Justia Government & Administrative Law Opinion Summaries

Navient sells student loans to borrowers and services and collects on student loans. Its “subprime loans,” which had high variable interest rates and origination fees, benefited schools by maximizing enrollment. Student borrowers were not informed that the loans had a high likelihood of default. In 2000-2007, 68-87% of Navient’s high-risk loans defaulted. Navient allegedly steered borrowers into consecutive forbearances after they had demonstrated a long-term inability to repay their loans. Navient would sometimes place borrowers in forbearance even though they would have qualified for $0 per month payments in an Income-Driven Repayment (IDR) plan. In 2011-2015, more than 60% of Navient’s borrowers who enrolled in IDR plans failed timely to renew their enrollment, allegedly because of deficient notifications. Navient also allegedly made misrepresentations concerning releases for cosigners and misapplied payments, resulting in borrowers and cosigners being improperly charged late fees and increased interest.Pennsylvania sued Navient under the Consumer Financial Protection Act, 12 U.S.C. 5552, and the state’s Unfair Trade Practices and Consumer Protection Law. Nine months earlier, the Consumer Financial Protection Bureau and the states of Illinois and Washington had filed similar lawsuits. The Third Circuit affirmed the denial of a motion to dismiss. The federal Act permits concurrent action. The Higher Education Act, 20 U.S.C. 1001, preempts state law claims based on failures to disclose required information but does not preempt claims based on affirmative misrepresentations. View "Commonwealth of Pennsylvania v. Navient Corp" on Justia Law

Decker developed the patented inventions while employed at the University of Texas and assigned the patents to UT. Gensetix obtained an exclusive license in the patents. The license agreement provides that, Gensetix must enforce the patents. The parties agreed to cooperate in any infringement suit and that nothing in the agreement would waive UT's sovereign immunity. Gensetix sued Baylor, alleging infringement and requested that UT join as a co-plaintiff. UT declined. Gensetix named UT as an involuntary plaintiff under FRCP 19(a). The district court dismissed, finding that UT is a sovereign state entity, so that the Eleventh Amendment barred joinder of UT, and that the suit could not proceed without UT.The Federal Circuit affirmed in part. UT did not voluntarily invoke federal jurisdiction; the Eleventh Amendment prevents “the indignity of subjecting a State to the coercive process of judicial tribunals” against its will. It is irrelevant that the license agreement requires the initiation of an infringement suit by Gensetix or cooperation by UT. The court erred in dismissing the suit without adequate analysis of Rule 19(b)'s factors: the extent to which a judgment might prejudice the missing required party or the existing parties; the extent to which any prejudice could be lessened; whether a judgment rendered in the required party’s absence would be adequate; and whether the plaintiff would have an adequate remedy if the action were dismissed. View "Gensetix, Inc. v. Baylor College of Medicine" on Justia Law

Plaintiffs, a number of independent school districts, school boards, parents, students, and citizens, challenged the implementation of Act 46, as amended by Act 49, regarding the involuntary merger of school districts. The Vermont Legislature enacted those laws in 2015 and 2017, respectively, to improve educational outcomes and equity by designing more efficient school governance structures in response to long-term declining student enrollment and balkanized educational governance and delivery systems. In separate decisions, the civil division dismissed several counts of plaintiffs’ amended complaint and then later granted defendants’ motion for summary judgment on the remaining counts. In two consolidated appeals, plaintiffs argued that: (1) the State Board of Education and the Agency of Education failed to carry out the plain-language mandate of Act 46; and (2) the Board’s implementation of the law, as manifested in its final order, violated other statutes in Title 16 and several provisions of the Vermont Constitution. The Vermont Supreme Court concluded that the Agency’s and Board’s implementation of the law was consistent with the challenged Acts and other statutes in Title 16, did not result from an unlawful delegation of legislative authority, and did not violate any other constitutional provisions. Accordingly, the civil division’s decisions were affirmed. View "Athens School District et al. v. Vermont State Board of Education et al." on Justia Law

Plaintiff Huntington School District appealed the civil division’s order dismissing its complaint on motion of the two state defendants and granting defendant Mount Mansfield Modified Unified Union School District's motion for judgment on the pleadings. This case was one of several lawsuits challenging the implementation of Act 46 (as amended by Act 49) regarding the involuntary merger of school districts. Plaintiff raised four issues on appeal; three of those were resolved by the Vermont Supreme Court in a contemporaneously issued opinion concerning another challenge to the implementation of Acts 46 and 49, Athens Sch. Dist. et al. v. State Board of Education, 2020 VT 52. In this opinion, the Supreme Court set forth only the law and procedural history relevant to plaintiff’s single claim of error not decided in Athens School District: that the State Board of Education exceeded its delegated authority under Act 46 “by designating Huntington as a member of Mount Mansfield and purporting to subdelegate to Mount Mansfield the power to merge Huntington.” In relevant part, plaintiff alleged in its complaint that because Mount Mansfield was a union school district receiving incentives under Acts 153 and 156, the Board could not order Huntington to merge or otherwise alter its governance structure pursuant to Act 46, section 10(b). Plaintiff also alleged that the Board acted beyond its authority by calling for Mount Mansfield to vote on merger pursuant to 16 V.S.A. 721, while at the same time not allowing plaintiff to veto the merger by its own vote under the same statute. The state defendants moved to dismiss plaintiff’s complaint for failure to state a viable claim for relief, and Mount Mansfield moved for judgment on the pleadings. The Supreme Court found "unavailing" plaintiff's argument that Act 46 as amended did not authorize the Board to order Huntington to merge with Mount Mansfield, conditioned upon the consent of coters in Mount Mansfield's member districts. Nor did the Court found any merit to plaintiff's argument that the Board's authority was unlawfully subdelegated. As we stated with respect to the plaintiffs in Athens School District, plaintiff in this case did not demonstrate the Board failed to apply any Title 16 provisions in circumstances in which they were applicable. View "Huntington School District v. Vermont State Board of Education et al." on Justia Law

Plaintiff School districts located in Midwest City/Del City, Enid, Ponca City, and Oklahoma City filed an action alleging they received insufficient State Aid payments for the years 1992-2014. The named defendants were: the Superintendent of Oklahoma State Department of Education (OSDE); the Oklahoma Tax Commission; and (3) the Oklahoma State Treasurer. Plaintiffs sought writs of mandamus to compel defendants to demand and recoup excessive State Aid payments made to other school districts, and then pay the correct apportionments to plaintiffs. Plaintiffs sought summary judgment, and intervenors, school districts in Tulsa County, sought summary judgment against plaintiffs. The district court granted intervenors' motion for summary judgment and concluded the defendants did not have a duty to seek repayment of excessive State Aid payments made to other schools until an audit was performed by auditors approved by the State Auditor and Inspector. Plaintiffs appealed and after review, the Oklahoma Supreme Court held the audit used by the State Board of Education when demanding repayment must be performed by auditors approved by the State Auditor and Inspector. A school district possesses a legal right to a proper apportionment of State Aid regardless of excessive payments made to other districts. A school district lacked a cognizable legal interest and standing in a claim to compel the State Board of Education to fund a lapsed appropriation. Plaintiffs' filings raised the issue of their standing to judicially compel legislative appropriations; standing would have to be adjudicated on remand. View "Independent School District # 52 v. Hofmeister" on Justia Law

Petitioner Sherri Ybarra, the Idaho Superintendent of Public Instruction, petitioned the Idaho Supreme Court for a declaratory judgment, writ of mandamus, or writ of prohibition to remedy various alleged constitutional violations by the Idaho Legislature and the Idaho State Board of Education related to the funding and supervision of eighteen employees currently working in the Idaho Department of Education. During the 2020 legislative session, the Idaho Legislature passed two appropriation bills - Senate Bills 1409 and 1410 - which transferred supervision of eighteen full-time job positions within the Department’s Technology Group to the Board along with approximately $2.7 million in funding for those positions. The Superintendent argues that “by splitting eighteen employees away from three other workers and eliminating all funding for the office space, rent, and the maintenance and upgrading of the Department’s computers, this line item appropriation decentralizes and damages operations.” She also claimed these bills were the Legislature’s attempt to “strip the Superintendent of her authority through the budget process,” in retaliation for her failure to support a 2019 revised school funding formula. To effectuate such relief, the Superintendent invoked the Supreme Court's original jurisdiction, seeking a declaratory judgment that the Appropriation Bills were unconstitutional. The Superintendent sought a writ of mandamus and/or prohibition that would allow SB 1409's funding appropriation to the Board remain intact, but would restore the Superintendent's full management authority over the Technology Group. The Supreme Court found the Appropriations Bills constitutional, thereby declining to address requests for writs of mandamus and/or prohibition. View "Ybarra v. Legislature of the State of Idaho" on Justia Law

At issue in this case was the correct interpretation of Ariz. Rev. Stat. 23-750(E)(5), which provides that income earned by any individual who performed certain services while employed by an entity that provides such services to or on behalf of an "educational institution" cannot be used to qualify for unemployment during breaks between academic terms if that person is guaranteed reemployment.Plaintiffs were employees of Chicanos For La Cause (CPLC), a nonprofit corporation that administered federally funded Early Head Start and Migrant Seasonal Head Start programs and provided services to help school districts comply with their obligations under the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. 1400 et seq. When the summer break began, Plaintiffs applied for unemployment insurance benefits from Arizona Department of Economic Security (ADES), which granted benefits. The ADES Appeals Board reversed. The Supreme Court remanded the case to ADES to award unemployment benefits to two plaintiffs and for further proceedings to resolve the claims of the remaining plaintiffs, holding that section 23-750(E)(5) applies to plaintiffs only if they performed services for CPLC that CPLC supplied to the school districts. View "Rosas v. Arizona Department of Economic Security" on Justia Law

The Pennsylvania Supreme Court granted discretionary review to consider whether the Commonwealth Court erred in determining a school bus surveillance video sought in a request for public records pursuant to the Right-to-Know Law (RTKL) was not exempt from disclosure under the Family Educational Rights and Privacy Act (FERPA), 20 U.S.C. 1232g. Rudy Miller, on behalf of The Express Times (collectively, Requester), submitted a RTKL request to the District. Therein, Requester sought information in connection with an incident involving an elementary school teacher who, according to Requester, had roughly physically disciplined a child on a school bus outside of the school. Although its rationale departed from the analysis of the Commonwealth Court, the Supreme Court affirmed the lower court’s order, with instructions to redact students’ images from the video prior to disclosure. View "Easton Area Sch. Dist. v. Miller" on Justia Law

The United States District Court for the Western District of Washington certified two questions to the Washington Supreme Court in connection with the meaning of the Washington Law Against Discrimination (WLAD), chapter 49.60 RCW. The federal trial court asked: (1) whether a school district was subject to strict liability for discrimination by its employees in violation of the WLAD; and (2) if yes, then did "discrimination," for the purposes of this cause of action, encompass intentional sexual misconduct, including physical abuse and assault? Gary Shafer was hired by the Olympia School District in 2005 as a school bus driver. It was undisputed that Shafer, during his employment, abused passengers on school buses, including P.H. and S.A., the minor plaintiffs in this case. Plaintiffs sued the school district in federal court, naming multiple defendants, and claiming both state and federal causes of action. Defendants moved for summary judgment, which was granted in part and denied in part. In response to the Washington Supreme Court's decision in Floeting v. Group Health Cooperative, 434 P.3d 39 (2019), plaintiffs successfully moved to amend their complaint to include a claim under the WLAD. The amended complaint alleges that the minor plaintiffs’ treatment constituted sex discrimination in a place of public accommodation. The Supreme Court answered "yes" to both certified questions: a school district may be subject to strict liability for discrimination in places of public accommodation by its employees in violation of the WLAD; and under the WLAD, discrimination can encompass intentional sexual misconduct, including physical abuse and assault. View "W.H. v. Olympia School Dist." on Justia Law

The Supreme Court reversed the decision of the court of appeals reversing the judgment of the trial court upholding the transfer of a tenured teacher (Plaintiff), working as a school administrator, to a teaching position because Plaintiff did not have an administrator license, holding that Plaintiff failed to prove that the transfer decision was not made in good faith and was arbitrary, capricious, or improperly motivated.In reversing the trial court, the court of appeals held that a regulation required the director of the school system to review the administrative duties Plaintiff had performed in the past in order to determine whether an administrator license was required, and the director's failure to do so rendered his transfer decision arbitrary and capricious. The Supreme Court reversed, holding (1) Plaintiff pointed to no provision in the Teacher Tenure Act that prevents a school system from establishing instructional leadership by school administrators as a priority; (2) consistent with the school system's priorities, Plaintiff was precluded from having administrative duties in the upcoming school year that involved more than fifty percent instructional leadership absent an administrator license; and (3) consequently, the director's failure to consider Plaintiff's past work did not render the transfer decision either arbitrary or capricious. View "Geller v. Henry County Board of Education" on Justia Law