L.C. v. Alta Loma Sch. Dist.
This text of 389 F. Supp. 3d 845 (L.C. v. Alta Loma Sch. Dist.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
HON. STEPHEN V. WILSON, UNITED STATES DISTRICT JUDGE
I. Introduction
Plaintiff L.C. initiated this action seeking review of the decision of an administrative law judge (the "ALJ") with the California Office of Administrative Hearings ("OAH"), in which the ALJ denied Plaintiff's due process complaint pursuant to the Individuals with Disabilities Education Act,
On March 25, 2019, the Court held a pretrial conference to better assess the parties' substantive arguments regarding Plaintiff L.C.'s claim for review of the administrative hearing. Following the pretrial conference, the Court continued the bench trial date and requested supplemental briefing regarding outstanding issues not addressed at the pretrial conference. See Dkt. 50. After the parties submitted their supplemental briefs, the Court vacated *849the bench trial and took the case under submission. See Dkt. 55.
Having carefully reviewed and considered the administrative record, supplemental evidence presented, and the parties' trial briefs, the Court issues the following findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52(a).
II. Findings of Fact
The following findings of fact are based on (1) the administrative record for the underlying proceedings before OAH, lodged by Plaintiff on February 14, 2019, see Dkt. 37; (2) the declaration of Tania L. Whiteleather, Dkt. 28-4 ("Whiteleather Decl."), and accompanying Exhibits 1-6, Dkts. 28-5-28-10;1 (3) the declaration of Maryam Rastegar, Dkt. 43-3 ("Rastegar Decl."), and attached Exhibits A-F; and (4) the declaration of Jonathan P. Read, Dkt. 43-4 ("Read Decl."), and accompanying appendix of exhibits, Dkt. 43-5.2
A. Plaintiff Requests an IEE
During the relevant time period at issue in this case, Plaintiff was 11 years old and attended sixth grade at a school within the District. See Administrative Record ("AR") 356.
On August 10, 2017, Plaintiff's advocate, Peter Attwood, emailed the District and represented that Plaintiff had not received a proper assessment for special educational needs over at least the prior two years. See AR 341. Attwood conveyed Plaintiff's interest in having the District agree to assess Plaintiff in all suspected areas of suspected disability, including assessments for neuropsychological issues, auditory processing, motor coordination, and other communication skills. See AR 341-42. In response, the District sent a letter to Plaintiff's parents on August 17, 2017, attaching a proposed assessment plan for Plaintiff. AR 337-40. Attwood responded to the District's letter by email on August 21, 2017, finding the District's proposed assessment plan "largely acceptable" but requesting that Plaintiff receive an IEE for visual processing and other assessment areas not relevant to the instant dispute. See AR 342-43.
On August 31, 2017, the District sent Plaintiff a "prior written notice" letter pursuant to
*850The Policy provides that, if a student's requested IEE exceeds the maximum allowable cost for that form of evaluation as set forth in the Policy, the student's parent must demonstrate "unique circumstances" that justify exceeding the cost criteria. AR 321. The cost of the evaluation is considered to include "observations, administration and scoring of tests, report writing, and attendance ... at the [individualized education plan] team meeting to discuss the findings if invited by the school district."
B. Plaintiff Selects a Visual Processing Evaluator
On September 12, 2017, Plaintiff's mother emailed the District, stating that she selected Dr. Douglas Stephey, who was not on the SELPA's list of independent evaluators, as her preferred independent evaluator for visual processing. AR 252. On September 26, 2017, the District requested that Plaintiff's mother provide a copy of Dr. Stephey's curriculum vitae and rate sheet so that the District can determine whether Dr. Stephey satisfied the IEE criteria in the Policy. AR 255.
Dr. Stephey emailed the District directly on October 3, 2017, noting that Plaintiff's parents asked him to forward his curriculum vitae and rate sheet to the District. See AR 307. Dr. Stephey explained to the District that "I work collaboratively with about 30 districts and have never had a parent have to track down this information."
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HON. STEPHEN V. WILSON, UNITED STATES DISTRICT JUDGE
I. Introduction
Plaintiff L.C. initiated this action seeking review of the decision of an administrative law judge (the "ALJ") with the California Office of Administrative Hearings ("OAH"), in which the ALJ denied Plaintiff's due process complaint pursuant to the Individuals with Disabilities Education Act,
On March 25, 2019, the Court held a pretrial conference to better assess the parties' substantive arguments regarding Plaintiff L.C.'s claim for review of the administrative hearing. Following the pretrial conference, the Court continued the bench trial date and requested supplemental briefing regarding outstanding issues not addressed at the pretrial conference. See Dkt. 50. After the parties submitted their supplemental briefs, the Court vacated *849the bench trial and took the case under submission. See Dkt. 55.
Having carefully reviewed and considered the administrative record, supplemental evidence presented, and the parties' trial briefs, the Court issues the following findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52(a).
II. Findings of Fact
The following findings of fact are based on (1) the administrative record for the underlying proceedings before OAH, lodged by Plaintiff on February 14, 2019, see Dkt. 37; (2) the declaration of Tania L. Whiteleather, Dkt. 28-4 ("Whiteleather Decl."), and accompanying Exhibits 1-6, Dkts. 28-5-28-10;1 (3) the declaration of Maryam Rastegar, Dkt. 43-3 ("Rastegar Decl."), and attached Exhibits A-F; and (4) the declaration of Jonathan P. Read, Dkt. 43-4 ("Read Decl."), and accompanying appendix of exhibits, Dkt. 43-5.2
A. Plaintiff Requests an IEE
During the relevant time period at issue in this case, Plaintiff was 11 years old and attended sixth grade at a school within the District. See Administrative Record ("AR") 356.
On August 10, 2017, Plaintiff's advocate, Peter Attwood, emailed the District and represented that Plaintiff had not received a proper assessment for special educational needs over at least the prior two years. See AR 341. Attwood conveyed Plaintiff's interest in having the District agree to assess Plaintiff in all suspected areas of suspected disability, including assessments for neuropsychological issues, auditory processing, motor coordination, and other communication skills. See AR 341-42. In response, the District sent a letter to Plaintiff's parents on August 17, 2017, attaching a proposed assessment plan for Plaintiff. AR 337-40. Attwood responded to the District's letter by email on August 21, 2017, finding the District's proposed assessment plan "largely acceptable" but requesting that Plaintiff receive an IEE for visual processing and other assessment areas not relevant to the instant dispute. See AR 342-43.
On August 31, 2017, the District sent Plaintiff a "prior written notice" letter pursuant to
*850The Policy provides that, if a student's requested IEE exceeds the maximum allowable cost for that form of evaluation as set forth in the Policy, the student's parent must demonstrate "unique circumstances" that justify exceeding the cost criteria. AR 321. The cost of the evaluation is considered to include "observations, administration and scoring of tests, report writing, and attendance ... at the [individualized education plan] team meeting to discuss the findings if invited by the school district."
B. Plaintiff Selects a Visual Processing Evaluator
On September 12, 2017, Plaintiff's mother emailed the District, stating that she selected Dr. Douglas Stephey, who was not on the SELPA's list of independent evaluators, as her preferred independent evaluator for visual processing. AR 252. On September 26, 2017, the District requested that Plaintiff's mother provide a copy of Dr. Stephey's curriculum vitae and rate sheet so that the District can determine whether Dr. Stephey satisfied the IEE criteria in the Policy. AR 255.
Dr. Stephey emailed the District directly on October 3, 2017, noting that Plaintiff's parents asked him to forward his curriculum vitae and rate sheet to the District. See AR 307. Dr. Stephey explained to the District that "I work collaboratively with about 30 districts and have never had a parent have to track down this information."
On October 13, 2017, the District sent a letter to Plaintiff's parents, informing them that Dr. Stephey "does not meet the cost maximum" under the Policy. AR 256. The District requested that Plaintiff's parents provide written justification as to the unique circumstances warranting an assessment above the cost cap in the Policy.
On October 19, 2017, Attwood emailed the District to contest the District's position regarding Dr. Stephey's IEE for visual processing. See AR 258. Attwood requested additional information on what the District interpreted to be the Policy's cost cap for visual processing, as well as what Dr. Stephey represented to the District regarding his charged rates.
On November 2, 2017, the District sent another letter to Plaintiff's parents, again requesting written justification for Dr. Stephey's evaluation exceeding the Policy's cost cap. AR 280-81. The District followed up with another letter requesting this information on November 7. See AR 262.
C. The Parties File Due Process Complaints
On November 15, 2017, Plaintiff's mother emailed the District, stating her intention to cancel an upcoming IEP meeting because Plaintiff had not yet received all of his IEE assessments. AR 278. Plaintiff's mother repeated that the District has not identified how Dr. Stephey does not satisfy the Policy's cost cap, and Plaintiff's mother asserted that the District's continued efforts to seek written justification as to unique circumstances justifying an IEE in excess of the cost cap "make[s] it clear that you simply do not intend to respond" to Plaintiff's parents' request for an IEE from Dr. Stephey.
The District responded the same day by offering that the parties attend an alternative dispute resolution meeting to resolve the parties' "misunderstanding or a difference of opinion on how these matters are to be handled."
The ALJ determined that the District was on Thanksgiving break between November 18 and November 26, 2017, and therefore the District did not imminently respond to Attwood's November 15 email. AR 357.
On November 30, 2017, Plaintiff's mother emailed the District in response to a letter from the District dated November 17, 2017. See AR 265. The District's letter, which does not appear to be part of the administrative record in this case, purportedly made the same requests as the District's prior letters asking for written justification as to why Dr. Stephey's visual processing IEE should exceed the Policy's cost cap.
The next day, December 1, the District emailed Plaintiff's mother, stating that "the District will request a due process hearing regarding your request for Dr. Stephey to conduct a vision therapy IEE" but invited Plaintiff's mother to select other assessors that meet the Policy's cost criteria or to schedule an alternative dispute resolution meeting.
Interestingly, Plaintiff and the District were able to resolve a disagreement about the cost of a different IEE Plaintiff requested, regarding neuropsychological issues. The District had represented in the December 1 email that the costs of the neuropsychological IEE to be performed by Plaintiff's selected evaluator, Dr. Robin Morris, exceeded the Policy's cost criteria. See AR 265. In the December 4 letter, the District changed course and approved Dr. Morris's IEE. AR 263. In email correspondence that same day, the District explained that Lord, the SELPA's program manager, had contacted Dr. Morris directly, and Dr. Morris agreed to adjust her rate sheet to fit within the Policy's cost criteria. AR 267. When Plaintiff's mother asked if such a solution would be possible for Dr. Stephey as well, the District responded that it would "inquire at our SELPA and if the situation changes, I will contact you."
Nevertheless, on December 5, 2017, the District filed a due process complaint against Plaintiff, which was designated OAH Case No. 2017120261. See AR 1-8. In the complaint, the District requested a hearing regarding the issue of whether Plaintiff is entitled to a vision therapy IEE "by an evaluator of [Plaintiff's] choice who does not meet the requirements of the IEE policy." AR 6. In the complaint, the District asserted that the Policy's cost cap for visual perception IEEs was $1,000, and that Dr. Stephey's proposed IEE would cost $1,380 above the cost cap. AR 7.
The ALJ found that Attwood did not know that Dr. Stephey's fee was around $2,400 until reading the District's complaint. AR 358. At the hearing, Attwood opined that such a fee was "high," and Attwood apparently reached out to Dr. Stephey to convince him to lower his fees after the District filed its due process complaint.
On December 26, 2017, Plaintiff filed his own due process complaint against the District, designated OAH Case No. 2017120979. See AR 74-78. Plaintiff raised two issues, the first pertaining to whether Plaintiff was denied meaningful assessment *853prior to August 17, 2017 and the second regarding whether the District unnecessarily delayed in filing its due process complaint about Dr. Stephey's IEE. See AR 77-78. On January 2, 2018, OAH consolidated Plaintiff's due process complaint with that of the District. AR 107-08.
D. The Parties' Efforts to Settle the Due Process Complaints
In Plaintiff's due process complaint, Plaintiff requested a date for mediation between Plaintiff and the District. AR 74. The parties participated in a resolution session on January 30, 2018, and prior to the meeting the parties executed a confidentiality agreement. See Rastegar Decl. ¶ 7;
Following the resolution session, the parties evidently agreed in principle on terms to resolve their respective due process complaints. On February 1, 2018, Rastegar emailed Plaintiff's mother, stating that "I understand that you are reviewing the settlement agreement [reached at the resolution session] and have a few proposed changes."
On February 8, 2018, Plaintiff retained Tania L. Whiteleather to represent Plaintiff in connection with the administrative proceedings. AR 123. The same day, Plaintiff filed a motion for continuance of the due process hearing then scheduled for February 20, 2018, which the District did not oppose and which the ALJ later granted. See AR 125-26; AR 131-32; AR 140-42. Also that same day, Attwood emailed the District and its counsel, stating that "on the advice of counsel, Tania Whiteleather, we are renewing our offer to settle the District case ... for $1000 of public funding of the IEE" to be performed by Dr. Stephey. Rastegar Decl. Ex. D.
On February 9, 2018, Rastegar responded to Attwood's email by attaching a copy of the settlement agreement purportedly memorializing the parties' agreement as embodied by Attwood's offer. See
On February 12, 2018, Whiteleather sent a letter to Rastegar and Jonathan P. Read, also representing the District. See Dkt. 28-5. Whiteleather repeated Plaintiff's parents' offer "to pay the amount of Dr. Stephey's visual processing IEE that is over and above $1,000."
On February 14, 2018, Read responded to Whiteleather's letter to address Whiteleather's dissatisfaction with the proposed settlement agreement. See Dkt. 43-5 Ex. A. Read made the following representations to Whiteleather: (1) the District denied Whiteleather's request to remove the provision that the agreement arose out of the January 30 resolution session; (2) the District denied Whiteleather's request to treat payment for Dr. Stephey's attendance at an IEP meeting separately from the District's cost criteria, because the Policy includes IEP meeting attendance as part of the cost calculation; (3) the District represented that it would agree to make payment for the IEE to Dr. Stephey directly, rather than reimburse Plaintiff's parents for payment, only if Dr. Stephey's evaluation did not exceed the $1,000 cost cap; (4) the District denied Whiteleather's request to remove the indemnification provision; (5) the District agreed to revise the release of claims provision to limit its applicability only to claims "raised" in the administrative complaints at issue; and (6) the District agreed to pay for Plaintiff's attorneys' fees in the amount of $1,000.
The District did not receive a response to Read's February 14 letter. Read Decl. ¶ 5. On March 8, 2018, Read emailed Whiteleather to follow up on the revised settlement agreement. Dkt. 43-5 Ex. B. In response, Whiteleather requested that Read re-send the email containing the proposed settlement agreement.
Later that same day, Whiteleather sent an email to Read responding to the District's changes to the settlement agreement, stating that "I had thought a response to the February 14th offer had been sent to your office; my apologies if you did not receive it."
On March 19, 2018, Read sent an email responding to Whiteleather's requests regarding the settlement agreement. See
After receiving no response from Whiteleather, Read sent another email on March 22, 2018 inquiring as to whether Whiteleather received the latest draft of the settlement agreement.
*856HAS INSURANCE, AND THE PARENTS WILL NOT HOLD HARMLESS THE DISTRICT FROM SOMEONE ELSE'S ERRORS."
On March 27, 2018, Read emailed Whiteleather to respond to her proposed changes to the draft settlement agreement.
Whiteleather's next correspondence regarding the settlement agreement came on April 3, 2018. Dkt. 43-5 Ex. I. Whiteleather requested four small textual changes to the settlement agreement, as well as an increase in the District's payment of attorneys' fees to $5,000.
On April 10, 2018, Whiteleather again emailed Read to dispute terms included in the proposed settlement agreement. Dkt. 43-5 Ex. K. Whiteleather stated that Read's draft from April 5 "fails to address the original changes we had requested for this matter nor the most vital of our objections to your client's offer."
*857Read responded to Whiteleather's proposal on April 18, 2018.
In the midst of the parties' negotiation efforts, on April 2, 2018 Plaintiff sought a continuance of the OAH proceedings in light of scheduling conflicts for Whiteleather. See AR 180-82 (request for a continuance of the due process hearing set for April 3-5, 2018); AR 191-92 (the ALJ granting Plaintiff's request for a continuance and setting the hearing to begin on April 10); AR 194-95 (the ALJ granting the parties' joint request for a continuance and setting the hearing to begin on May 2).
E. The District Agrees to Fund the IEE and Withdraw Its Complaint
On March 21, 2018, while the parties were attempting to negotiate a settlement of their respective due process complaints, Dr. Stephey evaluated Plaintiff for visual processing, thus completing the IEE. See AR 268 ("Vision Assessment Invoice" from Dr. Stephey identifying the date of evaluation as March 21, 2018). Dr. Stephey evidently charged only $800 for the assessment of Plaintiff, including the preparation of a written report and review of Plaintiff's records.
It is unclear from the record when Plaintiff, Plaintiff's parents, and/or Whiteleather first received the invoice from Dr. Stephey for the visual processing IEE. However, neither Whiteleather nor Plaintiff's parents brought Dr. Stephey's invoice to the District's attention as part of the parties' ongoing efforts to communicate a settlement of their respective due process complaints. Instead, what the record does reveal is that Plaintiff included Dr. Stephey's invoice in Plaintiff's evidence binder provided to the District on March 28, 2018 in advance of the OAH hearing, which the ALJ found to be the first time the District became aware that Dr. Stephey's IEE fell within the Policy's cost cap and satisfied the District's cost critera. See AR 358-59 (the ALJ finding persuasive the District's representation that "the first time [Plaintiff] communicated that the one thousand dollars was acceptable was when District received [Dr.] Stephey's invoice when the parties exchanged exhibit binders for the hearing, on March 28, 2018").
On April 23, 2018, Read emailed Whiteleather to discuss ongoing disputes regarding the settlement agreement. See Dkt. 43-5 Ex. M. In the email, Read stated that "[i]n reviewing your evidence binder ... it appears that Dr. Stephey has already completed the [vision therapy] evaluation for a cost of $800, which is below the District's cost cap. We did not have that information from Dr. Stephey previously."
Whiteleather responded to Read's email the same day.
On April 24, 2018, Read sent Whiteleather an email regarding the new information about Dr. Stephey completing the IEE for below the Policy's cost cap. AR 346. Read stated that, prior to receipt of Dr. Stephey's invoice, "the District understood that [Plaintiff's] parents were requesting that the District directly fund an independent vision therapy evaluation by Dr. Stephey in the amount of $1,400."
On April 25, 2018, Whiteleather responded to Read's email by stating that Plaintiff's parents would accept $1,000 for Dr. Stephey's IEE as the cost cap under the Policy, "no less." Dkt. 28-10. Whiteleather asserted that the remaining $200 available under the Policy "will be applied to Dr. Stephey's appearance at the necessary IEP."
Whiteleather sent another response to Read's email on April 26, 2018, stating that "any offer to settle [the outstanding due process complaints] includes reasonable attorney's fees." AR 350. Whiteleather indicated that she would be willing to accept $7,750 in attorneys' fees "as full satisfaction of my now over $10,000 fee bill."
*859
Over the following days, subsequent correspondence confirmed that Plaintiff's parents were seeking reimbursement of the $800 cost of Dr. Stephey's evaluation, rather than payment directly to Dr. Stephey. See AR 353. Whiteleather also noted that the remaining $200 under the District's cost cap was to be billed to the District following Dr. Stephey's attendance at an IEP meeting to discuss the results of Dr. Stephey's IEE. AR 352.
On April 30, 2018, Plaintiff filed another motion to continue the due process hearing from May 2, 2018 due to a scheduling conflict for Whiteleather. AR 204-06. The District opposed Plaintiff's request for a continuance as untimely, AR 213, and the ALJ ultimately denied Plaintiff's motion, AR 216-17. The hearing proceeded as scheduled on May 2, 2018. See AR 395 (the first page of the transcript for the May 2 hearing).
At the hearing on May 2, the ALJ did not allow Whiteleather to introduce into evidence certain settlement communications, including drafts of the settlement agreement, between Whiteleather and counsel for the District. See AR 577-78. Thus, the administrative record did not contain most of the settlement correspondence between Whiteleather and the District's counsel over the period of time between February 2018 and April 2018.
F. The ALJ's Decision
Following the May 2 hearing, on June 14, 2018, ALJ Sabrina Kong issued a decision denying Plaintiff's due process complaint. See AR 355-67.
First, the ALJ made several evidentiary rulings, finding that Plaintiff's characterization of the evidence of communications between Plaintiff and the District during the pendency of the administrative proceedings was less persuasive than the District's characterization of the same evidence. The ALJ determined that Attwood's assertion that Plaintiff and his parents communicated to the District in mid-February 2018 that Plaintiff was willing to accept only $1,000 for the IEE from Dr. Stephey was "not persuasive," because Plaintiff did not provide any documents to support that contention. AR 358-59. The ALJ also found Attwood's argument that the District never offered to pay $1,000 for Dr. Stephey's evaluation without conditions, such as waivers of Plaintiff's claims or other rights, to be unpersuasive in light of the emails from late April 2018 indicating that the District was withdrawing its due process complaint and would fund Dr. Stephey's evaluation at the $1,000 cost cap. AR 359.
Second, the ALJ concluded that the District did not unnecessarily delay in filing its due process complaint between August 21, 2017 and December 5, 2017. AR 363-64. The ALJ found that the District timely agreed to fund an IEE within 10 days of Plaintiff's initial request, and when Plaintiff selected an evaluator who did not meet the District's cost criteria, the District "actively communicated with Parent and Mr. Attwood about the [ ] cost criteria and provided Mr. Attwood and Parent the opportunity to demonstrate any unique circumstances justifying an independent evaluation that did not fall within the [ ] cost criteria." AR 363. Because Plaintiff never *860offered a justification warranting the District to pay for an IEE in excess of the cost cap and instead suggested "unequivocally" that the District file for due process in November 2017, the ALJ held that the District's filing of a due process complaint on December 5, 2017 was reasonable in light of the District being closed over the Thanksgiving holiday. AR 364.
Third, as to the period between December 6, 2017 and April 25, 2018, the ALJ construed the parties' frequent communications from February 2018 (when Plaintiff retained an attorney) and late April 2018 as "negotiat[ing] a settlement of the consolidated matter"-i.e. , both the District's due process complaint and Plaintiff's due process complaints against the District.
The ALJ also found that Plaintiff "conflated District's duty to file and maintain its case to decision with resolving [Plaintiff's] complaint in the context of a settlement agreement which included paying [Plaintiff's] attorneys' fees without releases."
Accordingly, based on the administrative record, the ALJ concluded that Plaintiff did not meet his burden to prove by a preponderance of the evidence that the District unnecessarily delayed in filing its due process complaint or was unreasonable in its efforts to continue negotiating with Plaintiff's team up until the time that the parties agreed on the amount to be paid for the IEE performed by Dr. Stephey. AR 365-66. The ALJ found the District to be the prevailing party as to the sole issue remaining in Plaintiff's due process complaint. AR 366.
G. Procedural History
Plaintiff filed the Complaint in this action on July 18, 2018, seeking a review and *861reversal of the ALJ's decision denying Plaintiff's due process complaint, including a court order requiring that the District pay Plaintiff for all reasonable attorneys' fees incurred in connection with the OAH proceedings and this action. See Dkt. 1.
On February 22, 2019, the Court granted Plaintiff's motion to supplement the administrative record with some correspondence between Whiteleather and counsel for the District regarding settlement negotiations, including draft settlement agreements. See Dkt. 41. The Court held that the ALJ improperly found those communications to be inadmissible, and the Court determined that those communications were relevant to the issue, addressed by the ALJ in the decision, of whether the District unreasonably delayed in resolving Plaintiff's due process complaint by refusing to settle for the District's cost cap until April 2018.
On March 19, 2019, the Court granted the District's ex parte application to supplement the administrative record with additional settlement communications between Whiteleather and the District's counsel. See Dkt. 44.
After the parties submitted trial briefs in this action, the Court held a pretrial conference on March 25, 2019 in advance of a bench trial scheduled for April 2, 2019. See Dkt. 49. Following the pretrial conference, the Court continued the bench trial date to April 16, 2019 and requested supplemental briefing from the parties, to give Plaintiff a chance to address the District's supplemental evidence entered into the record. See Dkt. 50. The Court also explained the lack of clarity as to what legal standards should apply to the thrust of Plaintiff's argument in this case, that the District unnecessarily delayed in resolving its due process complaint by failing to agree to the cost cap of $1,000 for Dr. Stephey's IEE after Plaintiff first indicated his willingness to agree to the cost cap in February 2018.
After the parties submitted their supplemental briefs, the Court vacated the bench trial and took the case under submission without holding a hearing. See Dkt. 55.
III. Conclusions of Law
A. Standards of Review
The IDEA provides that any party aggrieved by the findings of an ALJ in response to a due process hearing may bring a civil action in federal court to challenge the administrative decision.
Because the district court may hear evidence outside the administrative record, "judicial review in IDEA cases differs substantially from judicial review of other agency actions, in which courts generally are ... held to a highly deferential standard of review."
*862Ojai Unified Sch. Dist. v. Jackson ,
Nevertheless, the court still must give "due weight" to state administrative proceedings and cannot substitute its own considerations of education policy in place of those held by the school authorities whose actions are under review. Ojai ,
Here, the ALJ held an administrative hearing and heard live testimony from several witnesses, ultimately issuing a relatively short, but concise, 12-page decision addressing Plaintiff's lone surviving due process claim against the District. The ALJ's analysis in the decision appears to satisfy the threshold for "thorough and careful" administrative findings, and the Court will review the ALJ's decision with some deference. See, e.g. , A.A. v. Goleta Union Sch. Dist. , No. CV 15-06009 DDP (MRWx),
On the other hand, during the pendency of this action, the Court granted each party's respective motion to supplement the administrative record, because the ALJ improperly did not admit into *863evidence certain communications between Whiteleather and counsel for the District between February and April, 2018. See Dkts. 41, 44. Therefore, the Court will not defer to any findings by the ALJ that are directly contradicted by the supplemental evidence offered by the parties.
B. Analysis
Federal regulations promulgated under the IDEA provide that the parents of a school-aged child enrolled in public school has the right to obtain an IEE at public expense if the parents disagree with the public agency's own evaluation of the student's educational needs.
must, without unnecessary delay, either-
(i) File a due process complaint to request a hearing to show that its evaluation is appropriate; or
(ii) Ensure that an independent educational evaluation is provided at public expense, unless the agency demonstrates in a hearing ... that the evaluation obtained by the parent did not meet agency criteria.
The term "unnecessary delay" is not defined in the regulations or elsewhere. Nevertheless, the Office of Special Education Programs ("OSEP"), the entity within the Department of Education responsible for promulgating regulations under the IDEA, addressed the meaning of the phrase in an advisory comment letter. See Letter to Anonymous , 56 IDELR 175 (OSEP 2010).6 In the letter, OSEP explained that the term "unnecessary delay" allows for "a reasonably flexible, though normally brief, period of time that could accommodate good faith discussions and negotiations between the parties over the need for, and arrangements for, an IEE."
A finding that a public agency failed to "fund or file" without unnecessary delay does not automatically necessitate a ruling in favor of the parents on their due process complaint. Administrative hearing officers are directed under the IDEA to make their decisions "on substantive grounds based on a determination of whether the child received a free appropriate public education," commonly referred to as a "FAPE."
In the underlying state administrative proceedings, the ALJ analyzed two distinct time periods regarding Plaintiff's due process complaint alleging that the District unnecessarily delayed in funding Dr. Stephey's IEE or filing its due process complaint. First, the ALJ assessed the period between August 21, 2017 and December 5, 2017, leading up to the date the District filed its due process complaint. See AR 363-64. Second, the ALJ analyzed whether the District timely pursued its due process complaint between the date of filing the complaint and April 25, 2018, the date the District withdrew its complaint and dismissed it without prejudice. See AR 364-65. The Court will proceed to analyze each of these time periods to determine whether the ALJ's findings should be upheld in light of the applicable standards of review set forth above.
1. Prior to the Filing of the District's Due Process Complaint on December 5, 2017
The ALJ held that the District did not unnecessarily delay between the first time that Plaintiff's parents requested an IEE
*865for visual processing in August 2017 and the date that the District filed its due process complaint on December 5, 2017. AR 363. The ALJ determined that the District "timely agreed to fund an independent visual processing evaluation, within 10 days of [Plaintiff's] request" on August 21, 2017, and that the District "actively communicated" with Plaintiff's parents and Attwood once the District discovered that Dr. Stephey's IEE would not satisfy the Policy's cost cap.
The ALJ concluded that the "first indication of impasse" between the parties regarding Dr. Stephey's IEE was on November 15, 2017, when Attwood suggested that the District file for due process. AR 364; see also AR 277. Because the District was on Thanksgiving holiday between November 18-26, the ALJ held that the District's decision to file a due process complaint on December 5-20 days after Attwood's first suggestion to file for due process-was reasonable, particularly because the District continued to communicate with Plaintiff's parents during this time "in a last-ditch effort to resolve the matter without having to file" a due process complaint. AR 364. In reaching this conclusion, the ALJ distinguished Pajaro Valley Unified Sch. Dist. v. J.S. , No. C 06-0380 PVT,
i. The District's Withholding of Pertinent Information Can Constitute "Unnecessary Delay" Under § 300.502(b)(2)
Plaintiff takes issue with the District's failure to identify the total cost cap for a visual processing IEE under the Policy, or what amount Dr. Stephey indicated to the District that he would charge for Plaintiff's visual processing IEE, upon requests by Plaintiff's parents beginning in October 2017. See AR 258-59; Dkt. 42 at 5-6 (Plaintiff's reply trial brief arguing that "the parents and the advocate could not discuss or negotiate the costs the District believed Dr. Stephey charged because the parents didn't even know what that was or how much Dr. Stephey's purported charge exceeded the District's cost criterion"). The ALJ did not address this specific argument in its decision, and Plaintiff has not identified any authority for the proposition that the District was required to identify any particular information for Plaintiff's parents upon request. Nevertheless, Plaintiff's argument holds merit.
Because the inquiry into whether unnecessary delay existed is a fact-intensive inquiry, see C.W. v. Capistrano ,
In this case, the District had information available to it that would have assisted Attwood and Plaintiff's parents in assessing how to respond to the District's October 13, 2017 letter asserting that Dr. Stephey did not meet the "cost maximum" under the Policy. See AR 256. That letter was purportedly issued to satisfy the District's obligations to send Plaintiff's parents a "prior written notice" letter pursuant to
That missing information is obviously vital to the discussions between the District and Plaintiff's parents that would inevitably follow after the District's October 13 letter. To illustrate, had Dr. Stephey charged one dollar over the Policy's cost maximum for a visual processing IEE, Plaintiff's burden to justify the use of Dr. Stephey would have been substantially diminished, and Plaintiff's parents almost assuredly would have offered to pay the excess immediately, without the need for the District to resort to a due process hearing. And the events that transpired following the District's filing for due process further illuminates the repercussions of depriving Plaintiff's parents of this information in a timely manner. As the ALJ found, Attwood did not know that Dr. Stephey's purported fee from the rate sheet sent to the District would be around $2,400 until after the District identified that amount in its due process complaint. See AR 358. Attwood then promptly "convinced [Dr.] Stephey to assess [Plaintiff] for one thousand four hundred dollars,"
*867The District argues that "[t]here is no legal authority that requires a district to provide a sufficient break-down of a particular independent assessor's costs in order to facilitate" negotiation between the district and parents requesting an IEE. Dkt. 39 at 16. The District is incorrect; the IDEA "obligates public agencies rather than parents or students to ensure compliance with the procedural safeguards." William S. Hart Union High Sch. Dist. v. Romero , No. CV-13-3382-MWF (PLAx),
Here, when Attwood emailed the District six days after receiving the October 13 letter to request information about the Policy's cost cap for visual processing IEEs and the rates Dr. Stephey charged, the District did not answer Attwood's questions and instead referred Attwood to Lord, the SELPA's program manager, for inquiries about Dr. Stephey. AR 258.8 It is *868true that nothing prevented Plaintiff's parents from reaching out to Dr. Stephey directly, or to Lord with the SELPA as suggested by the District, to obtain the missing information about how Dr. Stephey's IEE did not satisfy the District's cost criteria. But to the extent that Plaintiff's parents did not accept the District's invitation to investigate the cost of Dr. Stephey's IEE personally, "[t]he District's procedural responsibilities [under the IDEA] are not relieved by the students' or parents' failure to consent or cooperate." William S. Hart ,
ii. The District Committed a Procedural Violation by Failing to Explain How Dr. Stephey Exceeded the Cost Cap Upon Request by Plaintiff's Parents
Unsurprisingly, and contrary to the ALJ's decision, the administrative record conclusively establishes that there was such an unnecessary delay. Between October 19, 2017 and November 15, 2017, the District continued to request written justification of unique circumstances from Plaintiff's parents. See AR 280-81 (November 2 letter); AR 262 (November 7 letter); AR 265 (December 1 email, which also acknowledged that the District sent another letter on November 17); AR 263-64 (December 4 letter). During this timeframe, Plaintiff's parents continued to request the District to provide more information about how Dr. Stephey's IEE would not satisfy the District's cost maximum, but the District never did. See AR 259 (follow-up email from Attwood on October 19); AR 277-78 (November 15 emails); AR 265 (November 30 email). The fact that Plaintiff's parents never responded to the District's letters from November 2 and November 7, and never offered the written justification that the District sought, is immaterial because the parents *869could not respond effectively to the District's request for justification without the missing information they had requested.
The District also argues that, because Dr. Stephey did not identify a specific charge for a visual processing IEE in the rate sheet sent to the District and could not identify a single charge until after completing the evaluation, "it would have been impossible for [the District] to do so" in response to Attwood's email on October 19, 2017. See Dkt. 39 at 17. Yet the District had no problem representing unequivocally to Plaintiff's parents that Dr. Stephey "does not meet the cost maximum" for visual processing IEEs under the Policy, after merely looking at Dr. Stephey's rate sheet. See AR 256. It is wholly inconsistent for the District to argue before this Court that it could not estimate what Dr. Stephey's charges would be based on the rate sheet he provided, or even send Plaintiff's parents the rate sheet itself, and at the same time represent to Plaintiff's parents in October 2017 that Dr. Stephey did not meet the cost cap without qualification. The absurdity of the District's argument is further revealed by the fact that Dr. Stephey ultimately billed only $800 for the IEE. See AR 268. The District simply has not articulated a legitimate reason why it refused to cooperate with Plaintiff's parents' simple request for more information, which the District had readily available at its disposal, about how the District determined that Dr. Stephey did not meet the District's IEE criteria, even if an answer could not be provided to the precise dollar amount of Dr. Stephey's yet-to-be-performed evaluation.
Neither has the District provided for justification why it could not feasibly reach out to Dr. Stephey directly to obtain a more precise estimate of his fees for Plaintiff's IEE; the SELPA evidently did the same thing for Dr. Morris, another evaluator chosen by Plaintiff's parents, which resulted in Dr. Morris "adjust[ing] her rate sheet so that Royal Lord could approve her for the neuropsych assessment for [Plaintiff]." AR 267. Plaintiff's parents even requested that the District reach out to Dr. Stephey in this regard,
In fact, even earlier in the parties' correspondence about a visual processing IEE for Plaintiff, the District showed that it was unwilling to be proactive to satisfy its duties under the IDEA. After Plaintiff's parents selected Dr. Stephey as their preferred visual processing evaluator in a September 12 email, see AR 252, the District did not contact Dr. Stephey directly despite the fact that Plaintiff's parents included contact information for Dr. Stephey in their email. Rather, the District waited until September 26-two weeks after receiving the email-and sent a letter to Plaintiff's parents asking for Dr. Stephey's curriculum vitae and rate sheet. See AR 255. Dr. Stephey himself noted to the District on October 3, 2017 that, in Dr. Stephey's experience, it was unusual for parents to be asked to collect information from a selected independent evaluator rather than the school district reaching out to the evaluator directly. See AR 307 ("I work collaboratively with about 30 districts and have never had a parent have to track down this information."). The District's decision to send Plaintiff's parents a letter on September 26 asking for Dr. Stephey's rate sheet and curriculum vitae could also *870be seen as an unnecessary dilatory tactic in response to the parents' selection of Dr. Stephey as their preferred evaluator, given that the District was responsible to ensure that Dr. Stephey's IEE would be funded-or alternatively, that the District would file a due process complaint challenging Plaintiff's parents' selection of Dr. Stephey-without unnecessary delay. The District has provided no explanation for why it chose to task Plaintiff's parents with the responsibility to communicate with Dr. Stephey about his qualifications and fees in response to the selection of Dr. Stephey, and no legitimate explanation emerges from the record before the Court. Therefore, because the District failed to coordinate directly with Dr. Stephey in response to Plaintiff's parents selecting Dr. Stephey as their preferred visual processing evaluator, the District's unnecessary delay actually began on September 12, 2017.
In sum, nothing in the record suggests that it was somehow "necessary" for the District to withhold information about how Dr. Stephey's fees exceeded the District's cost cap, or that the resulting delay between the date Plaintiff's parents first requested that information and the date the District ultimately filed for due process was a "necessary" delay that encompassed good faith negotiations between the parties to resolve the IEE dispute amicably. Therefore, Plaintiff has met his burden to show by a preponderance of the evidence that the District unnecessarily delayed in filing for due process over the 84-day time period between September 12, 2017 and December 5, 2017. Such a timeframe is a relatively short but consistent with other case law finding an unnecessary delay. See, e.g. , Pajaro Valley ,
iii. The Record Is Insufficient as to Whether the District's Procedural Violation Impaired the Substantive Rights of Plaintiff or His Parents
The fact that the District committed a procedural violation of the IDEA's implementing regulations is not the end of the analysis; the Court still "must determine whether that [procedural] violation affected the substantive rights of the parent or child." L.M. v. Capistrano ,
Nevertheless, the administrative record included a letter from the District to Plaintiff's parents on December 4, 2017, in which the District acknowledged that Plaintiff's parents "were not in attendance at the Individualized Educational Program review on December 1, 2017 for [Plaintiff]." AR 263. In the letter, the District noted that Plaintiff's parents "indicated that you will not attend an IEP meeting until the IEE's are completed," including *871the IEE for Dr. Stephey that had yet to be performed at that time.
"Procedural violations that interfere with parental participation in the IEP formulation process undermine the very essence of the IDEA." Amanda J. ,
However, attributing the absence of Plaintiff's parents from the IEP meeting to the District's unnecessary delay in filing for due process is less clear. It is apparent that Plaintiff's parents voluntarily withheld themselves from participating in the IEP meeting, a decision which might have been justified in light of the District's refusal to provide the information about Dr. Stephey's fees to Plaintiff's parents in response to their request. But the record does not suggest that, had the District filed for due process without unnecessary delay prior to the December 1 IEP, Plaintiff's parents would have attended the IEP meeting. Plaintiff's mother clearly indicated her position that "a legally compliant IEP cannot be completed without proper assessment," AR 278, suggesting that Plaintiff's parents were unwilling to attend an IEP meeting until Dr. Stephey's visual processing IEE was performed in full. Thus, the District's unnecessary delay in filing for due process, and the District's unreasonable failure to provide Plaintiff with the requested information about Dr. Stephey's fees, does not necessitate a finding that the District caused unnecessary delay in the completion of the actual visual processing assessment to be performed by Dr. Stephey.
Remand to the state administrative body is an appropriate disposition where the court "does not believe the record is sufficient to permit it to make the highly nuanced judgments necessary to resolve the claim." Jessica E. v. Compton Unified Sch. Dist. , No. CV16-04356-BRO (MRWx),
Therefore, in light of the Court's reversal of the ALJ's decision and the Court's finding that the District unnecessarily delayed in filing for due process on December 5, 2017, the Court REMANDS to the ALJ for the limited determination of whether the District's unnecessary delay affected Plaintiff's or his parents' substantive rights under the IDEA, and if so, what Plaintiff's remedy should be in light *872of the fact that the District apparently already reimbursed Plaintiff's parents for Dr. Stephey's IEE.9 See M. S. v. L.A. Unified Sch. Dist. , No. 2:15-cv-05819-CAS-MRW,
2. Settlement Negotiations between December 2017 to April 25, 2018
The remainder of Plaintiff's legal position in this action is that the District unnecessarily delayed in resolving its own due process complaint by failing to agree to pay the cost cap under the Policy for Dr. Stephey's IEE once the District was aware that Plaintiff's parents were willing to pay all amounts in excess of the cost cap.
The ALJ addressed Plaintiff's argument in its decision in some capacity, even though that issue was not included in the pending issues raised in Plaintiff's due process complaint.10 The ALJ determined that the parties were embroiled in negotiations between February 2018 and April 2018 to settle the consolidated matter before OAH, including both parties' due process complaints against the other. AR 364. The ALJ rejected Plaintiff's argument that the District should have paid its $1,000 cost maximum for Dr. Stephey's IEE in mid-February 2018 when Plaintiff's parents communicated their willingness to pay all costs in excess of the cost cap, finding *873that Plaintiff "never provided any documents, emails or otherwise, supporting that he accepted the SELPA's cost criteria before late April 2018."
The ALJ's factual conclusion is clearly in error in light of the supplemental evidence submitted by the parties, which the ALJ apparently did not allow to be admitted into the administrative record. Whiteleather sent the District a letter on February 12, 2018 stating unequivocally that Plaintiff's parents "offer to pay the amount of Dr. Stephey's visual processing IEE that is over and above $1,000." Dkt. 28-5 at 1. Although Whiteleather also represented that she desired attorneys' fees in addition to the parents' offer, the February 12 letter directly rebuts the ALJ's conclusion that there was no evidence confirming that such an offer was made in mid-February. Thus, the ALJ's factual conclusion in this regard must be reversed.
That being said, the ALJ correctly determined that Plaintiff did not provide any evidence that any delay between February 2018 and April 2018 in resolving the District's due process complaint impaired the substantive rights of either Plaintiff or his parents. See AR 365. In the ALJ's decision, the ALJ determined that Plaintiff "never presented evidence at hearing" that any delay between mid-February and late April 2018 resulted in the denial of a FAPE for Plaintiff or significant impeded Plaintiff's parents in their attempt to participate in the decisionmaking process.
Plaintiff has presented no evidence or argument whatsoever to address this finding of the ALJ, so the Court has no basis to reverse the ALJ's decision in this regard. To the extent that Plaintiff purports to rely on the fact that Plaintiff's parents were excluded from the IEP meeting held by the District on December 1, 2017, see AR 263, that meeting occurred prior to the District's filing for due process on December 5. Therefore, even if the District unnecessarily delayed in resolving its due process complaint between February 2018 and April 2018 in light of a clear offer from Plaintiff's parents to pay all costs of Dr. Stephey's IEE above the District's cost cap, Plaintiff has not identified that this delay caused a denial of a FAPE or impeded with Plaintiff's parents' ability to participate in the IEP process.
Because any potential substantive repercussions of the District's unnecessary delay occurred prior to the District's filing of the due process complaint, Plaintiff did not meet his burden of proof to show entitlement to relief in his due process complaint for the period between February 12, 2018 and April 25, 2018, even if the District unnecessarily delayed in resolving its own complaint over that period in violation of
IV. Conclusion
Based on the Court's findings of fact and conclusions of law set forth above, the Court REVERSES the ALJ's conclusion that the District did not unnecessarily delay in filing its due process complaint on December 5, 2017. Based on the evidence in the record, the District unreasonably refused to provide Plaintiff's parents with necessary information about how Dr. Stephey's IEE exceeded the District's cost criteria after the parents requested such information. The Court REMANDS to the ALJ for the limited determination, consistent with the findings in this Order, of whether the District's unnecessary delay affected Plaintiff's or his parents' substantive rights under the IDEA, and if so, what is the appropriate remedy for Plaintiff's due process claim.
However, the Court AFFIRMS the ALJ's conclusion that, even if the District *875unnecessarily delayed in prosecuting its due process complaint between February 2018 and April 2018, Plaintiff did not meet his burden of proof to show that such an unnecessary delay affected Plaintiff's or his parents' substantive rights. Therefore, the Court need not reach the question primarily addressed by the parties as to whether the District actually unnecessarily delayed in resolving its due process complaint during this secondary time period.
This action is stayed pending the ALJ's determinations on the remanded issues. See Shapiro v. Paradise Valley Unified Sch. Dist. No. 69 ,
Plaintiff shall be deemed as the prevailing party in this appeal of the ALJ's decision pursuant to
IT IS SO ORDERED.
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Cite This Page — Counsel Stack
389 F. Supp. 3d 845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lc-v-alta-loma-sch-dist-cacd-2019.