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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 – January 2026

January 1, 2026

by Christopher J. Conrad

Court Upholds Hearing Officer’s Decision and Grants Full Attorneys’ Fees After School Misses IDEA Appeal Deadline    
A.L.L., A.L. v. Laboratory Charter School, 2025 WL 3269941 (E.D. Pa. Nov. 24, 2025)

The parent, A.L., filed a special education due process complaint against Laboratory Charter School, alleging the school failed to provide her child, A.L.L., with a free appropriate public education (FAPE) during the student’s third and fourth grade years and related Extended School Years. Following a two-day hearing, the hearing officer found in favor of the parent, agreeing the school violated the child’s right to a FAPE, and awarded compensatory education in the amount of five hours for each school day the school was in session during this time period.

Three months later, A.L. and her child filed a complaint in federal court, asserting they were the “prevailing party” at due process for purposes of the IDEA, and sought an award of reasonable attorney’s fees and costs. In its answer, the school raised affirmative defenses and asked the court to overturn the hearing officer’s decision in its entirety.

One day after the plaintiffs filed their federal complaint—and one day past the 90-day deadline under IDEA § 1415(i)(2)(B)—the school separately filed its own complaint in federal court in the nature of an appeal from the hearing officer’s decision. The school affirmatively asked the court to overturn the hearing officer’s decision, contending it did not deny the child a FAPE and asserting the hearing officer erred in finding there was a denial of a FAPE. The court promptly granted the plaintiffs’ Rule 12 motion to dismiss the school’s complaint because it was untimely. 

The court directed the parties to confer on a briefing schedule concerning the plaintiffs’ request for prevailing party fees and costs, and the court thereafter issued a scheduling order. The plaintiffs filed a motion for fees and costs. Rather than responding substantively to the plaintiffs’ motion, however, the school instead filed its own motion seeking leave of the court to amend its answer and, specifically, to include a counterclaim to challenge the validity of the hearing officer’s decision—effectively the same affirmative relief the school sought on appeal. The school also asked the court to defer ruling on the plaintiffs’ motion as premature.

In resolving the competing motions, the court first denied the school’s motion and its request to amend its answer. In rejecting the school’s arguments, the court noted the school’s intended counterclaim was essentially a verbatim copy of the amended complaint it had filed in its untimely appeal: “So, Lab Charter asks us to permit it to file, as an amended answer, exactly what it filed as its amended complaint in its unsuccessful appeal before us…” The court found it would be futile to allow the amendment under the circumstances: “We dismissed Lab Charter’s appeal … under Rule 12(b)(6) because it was untimely. It thus would be futile to permit Lab Charter’s counterclaims—which we already dismissed in the other case—to move forward in this case.”

The court also granted the plaintiffs’ motion, concluding they were the “prevailing party” under the IDEA for purposes of their affirmative claims. In its reasoning, the court once again highlighted the school’s untimely appeal from the hearing officer’s decision: “Lab Charter lost its opportunity to seek modified de novo review of the administrative record below by failing to timely appeal the hearing officer’s decision. Accordingly, we are faced with a situation where we are adjudicating only whether petitioners are entitled to attorneys’ fees and costs arising out of their IDEA claims, but we are not doing so in the context of a … substantive challenge to the administrative decision.” 

The court went on to state: “This [hearing officer] decision is final and, because Lab Charter did not timely appeal it, we cannot effectively override the statutorily imposed 90-day deadline by now conducting modified de novo review of the administrative record. At this point, the only question properly before us is what, if any, attorneys’ fees and costs should be awarded to petitioners.” The plaintiffs sought $164,173.84 in fees and costs incurred in the administrative due process hearing and in the two federal cases relating to that hearing. The court granted this request in its entirety: “Petitioners prevailed at the administrative due process proceeding, sought fees and costs related to their work from that proceeding, and defended their victory in that proceeding when Lab Charter attempted to appeal its outcome. All this work was reasonably expended in furtherance of the outcome achieved by petitioners.”

Legal Update for Special Education Law – January 2026 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 © 2026 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.
 

Firm Highlights

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict. 

Thought Leadership

Ohio Supreme Court Holds That a Binding Appraisal Award May Not Be Set Aside Absent Specific Evidence of Manifest Mistake or Fraud

On July 23, 2026, the Ohio Supreme Court issued a rare opinion on the binding effect of an appraisal award in a property insurance policy.  The Court in One Church held: A binding appraisal award will not be set aside unless an error is so palpably wrong that it undermines the intent of the agreement, such as corruption or gross mistake, not a mere error of judgment—To plead a claim of mistake with particularity as required by Civ.R. 9(B), facts alleged in a complaint must constitute the elements of mistake—Allegation that additional, hidden damage was discovered after appraisal award failed to state a claim of mistake that could justify setting aside binding appraisal.  The case arose out of a claim brought by One Church against its insurer, Brotherhood Mutual Insurance Company for roof damage from a storm. Pursuant to the terms of the insurance policy, the parties agreed to submit the matter to appraisal. The two appraisers inspected the building, and both appraisers agreed that the damages were $313,271.98. The insurer paid the agreed appraised amount.  Thereafter, the insured submitted a claim for an additional $206,663.09 in damages. The insured argued that these additional damages were not discovered until after the repairs began, and that they should be permitted to submit an additional claim, even though there had already been a binding appraisal of damages. The insurer refused to pay the additional damages, and the insured sued for breach of contract and bad faith.  In the trial court, the insurer moved to dismiss for failure to state a claim, arguing that the binding appraisal award barred any further claims. The insured took the position that additional hidden damages could not be discovered until after the repairs began, and therefore there was a mutual mistake. The trial court dismissed the case on the insurer’s motion, because there was no “evidence of fraud, misfeasance, or mistake”. The Court of Appeals agreed that appraisal awards are generally binding, but noted that an appraisal award can be set aside for fraud or manifest mistake. The Court of Appeals reversed and remanded the case to the trial court, finding that the insured had pled mistake with sufficient particularity. The insurer appealed to the Ohio Supreme Court. On appeal, the Ohio Supreme Court reversed the Court of Appeals, and reinstated the trial court decision dismissing the case for failure to state a claim upon which relief can be granted. The Supreme Court found that since the insured had already demanded appraisal, and the appraisal award was binding, “something more than error of judgement, such as corruption in the arbitrator, or gross mistake” must be pled with particularity, and proven for the insured to override the appraisal award. Since the complaint did not allege fraud or manifest mistake with sufficient particularity, something more than a mere error of judgment, the complaint was insufficient to state a claim.  The complaint in this case did not challenge the appraisal award. It pled that additional damages were discovered that were not apparent when the appraisal was done. It did not specify “who discovered the damages, how they were discovered, where they were found, why they were previously hidden, or why they rise to the level of a manifest mistake that the “appraiser would have corrected...had it been called to his attention”. Id at ¶22 citing Lakewood Mfg. Co. v. Home Ins. Co. of New York, 422 F.2d 796, 798 (6th Cir. 1970). Cases deciding the effect of appraisal awards are unusual. The Ohio Supreme Court’s decision in One Church relies primarily on 19th century case law for its conclusion. This emphasizes the fact that there is minimal case law deciding the effect of binding appraisal clauses in property insurance policies, and makes this case all the more significant. A lengthy dissent was written by Justice Fisher, who would have affirmed the Court of Appeals decision reversing and remanding the case for a decision on the merits. Of course, the decision works both ways, and an insurer dissatisfied with a binding appraisal award will likewise be without further recourse absent evidence of corruption, fraud, misfeasance, or manifest mistake, which must be pled with particularity. To constitute manifest mistake, “the mistake must be of such character that the arbitrator or appraiser would have corrected it had it been called to his attention.”  Lakewood Mfg. Co. v. Home Ins. Co. of New York, 422 F.2d 796, 798 (6th Cir. 1970).  The majority opinion does not specifically identify what would have been sufficient to plead mistake with particularity, or if the insured could have amended the complaint to overcome the deficiencies. The dissent argues that this was not really a case alleging mistake, but rather a question of contract interpretation. The insured did not challenge the appraisal, but argued that the hidden damage was not part of the appraisal, and the appraisal only covered the known damages.  However, this argument did not carry the day with the majority.  *Thomas F. Glassman, a shareholder in Marshall Dennehey’s Cincinnati office, filed a brief in the Ohio Supreme Court on behalf of the Ohio Association of Civil Trial Attorneys, in support of the insurer’s position.