Charter School of Pine Grove, Inc. v. St. Helena Parish School Board

9 So. 3d 209, 2007 La.App. 1 Cir. 2238, 2009 La. App. LEXIS 248, 2009 WL 412901
CourtLouisiana Court of Appeal
DecidedFebruary 19, 2009
Docket2007 CA 2238
StatusPublished
Cited by19 cases

This text of 9 So. 3d 209 (Charter School of Pine Grove, Inc. v. St. Helena Parish School Board) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charter School of Pine Grove, Inc. v. St. Helena Parish School Board, 9 So. 3d 209, 2007 La.App. 1 Cir. 2238, 2009 La. App. LEXIS 248, 2009 WL 412901 (La. Ct. App. 2009).

Opinions

PARRO, J.

|2The St. Helena Parish School Board (the Board) appeals a judgment in favor of the Charter School of Pine Grove, Inc. (Pine Grove), declaring that a valid contract existed between the parties for the establishment and operation of a Type 1 charter school in St. Helena Parish and that the Board breached that contract by attempting to rescind it and by not responding timely to Pine Grove’s attempts to start the charter school. The judgment ordered a contract extension for five years, beginning with the 2007-08 school year, issued a permanent injunction against the Board from interfering with the contract, and ordered the Board to promptly perform its ministerial duties to proceed with the contract. For the following reasons, we amend the judgment in part and affirm as amended.

FACTUAL AND PROCEDURAL BACKGROUND

On April 19, 2004, after months of discussions, the Board voted in a public meeting to approve a Type 1 charter school for Pine Grove.1 The Board’s president, James Baker, signed the contract at that meeting, and it was signed by Pine Grove on April 28, 2004. The contract, entitled “Charter School Agreement,” provided for a five-year term, beginning with the 2004-OS school year. On May 21, 2004, the Board and Pine Grove jointly filed a “Motion for Authorization to Operate Charter School” in the United States District Court for the Middle District of Louisiana, pur[214]*214suant to an order in an existing desegregation case, seeking approval for Pine Grove to' operate a Type 1 charter school as outlined in the Charter School Agreement. That approval was granted in a consent order signed on December 2, 2004.2

After the contract had been signed by the parties and authorized by the federal district court, the Board received a financial analysis from a school district employee, indicating that the transfer of the state’s Minimum Foundation Program (MFP) funds to Pine Grove could cause a financial hardship for the rest of the parish public school |3system, prompting the Board to attempt rescission of the Charter School Agreement. On February 5, 2005, the Board voted to rescind its prior action of entering into the contract with Pine Grove. Upon learning of this action, Gary Wheat, the Board of Elementary and Secondary Education (BESE) administrator of the state’s charter school program, put the federal grant funding process for Pine Grove on hold and told Pine Grove that since BESE had no guarantee that the school would open, Pine Grove would not be eligible for federal grant money.' Wheat then sought guidance from BESE’s attorneys and from the U.S. Department of Education, which controlled the grant funding, concerning what BESE’s future actions should be with respect to Pine Grove.

On February 15, 2005, Pine Grove filed this lawsuit against the Board, seeking a declaratory judgment, injunctive relief, a writ of mandamus, and alternatively, damages for breach of contract.3 After a hearing, the court declared that a valid contract had been formed and that the Board’s efforts to rescind the contract were null and void, because the votes — 3 to rescind, 2 against, and 1 abstention — did not constitute a majority of the six-person Board, as required by law for its decisions.4 The court further found that the Board had tried to obstruct Pine Grove’s efforts, thus potentially causing irreparable harm due to the time constraints of the contract. In a judgment dated May 13, 2005, the court granted a preliminary injunction, prohibiting the Board from disposing of, alienating, or encumbering any of the funds that would be allotted to Pine Grove. The judgment also enjoined the Board from preventing any of the ministerial duties required to allow Pine Grove to proceed and from enforcing its resolution of February 5, 2005, which purportedly rescinded or revoked approval of the Charter School Agreement. The judgment made the writ of mandamus peremptory, ordering the Board to perform the ministerial duties required to allow Pine Grove to open and ^operate a charter school, including the transfer to Pine Grove of MFP funds delivered to the Board for the operation of Pine Grove’s charter school.5,6

[215]*215Despite this judgment, on June 1, 2005, Baker wrote a letter to Wheat, in which he said that “it is highly unlikely that the Pine Grove Charter School will open in St. Helena Parish for the upcoming school year, if ever.” The letter raised “serious concerns regarding school desegregation” issues, suggesting the ultimate purpose of the charter school proponents was “to use public school dollars as leverage to finance construction of a private school catering primarily to the white community.” The letter further emphasized that the Board “had been misinformed by the advocates and the charter school as proposed would bankrupt the St. Helena school system.” Baker asked BESE to join the Board’s efforts to resist the creation of the Pine Grove charter school.

Eventually, in light of the court’s preliminary injunction and mandamus ruling, Wheat received assurances from federal authorities that grant money could be released and paid to Pine Grove over a three-year period. In an e-mail dated November 23, 2005, Wheat apprised Pine Grove that it could apply for grant funding, but warned that once it received the first year’s grant, a thirty-six-month time period would begin running. Only eighteen months of that period could be used for planning and program design. Wheat advised that if Pine Grove did not succeed in timely opening and operating the charter school, the second and third years’ grants would be forfeited. He later testified that those grants were worth $200,000 for each year. Wheat noted that as a result of the litigation, Pine Grove’s school opening had already been delayed twelve months, and warned that if the lawsuit “drags on for another 12, 18, 24 months or more,” preventing opening of the school, Pine Grove might exhaust its eligibility for federal grant funding before the school opened.

Because of the delays inherent in the litigation process and the uncertainties engendered by the Board’s actions, Pine Grove decided not to apply for grant money until a final judgment was rendered in this litigation. In January 2006, Pine Grove filed | 6a supplemental petition, adding a request for specific performance of the contract and for an extension of its term to allow Pine Grove to have a full five-year charter.

Along with its supplemental petition, Pine Grove filed a motion to hold the Board in contempt for violating the court’s injunction and mandamus orders. It contended the Board had refused to institute the necessary contacts and communications with Pine Grove in order to permit Pine Grove to comply with provisions of the Charter School Law relating to operations, transportation, staffing, facility construction, academic performance requirements, and related matters. Pine Grove further contended that the Board had authorized its attorney to engage in a pattern of litigation and other activities designed to delay, impair, impede, and/or prevent Pine Grove’s efforts to commence operation, all for the purpose of causing its charter to lapse. After a hearing on February 24, 2006, the court found the Board was in contempt and ordered it to comply with the injunction and mandamus and to meet with Pine Grove’s representatives within thirty days toward accomplishment of that end.7

[216]

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Bluebook (online)
9 So. 3d 209, 2007 La.App. 1 Cir. 2238, 2009 La. App. LEXIS 248, 2009 WL 412901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charter-school-of-pine-grove-inc-v-st-helena-parish-school-board-lactapp-2009.