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Legal Updates for Special Education Law

Legal Update for Special Education Law – Case Law Update

Legal Update for Special Education Law – February 2025

February 1, 2025

by Jacob M. Gilboy

Federal District Court Orders School District to Immediately Place Disabled Student in Residential Facility
S.M. by & through Michael C. v. Chichester Sch. Dist., No. CV 21-4266, 2024 WL 4438472, (E.D. Pa. Oct. 7, 2024)

S.M. is a 17-year-old boy whose autism and intellectual disabilities make it impossible for him to learn in a regular classroom. S.M.’s parents cannot provide for his needs by themselves, and when S.M. has lived at home, he has been hospitalized multiple times because of concerns for his safety and the safety of his family.

In August of 2020, S.M. obtained an IEP that included a component for residential education placement. In September 2021, S.M.’s parents sued the district, alleging the district had violated the Individuals with Disabilities Education Act and Section 504 of the Rehabilitation Act by failing to provide S.M. a free appropriate public education. In February 2022, S.M.’s parents moved for a preliminary injunction, requiring the district to secure a residential educational placement for S.M. Although the district had proposed various placements for S.M., none were agreed upon by the parties. In opposing the suit, the district argued that S.M. did not need a residential educational placement to receive a free appropriate public education and, further, that S.M.’s behaviors had improved over time.

The court disagreed and found that, because S.M. required a placement with the capability to produce educational progress for S.M., this was necessary for the district’s substantive obligations under the IDEA. “S.M. needs uniformity and consistency across school and residential settings to make appropriate educational progress.” As a result, the district was ordered to take immediate steps to fund and secure S.M.’s admission to such a facility. 


 

Legal Update for Special Education Law – February 2025 is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2025 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.

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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.