Murphy v. Timberlane

USCA1 Opinion









August 28, 1992 UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
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No. 91-2272

KEVIN W. MURPHY, ET AL.,

Plaintiffs, Appellants,

v.

TIMBERLANE REGIONAL SCHOOL DISTRICT,

Defendant, Appellee.

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ERRATA SHEET


Please make the following corrections in the opinion in the
above case released on August 19, 1992:

Page 3, line 10: delete the extra period after "U."

Page 4, line 2: insert a comma after "1981".

Page 4, line 4: insert a comma after "1982".
August 19, 1992 UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
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No. 91-2272

KEVIN W. MURPHY, ET AL.,

Plaintiffs, Appellants,

v.

TIMBERLANE REGIONAL SCHOOL DISTRICT,

Defendant, Appellee.

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APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW HAMPSHIRE

[Hon. Shane Devine, U.S. District Judge]
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Before

Cyr, Circuit Judge,
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Roney,* Senior Circuit Judge,
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and Pieras,** District Judge.
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Michael R. Chamberlain with whom Chamberlain and Connor were on
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brief for appellants.
Diane M. Gorrow with whom Gerald M. Zelin and Soule, Leslie,
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Zelin, Sayward and Loughman were on brief for appellee.
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* Of the Eleventh Circuit, sitting by designation.
** Of the District of Puerto Rico, sitting by designation.




RONEY, Senior Circuit Judge: This case arises under the
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Individuals with Disabilities Education Act (Act), 20 U.S.C. 1400 et
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seq. Kevin W. Murphy, along with his parents and guardians, Janice
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and Kevin C. Murphy, are seeking compensatory education for a two-year

period during which Kevin received no special educational services.

Both the administrative hearing officer and the United States District

Court for the District of New Hampshire entered orders for defendant

Timberlane Regional School District, ruling by way of summary judgment

that the Murphys' compensatory education claim was barred by laches.

Since the parents' delay in filing suit was not unreasonable and

factual disputes remain concerning the school district's claim of


















prejudice, we vacate and remand to the district court for further

proceedings.

The Act requires that to qualify for federal financial

assistance, participating states must adopt policies assuring all

students with disabilities the right to a "free appropriate public

education." 20 U.S.C. 1412(1). New Hampshire has adopted the

required policies and attempts to comply with the requirements of the

Act.

As defined by the Act, the term "free appropriate public

education" refers to the special education and related services that

must be provided in conformity with an individualized education

program (IEP). 20 U.S.C 1401(a)(20). An IEP is a statement of the

educational program which must be written for each child and designed

to meet each child's unique needs. 20 U.S.C 1401(a)(19). The IEP

is developed by a team including a qualified representative of the

local educational agency, the teacher, the parents or guardian, and,

where appropriate, the student. Id. In New Hampshire, this team is
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referred to as the Pupil Placement Team. The IEP must be reviewed at

least annually and revised when necessary. 20 U.S.C. 1414(a)(5).

An IEP is appropriate under the Act if it provides instruction and

support services which are reasonably calculated to confer educational

benefits to the student. Board of Education v. Rowley, 458 U.S. 176,
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203-07 (1982); Abrahamson v. Hershman, 701 F.2d 223, 226-27 (1st Cir.
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1983).

The Act further requires states to establish and maintain certain

procedures "to assure that children with disabilities and their


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parents or guardians are guaranteed procedural safeguards with respect

to the provision of free appropriate public education." 20 U.S.C.

1415(a). Parents who believe that a proposed IEP is inappropriate are

entitled to an impartial due process hearing. 20 U.S.C. 1415(b)(2).

Any party aggrieved by the decision of the administrative hearing

officer may appeal to either state or federal court. 20 U.S.C.

1415(e)(2).

Kevin W. Murphy was born on July 9, 1968. He is a disabled

individual who is entitled to special educational services under the

Act. Kevin's disabilities include spastic paraplegia, cortical

blindness (difficulty processing visual stimuli), tactile agnosia

(difficulty processing tactile input), and mild mental retardation.

In 1976, the Murphys moved to Plaistow, New Hampshire, which is

in the Timberlane Regional School District (Timberlane or the

district). In September 1981, Kevin was transferred from his previous

placement to a special program at Charlotte Avenue School, a public

elementary school in Nashua, New Hampshire. Although Kevin's parents

had originally agreed to this new placement, they soon became

concerned about the appropriateness of the placement, and expressed

their objections to Kevin's teacher and to Timberlane's special

education administrators. In December 1981, Kevin suffered a seizure

at home, and his parents decided not to return Kevin to school after

the winter break.

In January 1982, the school superintendent authorized the

director of special education to provide tutorial services to Kevin in

his home. A year later, the State Department of Education strongly


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recommended that the district provide Kevin with home-based

instruction. No such services were ever provided.

Mr. Murphy wrote letters to Timberlane in January and February

1982, notifying the school district of his decision to keep Kevin at

home, complaining that Kevin was being denied an education, and

threatening to bring an action against the district. Kevin remained

at home throughout 1982 and 1983.

Between January 1982 and January 1984, numerous IEP meetings were

held between Kevin's parents and district officials in an attempt to

develop an appropriate program for Kevin. Although the parties'

accounts of the facts differ on who was cooperative and who was

obstinate, it is clear that there were a number of disagreements over

the appropriateness of different proposed placements and evaluations.

The Murphys rejected a number of IEPs presented to them by the

district. In June 1982, Kevin attended school in a third grade

classroom for the last two weeks of the school year. The purpose of

this placement was to allow Timberlane an opportunity to evaluate

Kevin and assess his needs so that an appropriate IEP could be

developed for the following school year.

In November 1982, the district initiated truancy proceedings

against Kevin's parents because of Kevin's absence from school. These

proceedings were never completed. In January 1984, the Pupil

Placement Team finally agreed on a placement for Kevin in the Get Set

Program at Pinkerton High School. Although Kevin's May 1985 IEP

indicated that Kevin might complete the Get Set Program as early as




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June 1987, Kevin remained in the program through the end of 1988-89

school year.

In May 1988, Kevin's Pupil Placement Team met to develop an IEP

for the 1988-89 school year. Although Kevin would turn 21 in July

1989, there was evidence that the Team assumed that this was not the

final IEP to be developed for Kevin and that Kevin would be permitted

to continue his education until he completed the program at Pinkerton

High School. In November 1988, Mr. Murphy met with Timberlane's

Superintendent, Terrance Holmes, to discuss whether Timberlane would

provide schooling beyond Kevin's 21st birthday. Mr. Holmes agreed to

present Mr. Murphy's request to the School Board. On January 5, 1989,

the Superintendent recommended to the School Board that Kevin be

allowed to continue at Pinkerton High School beyond his 21st birthday.

The Board rejected the recommendation by a vote of six to three.

Kevin turned 21 on July 9, 1989. On July 24, 1989, George

Wright, Timberlane's local education agency representative and a

member of Kevin's IEP team, wrote to Kevin's parents enclosing an

Annual Statement of Placement discharging Kevin as a special education

student. In August 1989, the Murphys appealed the discharge and

requested an administrative hearing. The Murphys sought compensatory

education for Kevin beyond the statutorily required age of 21 because

of the district's failure to provide special education and related

services from January 1982 through January 1984.

On February 27, 1990, an administrative hearing officer denied

Timberlane's motion for summary judgment, rejecting the district's

laches argument and applying a six-year statute of limitations. Upon


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the district's motion for reconsideration, the hearing officer

reversed himself, and on April 23, 1990, found that laches barred the

Murphys' claim. The parents appealed to the United States District

Court for the District of New Hampshire. On August 26, 1991, that

court ruled that compensatory education is available under the Act,

but granted summary judgment for the district based on its laches

defense. The court denied the Murphys' motion to reconsider and

entered its judgment on October 31, 1991.

This circuit has not yet decided whether compensatory education

is a permissible form of relief under the Act. Other circuits which

have addressed the issue have allowed compensatory education, likening

this form of relief to the reimbursement we permitted in Town of
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Burlington v. Department of Education, 736 F.2d 773, (1st Cir. 1984),
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aff'd, 471 U.S. 359 (1985). Indeed, according to our research, every
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circuit which has addressed this issue since our decision in

Burlington was affirmed by the Supreme Court has found that
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compensatory education is available under the Act. See, e.g., Lester
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H. v. Gilhool, 916 F.2d 865 (3d Cir. 1990), cert. denied sub nom.
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Chester Upland Sch. Dist. v. Lester H., U.S. , 111 S. Ct. 1317
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(1991); Burr v. Ambach, 863 F.2d 1071 (2d Cir.), vacated and remanded
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sub nom. Sobol v. Burr, 492 U.S. 902, 109 S.Ct. 3209 (1988), reaff'd,
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888 F.2d 258 (2d Cir. 1989), cert. denied, 494 U.S. 1005 (1990);
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Jefferson County Bd. of Educ. v. Breen, 853 F.2d 853 (11th Cir. 1988);
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Miener v. State of Missouri, 800 F.2d 749 (8th Cir. 1986).
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Assuming that compensatory education is available in this

circuit, it, like reimbursement, is a form of equitable relief. See
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Burlington, 736 F.2d at 799, 801-02; Jefferson County Bd. of Educ.,
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853 F.2d at 857-58. Thus equitable defenses are available to a claim

for compensatory education.

The equitable doctrine of laches is an affirmative defense that

serves as a bar to a claim for equitable relief "where a party's delay

in bringing suit was (1) unreasonable, and (2) resulted in prejudice

to the opposing party." K-Mart Corp. v. Oriental Plaza, Inc., 875
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F.2d 907, 911 (1st Cir. 1989). See Gutierrez v. Waterman Steamship
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Corp., 373 U.S. 206, 215, reh'g. denied, 374 U.S. 858 (1963).
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We reverse the district court's grant of summary judgment on the

ground that the claimed is barred by laches for two reasons. First,
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the Murphys' delay in filing their claim was not so unreasonable as to

make the laches defense available without a clear showing of

prejudice. Second, summary judgment was improper because genuine
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issues of material fact remained concerning Timberlane's assertion of

prejudice.

We review the district court's application of laches for abuse of

discretion. K-Mart Corp. v. Oriental Plaza, Inc., 875 F.2d 907, 911
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(1st Cir. 1989). The discretion of the district court, however, is

confined by established standards. We have been unable to find any

cases applying the laches doctrine to a claim brought under the Act,

indicating that perhaps the doctrine should be applied sparingly to

facilitate Congress' policy concerning the education of children with

disabilities. Cf. Park County Resource Council, Inc. v. United States
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Dept. of Agric., 817 F.2d 609, 617 (10th Cir. 1987).
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The district court found that the Murphys' delay in filing their

claim for compensatory education was unreasonable because the parents

kept Kevin out of school for two years; failed to cooperate with the

school in 1982 and 1983; and waited approximately six years before

seeking relief. Murphy v. Timberlane Regional Sch. Dist., No. 90-265-
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D at 20-21 (D.N.H. Aug. 26, 1991).

Although the Murphys could have requested a due process hearing

in late 1981 when they first felt that the education being provided by

Timberlane was inappropriate, they chose instead to negotiate with the

school in an attempt to secure an appropriate program for Kevin. The

Murphys attended no less than six meetings between January and

September 1982. Further, although the Pupil Placement Team had not

yet agreed on a program for Kevin, the Murphys agreed to allow Kevin

to attend school for a short period in June 1982 for the purpose of

evaluating Kevin and determining his needs. Obviously, the Murphys

were not sitting on their rights, but were attempting to resolve their

differences with the school district without resorting to litigation.

Second, the Murphys' delay was not unreasonable because until the

summer of 1989, the Murphys were not certain that the school district

would end Kevin's education when he reached 21. Although the Act only

requires school districts to provide free appropriate public education

to students between the ages of 3 and 21, it was not entirely

unreasonable for the Murphys to postpone litigation with the hope that

Timberlane would voluntarily provide additional education to

compensate for Kevin's two years at home.




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Third, we are troubled by Timberlane's attempt to fault the

Murphys for their failure to file for a due process hearing when,

although the parents are entitled to request a hearing if they

disagree with an IEP, state regulations impose upon Timberlane not

only the right, but the obligation to do the same. In New Hampshire,
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if the parents disagree with a proposed IEP and the local educational

agency feels it would be in the best interest of the child to

implement the IEP, the local agency is required to initiate

administrative procedures to obtain permission from a hearing officer

to implement the IEP. N.H. Code Admin. R. Ed. 1125.01(b)(3)-b.1 No

such procedures were ever initiated by Timberlane.

Finally, in what appears to be an attempt to persuade the court

that the Murphys' delay in filing their claim was unreasonable,

Timberlane has set forth in detail what it describes as the Murphys'

obstructionism and obstinacy. While obstinacy on the part of the

parents may be relevant to entitlement to relief and when fashioning

the remedy, it has little to do with the doctrine of laches.

Even if the Murphys' delay had been unreasonable, however, the

laches issue should not have been resolved on summary judgment. In

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1 If the parent(s) inform the district of their disagreement,
or if they failed to make a decision within a specified time
frame, it shall be interpreted as disagreement with the
decision or action proposed by the local school district's
Special Education Evaluation/Placement Team. If the Local
Education Agency feels its action or decision should, in the
best interests of the student, be implemented, the Local
Education Agency shall initiate its right of due process as
specified in the Complaint and Impartial Due Process Hearing
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Procedures Section of the Standards to obtain the authority
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to implement its decision.

N.H. Code Admin. R. Ed. 1125.01(b)(3)-b.

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reviewing the district court's grant of summary judgment, we should

reverse "if we find that 'issues of fact which were adequately raised

before the district court need to be resolved before the legal issues

in the case may be decided.'" Lipsett v. University of Puerto Rico,
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864 F.2d 881, 895 (1st Cir. 1988) (quoting Greenburg v. Puerto Rico
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Maritime Shipping Auth., 835 F.2d 932, 934 (1st Cir. 1987)).
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The district court's conclusion that the Murphys' delay in filing

their claim prejudiced Timberlane was based on the following: because

Kevin is now over 21 years of age, the state will not reimburse

Timberlane for the costs associated with compensatory education;

memories of witnesses from the 1981-83 period have faded; most of the

principal actors from the 1981-83 period have left the jurisdiction of

Timberlane; and in light of the posture of this case, no stay-put

provision was in place, and Kevin has been out of any publicly funded

educational system since 1989.

The circumstances cited by the district court do not provide a

showing of prejudice sufficient to support summary judgment on the

basis of laches. The laches doctrine may be invoked only where the

prejudice to the defendant flows from the plaintiff's delay. See
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Gutierrez v. Waterman Steamship Corp., 373 U.S. 206, 215-16, reh'g
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denied, 374 U.S. 858 (1963); Puerto Rican-American Ins. Co. v.
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Benjamin Shipping Co., 829 F.2d 281, 284 (1st Cir. 1987); Cruz v.
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Hauck, 762 F.2d 1230, 1238 (5th Cir. 1985). Two of the factors relied
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on by the district court have nothing to do with the Murphys' delay in

filing their claim. Although it may be true that the state would not

contribute to Timberlane's expenditures on compensatory education,


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that hardship is not attributable to the parents' delay. If the

Murphys had sought and received a compensatory education award in

1984, Timberlane would still be required to bear the cost without

assistance from the state. Similarly, any prejudice to Timberlane

that might result from the fact that Kevin has been out of school

throughout the course of these proceedings is not attributable to the

parents' delay.

The two remaining factors upon which the district court relied

also do not support a grant of summary judgment. First, there was no

evidence before the district court that the memories of witnesses had

failed. Second, the district court's finding that key witnesses were

unavailable was premature. Timberlane measures unavailability by

reference to the subpoena power of the administrative agency.

Although it may be true that the hearing officer could not have

compelled the attendance of some of these witnesses, the subpoena

power of federal courts is not as limited. See Fed. R. Civ. P. 45(b).
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There was no showing that the presence of these witnesses could not

have been compelled by the district court or that the key witnesses

are actually unavailable even if they are beyond the court's subpoena

power. Although Timberlane identified four principal actors which it

claimed were unavailable, the Murphys point to evidence in the record

calling into doubt the school's assertion of unavailability. In light

of these unresolved issues of fact, the district court's grant of

summary judgment to Timberlane must be set aside. See Lipsett v.
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University of Puerto Rico, 864 F.2d 881 (1st Cir. 1988).
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Vacated and Remanded.
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