Opinion ID: 65337
Heading Depth: 3
Heading Rank: 2

Heading: Raising and disposing of the reimbursement issue in district court

Text: On February 10, 2005, the Texas Education Agency hearing officer declared the IEP to be inadequate. The Parish School was found to be an appropriate placement. V.P.'s parents were awarded payment for all of their daughter's 2004-2005 relevant expenses at the Parish School. On May 10, 2005, HISD filed an appeal in district court. On June 9, 2005, V.P. filed her answer and counterclaim, appealing the Hearing Officer's decisions on the issues for which she did not prevail at the due process hearing. This pleading did not include a claim for reimbursement for V.P.'s 2005-2006 placement at the Parish School. During a September 8, 2005 Rule 16 scheduling hearing, V.P. first informed the court that she intended to introduce evidence in addition to the administrative record for the district court's consideration on appeal. V.P. did not explain what additional evidence she intended to introduce and did not explain that the additional evidence pertained to V.P.'s 2005-2006 Parish School placement. HISD stated that it opposed the entry of additional evidence and that the case should be decided solely on the administrative record. On June 9, 2006, exactly a year after V.P. filed her answer, V.P. filed a motion to submit additional evidence in which she indicated that she intended to introduce reimbursement evidence regarding the costs of V.P.'s placement at the Parish School for the 2005-2006 school year. In a June 20, 2006 response, HISD objected to the motion, arguing that the only issue before the court was the correctness of the Hearing Officer's decision regarding the 2004-2005 school year, and the 2005-2006 private school bills were irrelevant to that issue. The case was eventually reassigned to a new district judge who requested a status report from the parties. In that report, V.P. again indicated that she needed to submit additional evidence regarding reimbursement for the 2005-2006 school year. On July 6, 2006, V.P. filed a supplemental motion to submit additional evidence. In this motion, V.P. alleged that the Parish School was the proper placement for V.P. during the pendency of HISD's appeal, and accordingly, V.P. [was] entitled to an automatic injunction providing her with reimbursement for the placement during the appeal, and until such time as HISD offers her an appropriate placement. HISD responded that V.P. was belatedly attempting to amend her complaint to assert a new claim for relief under the guise of a request to introduce additional evidence and that pendency placement had not been made an issue in the case. In a reply brief, V.P. contended that the right to reimbursement for ongoing tuition at the Parish School is automatic and is merely a continuation of the issues decided by the administrative hearing officer. V.P. further stated that reimbursement of the pendency placement is actually a cost which [she] is entitled to if she prevails in this matter and that HISD has not demonstrated that it was surprised or prejudiced by the pendency reimbursement claim. On August 9, 2006, the magistrate judge conducted a hearing regarding, among other things, V.P.'s motion to submit additional evidence. There were two items of evidence. One was a new affidavit from an expert, and the other were bills for the second school year. At the hearing, V.P. argued that the 2005-2006 Parish School bills were just an extension of the hearing officer's order and should be considered as a cost issue if the court decides to uphold that decision. The magistrate judge initially indicated she would deny V.P.'s request to submit the bills. Later in the hearing, in response to argument, the magistrate judge delayed decision until a future date, saying yes, if this goes your way, yeah, we'll consider that, but right now to keep amending to put the school bills in, you know, you haven't won yet. And we'll cross that bridge when it comes to it. The magistrate judge and counsel for HISD then engaged in the following exchange: THE COURT: I mean it seems to me that if you lose and the hearing officer's decision is implemented, HISD is going to have to pay those bills, right? And we will have to know what they are. HISD COUNSEL: Well, irrespective I don't necessarily agree to that, but irrespective of that, in terms of the [c]ourt's time... it makes more sense for you to rule on the motion for summary judgment because if you rule for me, those issues will be moot ... and we won't have to touch on them. If you rule on all that stuff now, you may be making rulings that you won't have to make. THE COURT: Right. On March 2, 2007, the magistrate judge recommended granting in part and denying in part HISD's motion for summary judgment. With respect to the 2005-2006 Parish School costs, the memorandum explained that [a]lthough [V.P.] requests reimbursement for the costs of the Parish School during the pendency of this review, she did not move for summary judgment on that issue. The court refrains from addressing that matter at this time. On March 22, 2007, the district judge entered an order adopting the recommendation. The magistrate judge then ordered HISD and V.P. to file cross motions for summary judgment on the 2005-2006 reimbursement issue. On September 11, 2007, the magistrate judge recommended the denial of reimbursement for the 2005-2006 Parish School placement. The judge concluded that V.P.'s late mention of additional and ongoing education costs at the Parish School does not properly meet the requisite timing and form necessary to put [HISD] on notice of the 2005-2006 reimbursement claim. The judge also held that the failure to add this claim to the pleadings meant it could not be awarded as appropriate relief under the IDEA without ignoring the Federal Rules of Civil Procedure. Finally, the magistrate judge concluded that reimbursement for the 2005-2006 school year under the IDEA's stay put provision would be collateral to the court's review of the hearing officer's decision on the merits. [5] The district judge adopted the magistrate judge's memorandum and recommendation on October 4, 2007, over V.P.'s objections.