Genesis School, INC v. Missouri State Board of Education

CourtMissouri Court of Appeals
DecidedApril 23, 2024
DocketWD86457
StatusPublished

This text of Genesis School, INC v. Missouri State Board of Education (Genesis School, INC v. Missouri State Board of Education) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Genesis School, INC v. Missouri State Board of Education, (Mo. Ct. App. 2024).

Opinion

In the Missouri Court of Appeals Western District

GENESIS SCHOOL, INC, ) ) Respondent, ) WD86457 ) V. ) OPINION FILED: ) APRIL 23, 2024 MISSOURI STATE BOARD OF ) EDUCATION, ) ) Appellant. )

Appeal from the Circuit Court of Cole County, Missouri The Honorable Cotton Walker, Judge

Before Division Three: Cynthia L. Martin, Presiding Judge, Mark D. Pfeiffer, Judge and Edward R. Ardini, Jr., Judge

The Missouri State Board of Education ("State Board") appeals from the trial

court's entry of a judgment that declared unlawful and arbitrary the State Board's decision

to revoke the charter of Genesis School, Inc. ("Genesis"). The State Board argues that

Genesis lacked standing to seek section 536.1501 review of the State Board's decision.

Finding no error, we affirm.

Factual and Procedural History2

1 All statutoryreferences are to RSMo 2016 as supplemented through December 15, 2022. 2 On appeal following a trial court's judgment in a section 536.150 proceeding to

review an administrative agency's decision in a non-contested case, we review the trial Genesis is a public charter school located in Kansas City, Missouri that educates

students in kindergarten through eighth grade. The State Board is charged with

supervising "the instruction in [] public schools" within the State of Missouri and serves

as the head of the Missouri Department of Elementary and Secondary Education

("DESE"). Mo. Const. art. IX § 2(a).

Genesis's first public charter sponsor was the University of Missouri-Kansas City

("UMKC"). After UMKC stopped sponsoring charter schools in 2018, Genesis's new

sponsor became the University of Missouri-Columbia ("MU"). In 2020, the State Board

authorized MU's renewal of Genesis's charter through June 2025. After the State Board

revoked MU's ability to serve as a sponsor for Genesis in 2022, the Missouri Charter

Public School Commission ("Commission") became Genesis's new sponsor. The

Commission is a state commission that sponsors public charter schools throughout the

state. The Commission and Genesis entered into a new charter agreement with a term

from July 1, 2022, until June 30, 2025. The new charter agreement between the

Commission and Genesis included a performance contract mandating performance goals

and a progressive notification system if Genesis was failing to meet those goals.

In September of 2022, the Commission sent Genesis a "Notice of Potential

Closure" letter informing Genesis that it anticipated closing the school at the end of the

2022-2023 school year. The Commission then sent a letter on December 15, 2022,

court's judgment, rather than the decision of the administrative agency. Ard v. Shannon County Comm'n, 424 S.W.3d 468, 473 (Mo. App. S.D. 2014). We "view the evidence in the light most favorable to the judgment, while disregarding all contrary evidence and permissible inferences." Id. 2 definitively informing Genesis that the Commission intended to revoke Genesis's charter.

Genesis timely requested a hearing before the Commission pursuant to section

160.405.8(3). On January 30, 2023, the Commission conducted a hearing pursuant to

procedures it had established as required by section 160.405.8(4). During that hearing,

the Commission presented evidence of the reasons for revocation of Genesis's charter,

and Genesis presented evidence refuting that there was a proper basis for revoking its

charter. On February 15, 2023, the Commission adopted a resolution revoking Genesis's

charter citing as the authority for its decision section 160.405.8(1)(b)(a), which authorizes

revocation of a charter "if there is clear evidence of underperformance as demonstrated in

the charter school's annual performance report in three of the last four school years." The

Commission's resolution notified Genesis that its decision was subject to an appeal to the

State Board pursuant to section 160.405.8(4).

By letter dated March 10, 2023, Genesis exercised its right to appeal the

Commission's revocation decision to the State Board. Genesis argued that the

Commission's revocation of Genesis's charter constituted a breach of the parties' charter

agreement, and that the Commission's decision to revoke the charter was unlawful

because it was not based on any allowable reason for revocation set forth by statute or in

the charter agreement. Genesis's written request for an appeal asked the State Board to

reverse the Commission's decision and to reinstate Genesis's charter.

The State Board considered Genesis's appeal during a regularly scheduled meeting

on April 24, 2023, that was conducted by video conference. The meeting was open to the

public for observation and began at 11:03 a.m. The minutes of the meeting reflect that 3 after conducting other regular business a motion was made and seconded to revoke

Genesis's charter. The motion passed and the State Board's meeting adjourned at 11:32.

Notes were prepared for the meeting by M.V., the Commissioner of Education and chief

administrative officer for the State Board. M.V.'s notes indicate that "based on all of the

materials submitted, it is clear that the [] Commission revocation process was deficient."

Among other things, the notes indicate that although the Commission's notice of

revocation cited Genesis's underperformance on the annual performance reports for three

of the last four years, the Commission acknowledged that it did not rely on annual

performance report scores when it decided to revoke Genesis's charter. The notes further

indicated that "[t]here are other legal concerns with how the [] Commission conducted

this revocation, as far as its policies, work with the charter, language in its performance

contract, and adherence to the requirements of the performance contract." The State

Board nonetheless voted to revoke Genesis's charter because it believed "Genesis has a

long history of failing to provide quality education for its students, and intervention by

the State Board to place it with a new sponsor was unsuccessful."

Following the State Board's decision, Genesis filed a petition for judicial review of

a noncontested administrative agency decision pursuant to section 536.150 in the Circuit

Court of Cole County, Missouri. In its petition, Genesis asserted Counts I through V

against the Commission and Count VI against the State Board. The State Board filed a

motion to dismiss Count VI arguing, (as it does in this appeal), that Genesis lacked

standing to seek judicial review under section 536.150 because it is a public entity. The

Commission also filed a motion to dismiss similarly arguing that Genesis lacked standing 4 to pursue judicial review under section 536.150 because it is a public entity. The trial

court denied both motions.

Prior to trial, the parties submitted a joint stipulation of facts and exhibits. During

trial some additional evidence was submitted although the State Board called no

witnesses. On June 21, 2023, the trial court entered a judgment ("Judgment") which

included findings of fact and conclusions of law. Among other things, the trial court

found with respect to the Commission that: (i) the Commission's published policies

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