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Legal Updates for Special Education Law

Downsizing Has Not Slowed the U.S. Department of Education’s Pursuit of Title IX Investigations

Legal Updates for Special Education Law – April 2026

April 1, 2026

by Jacob M. Gilboy

The U.S. Department of Education continues to progress through its restructuring and downsizing as a result of the Trump administration’s promise to “break up the federal education bureaucracy and return education to the states.”

During a March 27, 2026, media release, the U.S. Department of Education stated as follows: “In a prudent step to save hundreds of millions of taxpayer dollars and further reduce the federal education bureaucracy in Washington, D.C., U.S. Secretary of Education Linda McMahon, U.S. Secretary of Energy Chris Wright, and General Services Administration (GSA) Administrator Edward C. Forst today announced that the U.S. Department of Education (ED) will move out of the Lyndon B. Johnson headquarters building. ED will relocate to 500 D Street SW, saving taxpayers approximately $4.8 million annually in operating costs and eliminating wasted space in a building that is roughly 70% vacant. ED’s move is targeted for August 2026.”

Nevertheless, the ED remains active in investigating Title IX matters. For example, on March 31, 2026, the Department of Education’s Office for Civil Rights (OCR) opened a complaint into the Contoocook Valley School District in Peterborough, New Hampshire, based on reports that the District was allowing biological men to use girls’ restrooms and locker rooms. The OCR has said it will investigate whether the district violated Title IX of the Education Amendments of 1972 (Title IX) by allowing students access to intimate facilities based on “gender identity,” not biological sex. Relative to Pennsylvania, the ED also recently reported that The University of Pennsylvania entered into a resolution agreement to comply with Title IX, based upon alleged competitive advantage in allowing males to compete in women’s collegiate sports (female swimming and diving).

While the future breadth and depth of the federal education agency remains uncertain, certain core functionality remains.

For more information visit: https://www.ed.gov/about/news/press-release/us-department-of-education-downsize-footprint-washington-dc-and-save-taxpayers-over-48-million-annually

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.