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Grenon v. Taconic Hills Central School District

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK

KATHY GRENON, Parent of a disabled student, J.M.G.,

Plaintiff,

-against- 1:05-CV-1109 (LEK/RFT) TACONIC HILLS CENTRAL SCHOOL DISTRICT,

Defendant.

MEMORANDUM-DECISION AND ORDER

Plaintiff Kathy Grenon (hereinafter “Plaintiff”) brings this action pursuant to the Individuals

with Disabilities Education Act,1 20 U.S.C. § 1400 et seq. (hereinafter “IDEA”), on behalf of her

disabled child, J.M.G. (hereinafter “J.G.”), alleging that Taconic Hills Central School District

(hereinafter “Defendant”) denied a free appropriate public education to J.G. The State Review

Officer (hereinafter “SRO”) issued two decisions, SRO Decision No. 05-034, issued on May 4,

2005, and SRO Decision 05-056, issued on July 25, 2005, denying Plaintiff reimbursement of

tuition for the placement of her child at the Kildonan School. Having exhausted the administrative

remedies available to her, Plaintiff instituted the present action seeking tuition reimbursement for

the placement of J.G. at the Kildonan School. Presently before the Court is Defendant’s Motion to

dismiss the complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, and request

for attorneys’ fees.

1 The Act was amended and renamed as the Individuals with Disabilities Education Improvement Act, effective as of July 1, 2005. 20 U.S.C. § 1400 (P.L. 108-446 appearing as note to section). The amended Act became effective after the events surrounding Plaintiff’s claims.

I. BACKGROUND

A. Diagnosis of Disability and Development of IEP

In kindergarten, J.G. was diagnosed with Attention Deficit Disorder (“ADD”). Compl. (Dkt.

No. 1) at ¶ 8. When J.G. was in second grade, his mother obtained an independent educational

evaluation from a doctor, whose report confirmed the diagnosis of ADD and further determined that

J.G. had a language-based learning disability that affected J.G.’s reading and writing skills. Id. at ¶

10. On February 17, 2000, when J.G. was in third grade, Defendant’s Committee on Special

Education (hereinafter “CSE”) classified J.G. as learning disabled and developed an individualized

educational plan (“IEP”). Id. at ¶ 11. In the following years, the CSE continued providing J.G. with

an IEP that was adjusted prior to the beginning of every school year to reflect J.G.’s needs. Id. at ¶¶

12-18. During those years, Plaintiff became dissatisfied with what she perceived to be J.G.’s lack of

academic progress. Id.

B. Prior Hearings with Regard to 2003-04 School Year

On August 4, 2003, Plaintiff wrote to the CSE, rejecting the proposed IEP for the ensuing

academic year. Compl. (Dkt. No. 1) at ¶ 21. Furthermore, Plaintiff requested a hearing before an

impartial hearing officer (hereinafter “IHO”) and reimbursement for J.G.’s attendance at a summer

program for children with learning disabilities. Id. At the hearing, Plaintiff and Defendant entered

into a settlement agreement. Id. The parties agreed that a new IEP would be completed no later

than November 18, 2003. Id. However, a draft IEP was not developed until January 29, 2004. Id.

at ¶ 22. A revised IEP was presented to Plaintiff on February 20, 2004. Id.

In early January 2004, Plaintiff placed J.G. at the Kildonan School, a private school for

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students with reading disorders. Id. at ¶ 23. Subsequently, Plaintiff requested a hearing before an

IHO seeking tuition reimbursement for the period from January to May 2004. Id. at ¶ 24. Plaintiff

prevailed at the hearing, but the SRO reversed on appeal, concluding that Defendant had provided

J.G. with a free appropriate public education. Id. at ¶ 24; SRO Decision 04-068 (issued on Oct. 28,

2004).

C. First Hearing with Regard to 2004-05 School Year

The CSE developed a new IEP for J.G.’s eighth-grade education. Compl. (Dkt. No. 1) at ¶

25. The IEP placed J.G. in regular education classes and provided for one daily special education

session, consultant teacher services for English and weekly speech therapy. Id. Plaintiff rejected

the proposed IEP, notified the district of her intention to enroll J.G. at Kildonan, asked for

reimbursement of tuition, and requested that the school district provide her child with transportation

to Kildonan. Id. at ¶ 26; IHO Decision 1 (Dkt. No. 7, Attach. 1, Ex. B) at 3.

On September 7, 2004, Plaintiff formally requested an impartial hearing. Compl. (Dkt. No.

1) at ¶ 26. On September 9, 2004, Defendant appointed Joseph E. Wooley (hereinafter “IHO

Wooley”) as the impartial hearing officer. IHO Decision 1 (Dkt. No. 7, Attach. 1, Ex. B) at 3. On

September 23, 2004, during a conference call arranged by IHO Wooley, RosaLee Charpentier, Esq.,

Plaintiff’s counsel in the present case, informed IHO Wooley that she was not representing Plaintiff

in the impartial hearing and requested that Defendant’s counsel provide Plaintiff with a list of free

or low-cost attorneys. Id. Also during the conference call, counsel for Defendant stated that J.G.

would be picked up at a central location and transported to Kildonan. Id.

Subsequent to the conference call, IHO Wooley received a letter from Plaintiff, dated

September 23, 2004, stating that Plaintiff was withdrawing her hearing request without prejudice.

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Id. In the letter Plaintiff stated that she wanted to wait for the outcome of an appeal of a hearing

officer’s decision with regard to tuition reimbursement for the period from January to May 2004.2

Id. at 3-4. Plaintiff also asked that J.G. be transported to Kildonan from home. Id. at 4.

On October 6, 2004, IHO Wooley denied Plaintiff’s request for withdrawal from the hearing,

stating that Defendant would be prejudiced by a delay in the proceedings. Id. IHO Wooley further

stated that an expeditious resolution of the dispute would be in J.G.’s best interests, for it would

ensure J.G. access to an appropriate educational program without delay. Id.

Numerous telephone and e-mail conversations between IHO Wooley, Plaintiff and

Defendant’s counsel followed. Id. at 5-9. In these communications, Plaintiff reiterated her request

for withdrawal, premised mainly on her failure to obtain legal services; Defendant’s counsel

reiterated her intention to proceed with the hearing; and IHO Wooley denied Plaintiff’s request for

withdrawal for substantially the same reasons as before. Id. In denying Plaintiff’s request, IHO

Wooley further stated that Plaintiff had been provided with a list of free or low-cost legal services

and that Plaintiff was not entitled to withdrawal or continued adjournments just because she could

not find an attorney that suited her. Id. at 8.

Finally, on December 6, 2004, three months after Plaintiff’s initial request, a hearing was

held. Compl. (Dkt. No. 1) at ¶ 32. At the hearing, Plaintiff read a statement into the record,

reiterating her objections to the hearing and inability to proceed due to lack of representation, and

left in the middle of the proceedings. Id.; IHO Decision 1 (Dkt. No. 7, Attach. 1, Ex. B) at 9.

2 A decision with regard to this appeal was issued on October 28, 2004, over a month prior to the first impartial hearing at issue in this case. SRO Decision No. 04-068 (Dkt. No. 7, Attach. 1, Ex. A). The SRO denied Plaintiff reimbursement for placing J.G. at Kildonan from January to May 2004. Id.

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On January 24, 2005, IHO Wooley issued a decision denying tuition reimbursement to

Plaintiff for placing J.G. at the Kildonan School for the 2004-05 school year. IHO Decision 1 (Dkt.

No. 7, Attach. 1, Ex. B) at 16-19. In reaching the decision, IHO Wooley relied on the SRO Decision

of October 28, 2004, in which substantially the same issues were considered and a free appropriate

public education was found to have been offered by Defendant. Id. at 17. IHO Wooley compared

the IEP considered by the SRO and the IEP before him and found them to be comparable. Id. at 18.

Because Plaintiff had not provided any new information that would cause the CSE to make changes

to J.G.’s IEP, which was previously found to have been appropriate for J.G.’s educational needs,

IHO Wooley concluded that Defendant had provided J.G. with a free appropriate public education,

and, therefore, Plaintiff was not entitled to reimbursement of tuition and transportation costs. Id. at

18-19.

On March 14, 2005, Plaintiff filed a petition for review with the SRO. Compl. (Dkt. No. 1)

at ¶ 34; SRO Decision No. 05-034 (Dkt. No. 7, Attach. 1, Ex. C) at 4. The petition for review was

filed forty-nine (49) days after IHO Wooley’s decision. SRO Decision No. 05-034 (Dkt. No. 7,

Attach. 1, Ex. C) at 4. SRO Kelly dismissed the petition as untimely because it was not filed within

thirty-five (35) days of the impartial hearing officer’s decision in compliance with N.Y. COMP.

CODES R. & REGS. tit. 8, §§ 279.2, 279.13. Id. The SRO found Plaintiff’s reason for late filing -

that a person delegated with service was confused by Plaintiff’s counsel’s instructions and

misplaced the documents to be served - unpersuasive and did not excuse the delay. Id. at 4-5.

D. Second Hearing with Regard to 2004-05 School Year

On February 18, 2005, prior to filing a petition for review of IHO Wooley’s decision of

January 24, 2005, Plaintiff filed a second request for a hearing. IHO Decision 2 (Dkt. No. 7,

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Attach.1, Ex. D) at 1. Plaintiff was able to secure legal representation on January 18, 2005 and filed

the new request with the assistance of counsel. Compl. (Dkt. No. 1) at ¶ 37. Defendant forwarded

the request to IHO Wooley because the request was based on the same issues as those raised at the

first hearing. Id. at ¶ 38; IHO Decision 2 (Dkt. No. 7, Attach. 1, Ex. D) at 9. In anticipation of

actions taken by Plaintiff in requesting a second hearing, IHO Wooley had “retained jurisdiction

over the 2004-2005 school year” at the first hearing. IHO Decision 2 (Dkt. No. 7, Attach. 1, Ex. D)

at 12. On April 29, 2005, having concluded that Plaintiff’s second hearing request did not add any

new information, IHO Wooley dismissed the request on the basis of res judicata and collateral

estoppel. Id. at 9-11. Relying on prior decisions of the SRO, IHO Wooley also noted that Plaintiff’s

filing of a second hearing request on the same issues without awaiting the resolution of her appeal

of the first hearing decision was an abuse of the administrative process. Id. at 11.

Plaintiff also appealed IHO Wooley’s second decision of April 29, 2005. SRO Decision

No. 05-056 (Dkt. No. 7, Attach. 1, Ex. E) at 1. SRO Kelly affirmed the decision of IHO Wooley to

retain jurisdiction over the second hearing for the “narrow purpose of addressing any subsequent

hearing request which raised no new issues or complaints,” but noted that, generally, an impartial

hearing officer may not retain jurisdiction over subsequent hearings. Id. at 4. Finally, SRO Kelly

concluded that a reconsideration of the issues raised by Plaintiff was barred by res judicata and

collateral estoppel. Id.

II. DISCUSSION

A. Standard of Review of a Motion to Dismiss

In considering a motion to dismiss, the Court must accept as true the material facts alleged in

the complaint and draw all reasonable inferences in favor of the non-moving party. Burnette v.

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Carothers, 192 F.3d 52, 56 (2d Cir. 1999). The Court may dismiss the complaint only if “it appears

beyond doubt that the plaintiff can prove no set of facts in support of [her] claim which would

entitle [her] to relief.” Burnette, 192 F.3d at 56 (quoting Conley v. Gibson, 355 U.S. 41, 45-46

(1957)). Thus, the Supreme Court has held that “‘[t]he issue [on a motion to dismiss] is not whether

a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the

claim.’” Jackson v. Birmingham Bd. of Educ., 544 U.S. 167, 184 (2005) (quoting Scheuer v.

Rhodes, 416 U.S. 232, 236 (1974)).

B. Standard of Review in IDEA Cases

Plaintiffs who bring suit pursuant to the IDEA must first exhaust the state administrative

remedies available to them. 20 U.S.C. § 1415(i)(2) (2000); Riley v. Ambach, 668 F.2d 635, 640 (2d

Cir. 1981); Fennell v. Cortines, 69 F.3d 687, 688 (2d Cir. 1995). The decisions of the state

administrative agencies are then subject to independent judicial review. Walczak v. Florida Union

Free Sch. Dist., 142 F.3d 119, 129 (2d Cir. 1998) (quoting Board of Educ. v. Rowley, 458 U.S. 176,

205 (1998)). In Rowley, the Supreme Court stated that, when reviewing state administrative

decisions, courts must give “due weight” to these proceedings. Rowley, 458 U.S. at 206. The

Second Circuit further elaborated that “deference is particularly appropriate when . . . the state

hearing officers’ review has been thorough and careful.” Walczak, 142 F.3d at 129.

There is no dispute in this case that Plaintiff has exhausted her administrative remedies.

Therefore, Plaintiff has properly asserted her right to bring suit in this Court.

C. Timeliness of Appeal of First Impartial Hearing Decision

A plaintiff seeking review of a decision by an impartial hearing officer must file the petition

for review within thirty-five (35) days from the date of the decision. N.Y. COMP. CODES R. & REGS.

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tit. 8, § 279.2(b) (2006). Upon a showing of good cause, the SRO may, in the SRO’s sole

discretion, excuse a late filing. N.Y. COMP. CODES R. & REGS. tit. 8, § 279.13 (2006).

While there is a dearth of authority related to judicial review of SRO decisions dismissing

appeals for untimeliness, two decisions offered by Defendant’s counsel provide some guidance. In

one case, the court held that the SRO’s decision to dismiss a party’s appeal for untimeliness “‘will

be upheld on review unless it is arbitrary and capricious.’” Murphy v. Arlington Cent. Sch. Dist. Bd.

of Educ., 99 Civ. 9294, 1999 U.S. Dist. LEXIS 16863, at *8-*9 (S.D.N.Y. Oct. 28, 1999) (citing

Davis v. Comm’r of Educ., 189 A.D. 2d 1046, 1047 (N.Y. App. Div., 3d Dep’t 1993)), rev’d on

other grounds, Arlington Cent. Sch. Dist. Bd. of Educ. v. Murphy, 126 S. Ct. 2455 (2006).

Additionally, 20 U.S.C. § 1415(i)(1)(A) states that “a decision made in a hearing . . . shall be

final, except that any party involved in such hearing may appeal such decision . . . .” The Court in

Murphy interpreted this provision to mean that a failure to file a timely appeal is equivalent to

failing to appeal at all, and this renders the IHO decision final. Murphy, 1999 U.S. Dist. LEXIS

16863, at *7-*8.

In another case, in which the timeliness of a petition for review by the SRO was at issue, the

Court limited its review to the issue of timeliness and did not address the substance of the claims

raised before the Court. Gagliardo v. Arlington Cent. Sch. Dist., 373 F. Supp. 2d 460 (S.D.N.Y.

2005). Upon finding that the SRO erred in basing his determination of untimeliness upon an

unwarranted assumption, the Court remanded the case for a further determination by the SRO. Id. at

461. The Court’s holding in Gagliardo implies that when the timeliness of an appeal is in issue,

review by a court of law is limited to that issue alone and does not extend to the merits of the

underlying claims.

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After reviewing the first SRO decision, the Court concludes that the SRO’s decision to

dismiss the complaint as untimely was not arbitrary or capricious. Plaintiff concedes that she filed

her petition for review in an untimely manner. Compl. (Dkt. No. 1) at ¶ 34. Plaintiff alleges that

the complaint was filed 6 days late, while SRO Kelly concluded that the petition was filed 49 days

after the date of the impartial hearing officer’s decision. SRO Decision 05-034 (Dkt. No. 7, Attach.

1, Ex. C) at 4. SRO Kelly is correct in his determination that the petition for review was filed 49

days after the date of the impartial hearing officer’s decision and, therefore, not within the period

contemplated by N.Y. COMP. CODES R. & REGS. tit. 8, § 279.2(b). IHO Wooley’s decision is dated

January 24, 2004. Plaintiff served the petition for review on March 14, 2005. Compl. (Dkt. No. 1)

at ¶ 34. The filing of the petition occurred 49 days after IHO Wooley issued his decision.

As cause for the late filing, Plaintiff’s counsel stated that the papers were not served in time

because Plaintiff’s family member, who had been delegated with the service of the papers,

misplaced the documents. SRO Decision 05-034 (Dkt. No. 7, Attach. 1, Ex. C) at 4. SRO Kelly

found Plaintiff’s cause for the late filing unpersuasive, stating that Plaintiff’s counsel was

experienced in matters such as this one and had participated in numerous appeals before the SRO in

the past. Id. at 4-5. Good cause for late filing would be something like postal service error, or, in

other words, an event that the filing party had no control over. Application of a Child with a

Disability, Appeal No. 03-007. In short, Plaintiff’s counsel cannot be said to be unaware of certain

time limitations imposed on parties challenging IHO decisions, and it was her duty to comply with

the rules for filing.

Lastly, allowing Plaintiff to raise the merits of the complaint heard by IHO Wooley in this

action would circumvent the procedures established for litigating IDEA claims. Although

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Plaintiff’s grievance with IHO Wooley’s determinations may have merit, she should have raised it

on appeal to the SRO in accordance with 20 U.S.C. § 1415(i)(1)(A). Review by the SRO is an

essential step in the process of resolving an IDEA claim. To allow Plaintiff to assert claims that she

failed to assert before the SRO due to her non-compliance with the applicable procedures would be

tantamount to cutting the SRO out of the process for resolving IDEA claims.

D. Dismissal of Second Appeal under Res Judicata and Collateral Estoppel

The doctrine of res judicata “precludes parties from litigating issues ‘that were or could have

been decided in a prior proceeding.’” Perez v. Danbury Hosp., 347 F.3d 419, 426 (2d Cir. 2003)

(quoting Monahan v. N.Y. City Dep’t of Corr., 214 F.3d 275, 284-85 (2d Cir. 2000), quoting in turn

Allen v. McCurry, 449 U.S. 90, 94 (1980)). To prove res judicata, “a party must show that 1) the

previous action involved an adjudication on the merits; 2) the previous action involved the Plaintiffs

or those in privity with them; and 3) the claims asserted in the subsequent action were, or could

have been, raised in the prior action.” Monahan, 214 F.3d at 285.

The related doctrine of collateral estoppel precludes parties from litigating “a legal or factual

issue already decided in an earlier proceeding.” Perez, 347 F.3d at 426; Boguslavsky v. Kaplan, 159

F.3d 715, 719-20 (2d Cir. 1998). Collateral estoppel prevents the relitigation of issues from a prior

proceeding when a four-part test is met: “(1) the identical issue was raised in a previous proceeding;

(2) the issue was ‘actually litigated and decided’ in the previous proceeding; (3) the party had a ‘full

and fair opportunity’ to litigate the issue; and (4) the resolution of the issue was ‘necessary to

support a valid and final judgment on the merits.’” Boguslavsky, 159 F.3d at 720 (quoting

Interoceanica Corp. v. Sound Pilots, Inc. 107 F.3d 86, 91 (2d Cir. 1997) (further citations omitted));

see also United States v. United States Currency in the Amount of $119,984.00, 304 F.3d 165, 172

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(2d Cir. 2002).

After reviewing the second SRO decision, this Court concludes that SRO Kelly correctly

determined that Plaintiff was barred from relitigating the issues by the doctrines of res judicata and

collateral estoppel. IHO Wooley and SRO Kelly both concluded that Plaintiff requested the second

hearing in order to address the same issues as in the first hearing. IHO Decision 2 (Dkt. No. 7,

Attach.1, Ex. D) at 8-9; SRO Decision No. 05-056 (Dkt. No. 7, Attach. 1, Ex. E) at 2. Moreover, in

her complaint, Plaintiff does not allege that she raised any new issues in her request for a second

hearing.

In his second decision, SRO Kelly cited numerous SRO decisions barring the relitigation of

issues resolved in prior proceedings. SRO Decision No. 05-056 (Dkt. No. 7, Attach. 1, Ex. E) at 3.

While noting that there is no authority for the proposition that IHO’s may assume jurisdiction to

resolve future disputes between the same parties, SRO Kelly affirmed IHO Wooley’s decision to

retain jurisdiction in this case for the “narrow purpose of addressing any subsequent hearing request

which raised no new issues or complaints.” SRO Decision No. 05-056 (Dkt. No. 7, Attach. 1, Ex.

E) at 4. However, even if IHO Wooley erred in retaining jurisdiction over disputes between

Plaintiff and Defendant arising after the first impartial hearing, the error was harmless. If an IHO

other than IHO Wooley was appointed to conduct the second impartial hearing, a reconsideration of

the issues would still have been barred by res judicata and collateral estoppel.

E. Attorneys’ Fees

Prior to the reauthorization of IDEA, “[i]n 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.” 20 U.S.C. § 1415(i)(3)(B) (2000).

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This section was amended and now authorizes a court, in its discretion, to award attorneys’ fees to a

prevailing state educational agency from the attorney of a parent who filed a frivolous claim or,

alternatively, from the attorney of a parent, or against the parent, if the complaint was filed for

purposes of harassment, unnecessary delay, or increasing the cost of litigation. 20 U.S.C. §

1415(i)(3)(B)(II)-(III) (Supp. 2006).

In a case decided long before the 2005 reauthorization of IDEA, a court in this District held

that “where a trial court determines that a Plaintiff has brought an action under [20 U.S.C. § 1415]

in bad faith, the district court has the inherent authority to award attorney fees to the prevailing

Defendant.” Hiller v. Board of Educ. of Brunswick Cent. Sch. Dist., 743 F. Supp. 958, 976

(N.D.N.Y. 1990) (McCurn, D.J.). It must, nevertheless, be noted that the statutory language,

whether before or after the amendment, gives the trial court discretion in awarding attorneys’ fees.

In this case, there is insufficient evidence of bad faith on the part of Plaintiff in bringing her

complaint. Even though Plaintiff filed a request for a second hearing prior to receiving a decision

on her first appeal of IHO Wooley’s decision, the Court cannot conclude that she did so frivolously

or in order to harass Defendant. IHO Decision 2 (Dkt. No. 7, Attach.1, Ex. D) at 11. On the basis

of the administrative record, it appears that Plaintiff was genuinely dissatisfied with the manner in

which the impartial hearing process was conducted and zealously sought a remedy.

After reviewing the administrative record, the Court concludes that Defendant’s request for

attorneys’ fees must be denied.

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III. CONCLUSION

For the reasons stated above, it is hereby

ORDERED, that Defendant’s Motion to Dismiss (Dkt. No. 7) is GRANTED; and it is

further

ORDERED, that Defendant’s request for attorneys’ fees (Dkt. No. 7) is DENIED; and it is

further

ORDERED, that Plaintiff’s Complaint (Dkt. No. 1) is DISMISSED in its entirety; and it is

further

ORDERED, that the Clerk of the Court shall serve copies of this Order by regular mail

upon the parties to this action.

IT IS SO ORDERED.

DATED: December 19, 2006 Albany, New York

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