Virginia Dept. of Educ. v. Riley, 94-1411
| Citation | 23 F.3d 80 |
| Decision Date | 29 April 1994 |
| Docket Number | No. 94-1411,94-1411 |
| Parties | 91 Ed. Law Rep. 82 VIRGINIA DEPARTMENT OF EDUCATION, Petitioner, v. Richard W. RILEY, United States Secretary of Education; United States Department of Education, Respondents. Mental Disabilities Law Clinic of the T.C. Williams School of Law; Virginia School Boards Association; Fairfax County School Board, Amici Curiae. |
| Court | United States Courts of Appeals. United States Court of Appeals (4th Circuit) |
William Henry Hurd, Deputy Atty. Gen., Office of the Atty. Gen. of Virginia, Richmond, VA, argued , for petitioner.
Marie K. McElderry, U.S. Dept. of Justice, Washington, DC, argued (Helen F. Fahey, U.S. Atty., Robert W. Jaspen, Asst. U.S. Atty., Richmond, VA, Deval L. Patrick, Asst. Atty. Gen., David K. Flynn, Linda F. Thome, U.S. Dept. of Justice, Washington, DC, on pleadings), for respondents.
Kathe A. Klare, Director, Michael C. Guanzon, Sandra L. Karison, Jofelyn A. Ceballos, Joni A. Hong, University of Richmond Law School, Richmond, VA, for amicus curiae Mental Disabilities Law Clinic.
Kathleen S. Mehfoud, D. Patrick Lacy, Jr., Hazel & Thomas, P.C., Richmond, VA, Richard Carter, McClure, Callahan, Carter & Atkins, Charlottesville, VA, for amicus curiae Virginia School Boards Ass'n.
Thomas J. Cawley, Grady K. Carlson, John F. Cafferky, Hunton & William, Fairfax, VA, for amicus curiae Fairfax County School Bd.
Before ERVIN, Chief Judge, and MURNAGHAN and WILKINSON, Circuit Judges.
Petition granted by published opinion. Judge WILKINSON wrote the opinion, in which Chief Judge ERVIN and Judge MURNAGHAN joined.
This case involves the statutory obligations of the United States to deal fairly with the recipients of funds under federal grant programs. Specifically, the question is whether the United States Department of Education can withhold more than $50 million in funding granted to the Commonwealth of Virginia under the Individuals with Disabilities Education Act, Subchapter II, 20 U.S.C. Secs. 1411-1420, without affording Virginia either notice or the opportunity for a hearing. Because we believe such a hearing is required under 20 U.S.C. Sec. 1416(a), and because no hearing has been held, we hereby direct the Department of Education to release Virginia's fiscal year 1994 grant. Additionally, any subsequent grants for the FY 1993-1995 grant period shall not be withheld until appropriate notice and a hearing have been provided.
Subchapter II of the Individuals with Disabilities Education Act ("IDEA-B") provides federal financial assistance to state and local education agencies for the education of disabled children. IDEA-B is administered by the Office of Special Education Programs ("OSEP"), within the Office of Special Education and Rehabilitative Services ("OSERS") of the Department of Education ("USDOE"). In order to receive funding under IDEA-B, a state must submit to the Secretary of Education a comprehensive "state plan" effective for a period of three fiscal years. See 20 U.S.C. Sec. 1413; 34 C.F.R. Sec. 300.110. In August 1992, the Virginia Department of Education submitted to OSEP the Commonwealth's plan for fiscal years 1993 to 1995. On October 29, 1992, the plan was "conditionally approved" by Robert Davila, Assistant Secretary of Education for OSERS. With that approval, Virginia could receive its grant for FY 1993, which commenced on July 1, 1992. The Commonwealth would also receive "full approval" of its three-year plan if it took several specific actions set out in the October 29 approval letter.
Included with the plan submitted by Virginia in August 1992 was a copy of the Virginia Board of Education's "Regulations Governing Special Education Programs for Handicapped Children and Youth in Virginia." Regarding discipline of disabled children, the regulations stated that "[i]f there is no causal connection [between a child's misconduct and his or her disability] and if the child was appropriately placed at the time of the misconduct, the child may be disciplined the same as a non-handicapped child." Despite the inclusion of this regulation in materials submitted prior to the plan's "conditional approval" at the end of October 1992, the USDOE waited until December 1993 to inform Virginia that its rule governing discipline of disabled children was contrary to Department policy.
On December 17, 1993, the USDOE notified the Virginia Department of Education that the state could not cease the provision of educational services to disciplined disabled children even if the discipline resulted from behavior unrelated to the child's disability. Relying on 20 U.S.C. Sec. 1412(1), which states that in order to qualify for IDEA-B assistance in any fiscal year, a state must demonstrate to the Secretary that it "has in effect a policy that assures all children with disabilities the right to a free appropriate public education," the USDOE claimed that the Commonwealth was required to provide education to all disabled students regardless of the reasons underlying a particular student's expulsion. The Secretary stated that the Department's position on the discipline of disabled children, although not formally published as a regulation, had been publicly circulated as early as 1989. As a result, the USDOE informed the Commonwealth that its 1993-1995 plan would be disapproved, and the earmarked funding discontinued, if Virginia failed to amend its regulations to comply with USDOE policy. The USDOE attributed its initial approval of Virginia's state plan to an "oversight" on its part.
In the months following, officials from Virginia's Department of Education and elected state officials attempted to persuade the USDOE to release Virginia's FY 1994 funds which had been conditionally approved in November 1993. At stake was all of Virginia's IDEA-B grant for FY 1994, totalling over $50 million. Virginia contended that its discipline policy for disabled students was educationally sound. The Commonwealth argued that under the USDOE's stated policy, a slightly impaired student who commits a violent act in school--an act totally unrelated to his or her disability--could never be deprived of free educational services. Virginia contended that Sec. 1412(1) did not support the Secretary's position because the very concept of public education presupposes that a student has not forfeited that right by committing an expellable act wholly unrelated to his or her handicap as defined by statute. Virginia further complained that programs serving the Commonwealth's 128,000 disabled students would be jeopardized by loss of the funds, while only 76 disabled students, all of whom had been provided with statutorily mandated due process protections, had been expelled for conduct unrelated to their disabilities.
The USDOE, however, was apparently unimpressed with Virginia's contentions, and on March 4, 1994, formally notified Virginia that the Secretary proposed to disapprove the Commonwealth's current three-year plan. On March 21, 1994, Virginia sought an administrative hearing to contest the proposed disapproval. See 20 U.S.C. Secs. 1413(c) & 1416(b)(1); 34 C.F.R. Sec. 300.584 et seq. At that time, the USDOE refused to release any of the FY 1994 funds to Virginia pending the administrative appeal, explaining that it lacked the authority to do so in the absence of plan approval. Furthermore, the USDOE stated that if Virginia amended its disciplinary policy in order to receive plan approval, then there would no longer be any basis to continue the administrative appeal. Accordingly, Virginia could not receive the funds under its FY 1994 grant while pursuing an administrative challenge to the USDOE's policy.
The Commonwealth of Virginia now petitions this court for interlocutory relief, seeking the release of its $50.2 million grant for FY 1994.
Before addressing the merits of petitioner's claims, we must first establish whether this court possesses jurisdiction to grant the requested relief. This issue is of concern here because the Commonwealth is seeking relief from an administrative action in the absence of a final order issued by the USDOE. Ordinarily, courts of appeals are limited to reviewing only the final determinations of agencies over which they exercise appellate review. Virginia contends that here, however, this court has jurisdiction under the All Writs Act, 28 U.S.C. Sec. 1651, to grant the relief sought.
It is well-settled that in rare instances an appellate court may act under the authority of the All Writs Act in granting interlocutory relief to a party aggrieved by administrative actions when the court would have full appellate jurisdiction following a final agency decision. See State of North Carolina, Envtl. Policy Inst. v. EPA, 881 F.2d 1250, 1256-57 (4th Cir.1989) (Phillips, J., in chambers); Gulf Oil Corp. v. Department of Energy, 663 F.2d 296, 312 (D.C.Cir.1981). See generally Telecommunications Research & Action Ctr. v. FCC, 750 F.2d 70, 75 (D.C.Cir.1984). It is clear that this authority is to be exercised sparingly and that relief is not to be granted unless irreparable harm is likely. See Reynolds Metals Co. v. FERC, 777 F.2d 760, 762 (D.C.Cir.1985); Public Util. Comm'r v. Bonneville Power Admin., 767 F.2d 622, 630 (9th Cir.1985). The crucial inquiry in determining whether such relief is appropriate is whether the problem raised by petitioner "is one that can be safeguarded against in the very course of the ongoing administrative proceedings." North Carolina, Envtl. Policy Inst., 881 F.2d at 1257.
In the case before us, Virginia claims that the USDOE has failed to follow statutorily mandated procedures by withholding further funding without affording the Commonwealth notice and a hearing. Petitioner contends that...
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