. was dismissed from the parochial school, his parents took him to the University of Chicago’s Hyperactivity, Attention, and Learning Problems Clinic for an independent evaluation. That
In March and April of 1997, T.D.’s mother spoke at various times with the public school district’s Director of Special Ed, Mary Ann Cusick. During these conversations, T.D’s. mother sought information about the school district’s special-education programs and apparently expressed some reluctance to enroll T.D. in the school district, based on T.D.’s older brother’s experience there. At some point during this period, T.D.’s mother visited the local public school that T.D. would attend. During this visit, she met with the principal and the kindergarten teacher, and the school provided her with further information about the special-education services that would be available to T.D. within the context of the regular classroom setting. At no point during March or April of 1997, did the school district request written consent to conduct a case-study evaluation of T.D. to determine his potential eligibility for various special-education programs.
In September 1997, T.D.’s parents enrolled him in the first grade at Acacia Academy, a private therapeutic day school. Acacia, however, would only allow T.D. to attend full-time if his parents hired a one-on-one aide to accom-pany him. After a short period of attending only part-time, T.D.’s parents hired an aide and thereafter T.D. attended full-time.
B. Due Process Administrative Proceedings
On August 25, 1997, approximately five months after T.D.’s mother first contacted the public school district officials, T.D.’s parents requested, through their attorney, a due process hearing before a state administrative hearing officer as provided for by
Part of the relief requested by T.D.’s parents was that the school conduct an evaluation to determine T.D.’s eligibility under the IDEA for special-education services. On October 15, 1997, the hearing officer conducted a pre-hearing conference on this issue, after which the hearing officer determined that a case-study evaluation was necessary and ordered the school to conduct the evaluation. Following this order, on November 20, 1997, the school conducted the evaluation and convened an Individualized Education Program (“IEP”) conference, as required by the
The administrative due process hearing commenced on December 5, 1997. The parents sought: (i) reimbursement for
In a ruling rendered on December 10, 1997, the hearing officer made findings that as of the last week of March 1997, the school district knew that T.D. might require special-education services and should have requested the parent’s written consent to conduсt a case-study evaluation of T.D. at that time. Further, pursuant to the case study, the school should have identified the student’s needs and formulated program and service options. It was not until the hearing officer ordered the evaluation that these things were accomplished. The hearing officer found that the school district’s failings contributed to the parents need to place T.D. in the private school and to obtain a one-on-one aide. Therefore, the hearing officer ordered the school district to reimburse T.D.’s parents for their out-of-pocket costs for the one-on-one aide, a cost of about $1130 per month and for the costs of transportation to the school, a cost of about $5 per ride, from September 17 until the school district could provide the appropriate services. As to T.D.’s educational placement, however, the hearing officer found that the private school in which T.D. was enrolled could not adequately meet his needs. Therefore, he denied reimbursement for the private school tuition, and he ordered that T.D. be transferred to a regular mainstream classroom at the local public school with supplemental special-education services.
C. District Court Proceedings and Settlement
T.D. appealed to federal district court, seeking reversal of the proposed placement in a regular classroom, asking instead for continued placement at the private day school. Further, he sought reimbursement of thе tuition already paid by his parents for the day school. He also asked for the relief already granted by the hearing officer, namely the reimbursement of the one-on-one aide cost and transportation costs. Finally, he sought attorney’s fees and costs.
Both parties moved for summary judgment, but before the district court ruled, the parties settled. The settlement agreement provided that T.D. would be placed in a self-contained behavior disordered program (as opposed to a regular classroom) in a public school. The school district agreed to reimburse T.D.’s parents for tuition and all costs in any way resulting from or relating to T.D.’s attendance at the private day school, a total of $52,000. The parties did not reach an agreement regarding attorney’s fees, specifically leaving the issue for decision by the district court.
The district court rendered its decision on attorney’s fees on October 7, 2002, holding that T.D. was a “prevailing party” and therefore was entitled to attorney’s fees under the IDEA’s fee-shifting provision. In finding that T.D. was a prevailing party, the district court noted that he had succeeded on a significant issue when he obtained the case-study evaluation, which determined that he was eligible for special-education services. The court went on to state:
[I]rrespective of how much Parents prevailed in the hearing or in my Court, I find that Parents obtained through settlement the balance of what they desired and TD needed. TD’s placement in a self-contаined behavior disordered classroom
in a public school is the direct result of Parent’s litigation on the issue of TD’s placement and the settlement represents a significant departure from La Grange’s proposal to educate TD in a regular mainstream classroom with a one-on-one aide.
Importantly, the district court held that the Supreme Court’s recent decision in Buckhannon did not apply to the IDEA. The district court expressly stated that it was not deciding whether attorney’s fees would be appropriate under the strictures of Buckhannon.
The district court awarded T.D. $117,135.53 in attorney’s fees and costs. The school district now appeals that decision.
II. Analysis
A. Buckhannon and the IDEA
The IDEA, like many other federal statutes, provides that courts may award attorney’s fees to a “prevailing party”:
In any action or proceeding brought under this section, the court, in its discretion, may award reasonable attorneys’ fees as part of the costs to the parents of a child with a disability who is the prevailing party.
The school district argues that since this case was ultimately resolved through a private settlement, without a judicial imprimatur, T.D. does not qualify as a “prevailing party” under the Supreme Court’s explanation of that term in Buckhannon. T.D. counters that Buckhannon’s rules are inapplicable to the IDEA. Therefore, the threshold issue in this case is whether Buckhannon’s limitations on the meaning of the term “prevailing party” apply.
Although Buckhannon involved only claims under the “prevailing party” fee-shifting provisions of the ADA and FHAA,2 there is little doubt that the Buckhannon Court intended its interpretation of the term “prevailing party” to have broad effect upon similar fee-shifting statutes. The Court observed that Congress has passed many statutes that authorize courts to award attorney’s fees to the “prevailing party,” such as
Given these considerations, at least one circuit has interpreted Buckhannon as applying to all “prevailing party” fee-shifting statutes. See Smyth v. Rivero, 282 F.3d 268, 274 (4th Cir. 2002) (holding that Buckhannon applies to
We reiterate, however, that because “prevailing party” is a legal term of art that is interpreted consistently across fee-shifting statutes, there is a strong presumption that Buckhannon applies to each fee-shifting statute that awards fees to “prevailing parties.” Consequently, for this Court to find that Buckhannon does not apply to the IDEA, a “prevailing party” fee-shifting statute, the “text, structure, or legislative history” would have to clearly indicate that in the IDEA, Congress did not intend to use the term “prevailing party” in its traditional “term of art” sense.
The district court below held that the text of the IDEA set it apart from other statutes. We acknowledge that the IDEA’s text and structure is somewhat more complex than other “prevailing party” fee-shifting statutes because the IDEA not only states that attorney’s fees are available to “prevailing parties,” but it also contains limiting provisions in §§ 1415(i)(3)(D)-(G), which specify certain situations where attorney’s fees are unavailable or must be reduced. For instance,
The bottom line is that these limiting provisions do not clearly indicate that the term “prevailing party” was intended to encompass anything more in the IDEA than in any of the other “prevailing party” fee-shifting statutes. In fact, these provisions do not inform anything about the meaning of the term “prevailing party” in the IDEA because they are relevant only after a plaintiff has been deemed a “prevailing party.”
We turn next to the legislative history. As both the Second and Third Circuits have recognized, the legislative history of the IDEA seеms to indicate that Congress did not intend the IDEA to be interpreted any differently from other prevailing party fee-shifting statutes. See John T., 318 F.3d at 557; J.C. v. Reg’l Sch. Dist. 10, 278 F.3d 119, 124 (2d Cir. 2002). When Congress added the fee-shifting provision to the IDEA’s predecessor statute, the Education of the Handicapped Act, the Senate Committee on Labor and Human Resources provided that “it is the committee’s intent that the terms ‘prevailing party’ and ‘reasonable’ be construed consistently with the U.S. Supreme Court’s decision in Hensley v. Eckerhart,” which involved
In addition to the textual and legislative history arguments, T.D. makes essentially two policy arguments, which he claims show that Buckhannon should not be applied to the IDEA. We approach these arguments with caution because the Buckhannon Court itself, in analyzing the policy arguments made in that case, stated: “Given the clear meaning of ‘prevailing party’ in the fee-shifting statutes we need not determine which way these various policy arguments cut.” 532 U.S. at 610. Consequently, it is not clear that the Supreme Court has left any
T.D. contends that the statute is designed to facilitate early, informal resolution of controversies between schools and students. According to T.D., this is an important goal of the IDEA because delay in finding an appropriate school setting сan be detrimental to a child’s development. T.D. maintains that this goal would be undermined if we found that private settlements do not entitle plaintiffs to attorney’s fees because parents and attorneys would have an incentive to reject settlement offers and thereby delay the final resolution of the proceedings.
We recognize the importance and benefit of quick resolution to any litigation; particularly, litigation that involves the educational placement of a child. But many of the same factors that make quick resolution through settlement beneficial under the IDEA apply to the statutes that were at issue in Buckhannon as well. For instance, there are surely strong policy reasons for quickly resolving a disabled person’s claims undеr the ADA. Nonetheless, Buckhannon held that ADA plaintiffs may receive attorney’s fees only upon receipt of some judicially sanctioned victory. In other words, Buckhannon simply has closed the door on this argument. John T., 318 F.3d at 557; J.C., 278 F.3d 124. Moreover, in response to the same policy argument that T.D. makes here—that settlement is to be encouraged under the IDEA and therefore we should allow attorney’s fees for settlement—the Second Circuit noted:
[I]t is difficult to reconcile [the] policy argument for awarding fees pursuant to informal settlements with the fact that, even before Buckhannon, Congress deliberately chose not to allow the recovery of attorneys’ fees for participation in IEP proceedings that were not convened as a result of an administrative proceeding or judicial action.
20 U.S.C. § 1415(i)(3)(D)(ii) . The IEP Team is a mechanism for compromise and cooperation rather than adversarial confrontation. This atmosphere would be jeopardized if we were to encourage the participation of counsel in the IEP process by awarding attorneys’ fees for settlements achieved at that stage.
T.D.’s second policy argument centers around the stated purpose of the IDEA “to ensure that all children with disabilities have available to them a free appropriate public education . . . to meet their unique needs.”
While this is probably T.D.’s strongest argument, we are still not persuaded. We note that the IDEA only guarantees the right to a free education; it does not explicitly guarantee the right to attorney’s fees incurred in pursuit of that education. Cf. Edie F. v. River Falls Sch. Dist., 243 F.3d 329, 336 (7th Cir. 2001) (“Clearly . . . parents . . . have a right to champion their [child’s] cause, but the right to have their attorneys fees picked up by the taxpayers is more circumspect.”). Therefore, it is not clear that it would be against the purpose of the IDEA to require plaintiffs who do not achieve judicial imprimatur on their victory to bear their own attorney’s fees. Furthermore, in light of Buckhannon, which made explicit
Moreover, we do not take lightly the fact that virtually every court to have decided the issue has determined that Buckhannon applies to the IDEA. For instance, the only two federal appellate courts, the Second and Third Circuits, that have squarely addressed the issue have both held Buckhannon applicable to the IDEA.3 See John T., 318 F.3d at 556; J.C., 278 F.3d at 125; see also Smyth v. Rivero, 282 F.3d 268, 274 (4th Cir. 2002) (stating that Buckhannon applies to all “prevailing party” fee-shifting provisions, regardless of “the particular statutory context.”); John & Leigh T. v. Iowa Dept. of Educ., 258 F.3d 860, 863-64 (8th Cir. 2001) (assuming that Buckhannon applies to the IDEA but not discussing the issue). Today, we join the Second and Third Circuits in holding that Buckhannon is applicable to the IDEA.
B. T.D.’s Status as a Prevailing Party Under Buckhannon
As noted above, Buckhannon held that to be a “prevailing party” a litigant must have obtained a judgment on the merits, a consent decree, or some similar form of judicially sanctioned relief. 532 U.S. at 603-04. In Buckhannon, the Court specifically noted that “[p]rivate settlement agreements do not entail the judicial approval and oversight involved in consent decrees. And federal jurisdiction to enforce a private contractual settlement will often be lacking unless the terms of the agreement are incorporated into the order of dismissal.” 532 U.S. at 604 n.7. Therefore, the Court left the clear impression that private settlements do not involve sufficient judicial sanction to confer “prevailing party” status. See Christina A. v. Bloomberg, 315 F.3d 990, 993 (8th Cir. 2003); Smyth, 282 F.3d at 279.
The merits of this case were ultimately resolved through a settlement between the parties. We agree with the Fourth Circuit’s recent conclusion that some settlement agreements, even though not explicitly labeled as a “consent decree” may confer “prevailing party” status, if they are sufficiently analogous to a consent decree. Smyth, 282 F.3d at 281. For instance, “[w]here a settlement agreement is embodied in a court order such that the obligation to comply with its terms is court-ordered, the court’s approval and the attendant judicial oversight (in the form of continuing jurisdiction to enforce the agreement) may be . . . functionally a consent decree.” Id; see also John T., 318 F.3d at 558 (stating that “a stipulated settlement could confer prevailing party status . . . . where it (1) contained mandatory language, (2) was entitled ‘Order,’ (3) bore the signature of the District Court judge, not the parties’ counsel, and (4) provided
The settlement agreement in this case does not bear any of the marks of a consent decree. It is not embodied in a court order or judgment, it does not bear the district court judge’s signature, and the district court has no continuing jurisdiction to enforce the agreement. Rather, it was merely a private settlement agreement between the parties. T.D. argues that because the district court was actively involved in the settlement negotiations, having conducted a settlement conference in his chambers and made certain settlement suggestions, that we should find that there was sufficient “judicial imprimatur” on the settlement to confer “prevailing party” status.
Mere involvement in the settlement, however, is not enough. There must be some official judicial аpproval of the settlement and some level of continuing judicial oversight. Buckhannon, 532 U.S. at 604 n.7; Smyth, 282 F.3d at 281. Therefore, we find that the settlement agreement reached in this case did not confer “prevailing party” status upon T.D.
T.D. asserts that even if he cannot be said to have prevailed via the settlement, that he was the “prevailing party” in the due process hearing and therefore should be compensated at least for that success. The parties do not dispute that the IDEA’s fee-shifting provision allows courts to grant attorney’s fees to parents who prevail in an administrative hearing. Indeed, we held in Brown v. Griggsville Comm. Unit Sch. Dist. No. 4, that the IDEA does allow fees to the prevailing party in administrative hearings. 12 F.3d 681, 683-84 (7th Cir. 1993). While we recognize that this opinion was issued before Buckhannon, we do not perceive that Buckhannon requires a different conclusion.
The IDEA’s fee-shifting provision allows attorney’s fees to the party that prevails “[i]n аny action or proceeding” brought under the IDEA.
The school district does not dispute that to the extent that T.D.’s parents prevailed at the due process hearing, they are eligible for fees for that success. The school district disputes only whether T.D. prevailed at the due process hearing at all. The Supremе Court has stated that a plaintiff may be considered a “prevailing party” if “they succeed on any significant issue in litigation which achieves some of the benefit the parties sought in bringing suit.” Hensley, 461 U.S. at 433 (noting that this is a “generous formulation”). We find that while T.D. did not succeed on every issue at the due process hearing, he did prevail on certain significant issues and achieved at least some of the benefit he sought.
The hearing officer partially granted T.D.’s requests for reimbursement for the costs of attending the private school, awarding reimbursement for the cost of the one-on-one aide and for transportation, but refusing to grant reimbursement for the cost of tuition. The hearing officer characterized this partial relief as an equitable award. He found that the private day school was not providing T.D. with an appropriate education; therefore, he did not award T.D. reimbursement for the cost of the tuition. The hearing officer, however, found that the school district was at least partly to blame for T.D.’s inappropriate placement at the private school since the school district failed to conduct аn evaluation of T.D. and failed to offer T.D. any formal placement proposal before the November 20, 1997 evaluation and conference. Considering these failures, the hearing officer ordered the school district to reimburse T.D. for the cost of the one-on-one aid from the time she was hired until T.D. could be enrolled in the public school. And the cost of transportation to the private school was also ordered to be reimbursed.
T.D. succeeded in obtaining the case-study evaluation that the school previously had not conducted and that ultimately led to the determination that he was eligible for benefits under the IDEA. This success coupled with the reimbursement he received for the cost of the one-on-one aid and transportation to the private school (which together added up to nearly $1200 a month) rendered T.D. a “prevailing party” in the administrative hearing. Therefore, we find that T.D. is entitled to attorney’s fees for prevailing at the administrative hearing.
C. Award of Expert Witness Fees
Finally, the school district challenges the district court’s award of expert witness fees to T.D. as part of the attorney’s fees and costs of the litigation. Because we determined that T.D. was a prevailing party as to the administrative hearing, we must consider whether T.D. should receive expert witness fees incurred as part of that hearing.
As cited above, the IDEA’s fee provision states:
In any action or proceeding brought under this section, the court, in its discretion, may award reasonable attorney’s fees as part of the costs to the parents of a child with a disability who is the prevailing party.
The only federal appellate court to address the issue of expert witness fees under the IDEA held that the IDEA did not contain the necessary explicit authority to exceed the amounts provided for in
Furthermore, in W. Va. Univ. Hosp., Inc. v. Casey, the Supreme Court was faced with the question of whether a former version
In so holding, the Court observed that Congress had specifically enacted several statutes that explicitly provided for the shifting of both attorney’s fees and expert witness fees. Id. at 88-89 (noting that “[a]t least 34 statutes in 10 different titles of the U.S. Code explicitly shift attorney’s fees and expert witness fees.”). The Court concluded that if it were to interpret a statute that provides only for attorney’s fees to actually allow shifting of both attorney’s fees and expert fees, the “dozens of statutes referring to the two separately [would] become an inexplicable
T.D. argues that the legislative history of the IDEA supports allowing expert witness fees to the prevailing party. That legislative history, in the form of a House Conference report, states:
The conferees intend that the term “attorney’s fees as part of the costs” include reasonable expenses and fees of expert witnesses and the reasonable costs of any test or evaluation which is found to be necessary for the preparation of the . . . case.
H.R. Conf. Rep. No. 99-687, аt 5 (1986), reprinted in 1986 U.S.C.C.A.N. 1807, 1808. We recognize that this report does appear to support T.D.’s position. The Eighth Circuit, however, rejected this identical argument, finding that since “[n]othing in the plain language of the statute indicates that the district court is authorized to exceed the limitations set out in § 1821 and § 1920,” there is no ambiguity in the statute, and therefore “no occasion to look to the legislative history.” Neosho, 315 F.3d at 1032 (citing Burlington N. R.R. v. Okla. Tax Comm’n, 481 U.S. 454, 461 (1987) (“Unless exceptional circumstances dictate otherwise, when we find the terms of a statute unambiguous, judicial inquiry is complete.”)).
The Casey Court in dicta characterized this portion of the IDEA’s legislative history as “an apparent effort to depart from ordinary meaning and to define a term of art,” noting that “the specification would have been quite unnecessаry if the ordinary meaning of the term included those elements.” 499 U.S. at 91 n.5. We agree with the Eighth Circuit’s determination that “this ‘apparent effort’ to define a term of art in legislative history is an unsuccessful one.” Neosho, 315 F.3d at 1032. The Supreme Court made clear in Crawford that “explicit statutory authorization” was necessary to allow courts to exceed the limitations of
III. Conclusion
We hold that the Supreme Court’s requirements for attaining prevailing party status set out in Buckhannon are applicable to the IDEA. We find that the settlement reached between the parties in this case was no more than a private agreement, lacking the judicial imprimatur to elevate T.D. to the status of prevailing party. T.D.’s success in the administrative hearing, however, does entitle him to receive attorney’s fees to the extent that he prevailed in that hearing. Finally, we hold that expert witness fees are not available to T.D. under the IDEA. Therefore, we AFFIRM in part and REVERSE in part. The case is REMANDED to the district court for a determination of the amount of attorney’s fees to which T.D. is entitled based on the degree of success he achieved in the administrative hearing.
A true Copy:
Teste:
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Clerk of the United States Court of Appeals for the Seventh Circuit
