SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-1605-96T2
J.H.R.,
Plaintiff-Respondent,
v.
BOARD OF EDUCATION OF THE
TOWNSHIP OF EAST BRUNSWICK,
Defendant-Appellant.
Submitted September 16, 1997 - Decided January 20, 1998
Before Judges Pressler, Wallace and Carchman.
On appeal from the Superior Court of New Jersey, Law
Division, Middlesex County.
Martin R. Pachman, attorneys for appellant (Mr. Pachman of
counsel; Lisa A. Thomas on the brief).
Stanton & Steih, attorneys for respondent (Mark L.
Stanton of counsel; Joseph J. Sena, Jr. on the brief).
The opinion of the court was delivered by
CARCHMAN, J.S.C. (temporarily assigned).
J.N. is a thirteen-year-old profoundly disabled child
suffering from neurological impairment, blindness and
incontinence. He requires twenty-four hour care. Without
question, because of his disabilities, he is entitled to a free
education under the Individuals with Disabilities Education Act
(IDEA),
20 U.S.C.A.
§§1400-1491o and N.J.S.A. 18A:38-1, to be
paid for by the Board of Education of his domicile.
Even though J.N. has resided with his maternal grandparents
in East Brunswick for his entire life, defendant East Brunswick
Board of Education (East Brunswick) petitioned the Commissioner
of Education challenging J.N.'s domicile. East Brunswick
asserted that the obligation to pay for J.N.'s education was the
responsibility of the Edison Township Board of Education (Edison)
because J.N.'s mother, plaintiff J.H.R. moved to Edison Township
with her new husband. Even after plaintiff's marriage, J.N.
continued to remain in East Brunswick.
Not content with simply resolving the issue of domicile as
between East Brunswick and Edison, East Brunswick added another
count to its petition -- it sought reimbursement of tuition from
plaintiff in the event Edison was determined to be responsible
for the cost of J.N.'s education.See footnote 1 As a result of this
challenge and her exposure to the loss of J.N.'s benefits under
IDEA, plaintiff retained counsel and successfully defended East
Brunswick's challenge before the Office of Administrative Law
(OAL). Plaintiff incurred $15,000 in legal fees.See footnote 2
The OAL found that J.N. was domiciled in East Brunswick and
that East Brunswick was responsible for the cost of J.N.'s
education. The Commissioner of Education affirmed in December
1995. Thereafter, in May 1996, plaintiff commenced an action in
the Law Division seeking reimbursement for attorneys' fees
necessitated by plaintiff's defense of East Brunswick's claim for
tuition reimbursement. East Brunswick filed a motion to dismiss
plaintiff's complaint. Judge Douglas Wolfson in the Law Division
denied defendant's motion. Thereafter, plaintiff filed a motion
for summary judgment which Judge Wolfson granted and awarded
attorneys' fees. East Brunswick appealed.
We conclude that 1) East Brunswick's action for tuition
reimbursement from plaintiff places in issue J.N.'s right to a
free education under IDEA; 2) the Superior Court has concurrent
jurisdiction with the federal court to adjudicate fee actions
under IDEA; and 3) plaintiff's claim was timely filed.
Accordingly, we affirm.
J.N. has multiple disabilities. He is
neurologically impaired, blind and
incontinent, which requires him to wear
diapers. He has a kidney disease called
renal tubular acidosis which requires medical
care including daily medicine. J.N. needs
twenty-four-hour care.
J.N. is a classified student in the [East Brunswick's] school district, and has attended the Lakeview School in Edison since
1987. [East Brunswick] provides
transportation to the school.
[Plaintiff] is in the U.S. Army Reserves
on active duty. She has had personal medical
problems since March 1992 and she may need
further hospitalization and an operation.
[Plaintiff's] husband is employed as a full-time superintendent for a garden apartment
complex (approximately 900 apartments) in
Edison and his job requires him to live on
site and be on twenty-four-hour call.
Although financially [plaintiff] and her
husband can support J.N., they cannot give
him the extensive care he needs. According
to [plaintiff], there are no day-care centers
that will accept J.N. because of his
problems. [Plaintiff] visits her son at her
parents' home and sometimes takes him to
Edison for the weekend or on trips.
As stated, J.N. lives with his maternal
grandparents, and they provide him with
twenty-four-hour care. J.N.'s school states
that all of its contacts are with his
grandparents; the grandparents have nurtured
the child and provided all additional home
instruction and therapy. The grandparents
also support J.N., except that J.N.'s
medical, prescription drug and dental bills
are covered by his parents' insurance
policies. [Plaintiff] pays for some of
J.N.'s clothes and his diapers.
[Plaintiff] is divorced from J.N.'s
father and she has custody of their son.
J.N.'s father contributes support payments
which [plaintiff] puts into a bank account
for J.N. [Plaintiff] has given her mother a
power of attorney to take care of her son.
[Plaintiff] claimed her son as a
dependent on her 1993 federal and state
income tax forms. J.N. was claimed as a
dependent by his maternal grandparents on
their 1994 federal and state income tax
forms.
When the East Brunswick Board found out in October 1994 that J.N. was living with his grandparents and his mother was living in Edison, it requested that [plaintiff] and her
mother, P.H., complete its standard affidavit
forms for pupils living apart from parents.
The Brunswick Board initially received forms
that were not signed, not notarized and not
submitted in a timely manner.
Representatives of the Brunswick Board met
with [plaintiff] and P.H. regarding the
domicile of J.N. on February 16, 1995.
Based on these facts, the OAL made conclusions of law which
were adopted by the Commissioner:
I agree with the arguments of
[plaintiff] and the Edison Board and I
CONCLUDE that the Brunswick Board is
responsible for the free public education of
J.N. pursuant to the provisions of N.J.S.A.
18A:38-1(b)(1). J.N. and his grandparents
meet the criteria set forth in this statute.
It was clearly established by the facts that
J.N.'s grandparents are domiciled within East
Brunswick's school district and have assumed
all the obligations for J.N. relative to his
school requirements, and that J.N. is not
residing with them solely for the purpose of
receiving a free public education in [East
Brunswick]. Pursuant to the provisions of
N.J.S.A. 18A:38-1(b)(1), it is not necessary
that J.N.'s grandparents provide all of the
financial support for J.N. gratis, and the
facts in this case show that the grandparents
do provide a substantial portion of the
financial support for J.N. Also pursuant to
the statute, I CONCLUDE that J.N.'s mother is
not capable of providing care for him due to
family hardship. [East Brunswick's]
suggestion that [plaintiff] can secure day
care for J.N. is unrealistic in light of his
needs, and the facts clearly show that J.N.
is living with his grandparents because of
his disabilities and not simply for the
convenience of his mother.
. . . J.N. lives with his grandparents because of his needs and not for the convenience of his grandparents. . . . [C]ustody is not a requirement pursuant to N.J.S.A. 18A:38-1(b)(1). As to [East Brunswick's] argument regarding the domicile of [plaintiff], I agree that J.R.'s plans to
move back to East Brunswick are vague and
that she is currently domiciled in Edison.
The Commissioner adopted the findings and conclusions of the
OAL and affirmed in December 1995. Neither party filed an
appeal.
Plaintiff filed this independent action for attorneys' fees
pursuant to the fee-shifting provisions of
20 U.S.C.A.
§1415(e)(4)(B) (1986), amended by
20 U.S.C.A.
§1415(i)(3)(B)
(Supp. 1997) (the fee-shifting statute). Plaintiff claimed that
by seeking tuition reimbursement under these facts, East
Brunswick had implicated IDEA. She asserted that she met the
statutory threshold requirement of "prevailing party." East
Brunswick first challenged the applicability of IDEA.
Thereafter, East Brunswick asserted that the Superior Court was
without jurisdiction to consider a federal statutory claim for
attorneys' fees. Finally, it claimed that plaintiff's action for
fees was filed out of time. The trial judge disagreed with East
Brunswick, as do we.
children with disabilities have available to them a free
appropriate public education. Smith v. Indianapolis Public
Schools,
916 F. Supp. 872 (S.D. Ind. 1995). Congress has stated
that the purpose of IDEA is:
to assure that all children with disabilities
have available to them . . . a free
appropriate public education, which
emphasizes special education and related
services designed to meet their unique needs,
to assure that the rights of children with
disabilities and their parents or guardians
are protected, to assist States and
localities to provide for the education of
all children with disabilities, and to assess
and assure the effectiveness of efforts to
educate children with disabilities.
[
20 U.S.C.A.
§1400(c) (1986), amended by
20 U.S.C.A.
§1400(d) (Supp. 1997).]
In In re the Adoption of Amendments to N.J.A.C. 6:28-2.10,
3.6 and 4.3, N.J. Super. (App. Div. 1997) (slip op.),
(In re Amendments), we recently commented on the relationship
between the federal and state roles in implementing IDEA:
The IDEA (formerly the Education of All
Handicapped children Act (EAHCA)), provides
federal money to assist states and local
agencies in educating handicapped children.
Hendrick Hudson Dist. Bd. of Educ. v. Rowley,
458 U.S. 176, 179,
102 S. Ct. 3034, 3037,
73 L. Ed.2d 690, 695-96 (1982). Receipt of
those funds is conditioned on a participating
state's compliance with the IDEA's goals and
requirements. Lascari v. Board of Educ.,
Ramapo Indian Hills Reg'l Sch. Dist., 116
N.J. 30, 33-34 (1989); see also Hendrick
Hudson Dist. Bd. of Educ. v. Rowley, supra,
458 U.S. at 180-81, 102 S. Ct. at 3037-3038,
[73] L. Ed.
2d at 696. New Jersey has
elected to participate in the federal
program. As such, it has enacted
legislation, N.J.S.A. 18A:46-1 to -46, and
adopted regulations, N.J.A.C. 6:28-1.1 to
-12.l, that assure all handicapped children
the right to a free appropriate public
education (FAPE) as required by the IDEA.
N.J.A.C. 6:28-1.1(b)(1).
[In re Amendments, supra, N.J. Super., at
4-5; see also Rabinowitz v. New Jersey
State Bd. of Educ., 550 F. Supp. 481 (D.N.J.
1982).]
To protect one's rights under IDEA, the legislation provides for
an "impartial due process hearing" to be conducted by an
educational agency designated by the State, whenever the school
district proposes to change the placement of the child or refuses
to provide a "free appropriate public education to the child."
20 U.S.C.A.
§1415(b) (1986), amended by
20 U.S.C.A.
§1415(b), §
1415(e), § 1415(f) (Supp. 1997).
We recently described the process:
When a dispute arises between the board and
the parents, either party has the right to
resolve the matter through mediation and,
thereafter, an "impartial due process
hearing."
20 U.S.C.A.
§1415(b)(2), amended
by Pub. L. No. 105-17, § 615(b)(5), § 615(e),
§ 615(f),
111 Stat. 88, 90, 91 (1997) (
20 U.S.C.A.
§1415(b)(5), 1415(e), 1415(f)
(1997)). Under the New Jersey regulations,
when parents of a handicapped child are
dissatisfied with his or her education, they
have the right to request a mediation
conference, N.J.A.C. 6:28-2.6, or to request
a due-process hearing, N.J.A.C. 6:28-2.7. A
party aggrieved by the due process hearing
may bring a civil action in State or federal
court.
20 U.S.C.A.
§1415(e)(2), amended by
Pub. L. No. 105-17, § 615(i)(2)(A),
111 Stat. 92 (1997) (
20 U.S.C.A.
§1415(i)(2)(A)
(1997)).
[In re Amendments, supra, ___ N.J. Super. at
7.]
The issue before the OAL, while ostensibly a domicile dispute,
became a dispute between the "Board and the parent[s]" as will be
discussed, infra at IA.
The statute under which this proceeding was initiated by
East Brunswick in the Office of Administrative Law, N.J.S.A.
18A:38-1, provides that a public school education shall be free
to all students who are domiciled within the school district and
who meet certain criteria provided under N.J.S.A. 18A:38-1(b)(1).
Under that subsection, "[i]f in the judgment of the board of
education the evidence does not support the validity of the claim
by the resident, the board may deny admission to the child" and
collect an assessment of tuition from the resident. However, the
resident has the right to contest that decision to the
Commissioner and "[n]o child shall be denied admission during the
pendency of" such proceedings. Ibid. If the evidence does not
support the claim of the resident, then the Commissioner shall
impose a pro-rated assessment of tuition against such residents.
Generally, where an alleged handicapped child who falls within
the protection of IDEA is involved, the issue is not that of
residence but rather whether the child is disabled and, thus,
qualifies for benefits under IDEA. See, e.g., J.M. v. Freehold
Tp. Bd. of Educ.,
95 N.J.A.R 2d (EDS) 133 (1995) (Petitioner was
not eligible for Free Appropriate Public Education (FAPE) under
IDEA because the ALJ determined that petitioner's educational
problems resulted from his drug abuse, not a mental or physical
disability.); B.B. v. Hillsborough Bd. of Educ.,
94 N.J.A.R 2d
(Eds) 71 (1994) (ALJ ruled that rebellious child (petitioner) did
not qualify as educationally disabled and, thus, petitioner's
parents were not eligible for tuition reimbursement and
assessment costs under IDEA.). Unlike these cases where the
issue of disability is contested, J.N.'s physical circumstances
precluded any dispute as to his eligibility for relief under IDEA
and N.J.S.A. 18A:38-1. The only question should have been which
school board was going to pay for J.N.'s education.
The scope of the dispute was considerably expanded by East
Brunswick because East Brunswick not only raised the question of
which board had to pay but asserted a right to reimbursement by
plaintiff. Thus, the question was raised as to whether, because
of the dispute between two competing school boards, J.N. would be
deprived of a free education. East Brunswick suggests that this
is, nevertheless, not a dispute falling within the scope of IDEA,
and, absent such nexus, plaintiff is not entitled to relief.
The right to recover attorneys' fees under the fee-shifting
statute extends to actions or proceedings which have been heard
and resolved, as here, in administrative proceedings. Moore v.
District of Columbia, 907 F.2d 165 (D.C. Cir.), cert. denied,
498 U.S. 998,
111 S. Ct. 556,
112 L. Ed.2d 563 (1990), Field v.
Haddonfield Bd. of Educ.,
769 F. Supp. 1313 (D.N.J. 1991). The
right of recovery of fees belongs to the parents who are the
"prevailing parties."
In determining the applicability of IDEA, we must first
decide whether plaintiff's participation in the OAL action as
respondent defending against a claim for tuition implicates IDEA.
In Roxbury Tp. Bd. of Educ. v. West Milford Bd. of Educ.,
283 N.J. Super. 505 (App. Div. 1995), certif. denied,
143 N.J. 325 (1996), we considered whether a "due process" action by a
parent involving the emergent relief authority of the Department
of Education to compel a school district to accept responsibility
for an autistic child's education fell within the scope of IDEA,
where the ultimate dispute was between competing school boards.
Emergent relief was necessary because, unlike here, the school
refused to keep the child enrolled during the pendency of the
dispute. All parties agreed that the parents' emergent
application fell within the scope of IDEA. After the school the
child was attending agreed to maintain the child during the
dispute between school boards, the parents withdrew their
emergent application. As here, the issue then became a dispute
between school boards as to which was required to pay. We
affirmed the Law Division's award of attorneys' fees to the
parents pursuant to the fee-shifting statute. We noted, in
dictum, that "[e]ven if the only issue remaining before the ALJ
was the question of which board(s) was (were) financially
responsible, that issue by itself is sufficient to invoke the
jurisdiction of IDEA." Id. at 517 (footnote omitted), citing
Rabinowitz v. New Jersey State Bd. of Educ.,
550 F. Supp. 481
(D.N.J. 1982). But, here, as in Roxbury, more was in issue than
simply the child's domicile and which school board was
responsible.
By joining plaintiff as a respondent and seeking the relief
of assessment of tuition against her, East Brunswick placed
J.N.'s right to a free education in issue. East Brunswick claims
that instead of simply denying school attendance to J.N., as it
has the right to do under N.J.S.A. 18A:38-1, it petitioned the
Commissioner, permitted J.N. to continue to attend Lakeview and
continued to pay for the costs of his education. Thus, it claims
that it never denied the child a free public education during the
pendency of its petition. It had also joined Edison as a
respondent to its petition because, it asserts, that Edison would
have been responsible to pay for J.N.'s education in the event
the child was deemed to reside with his mother in Edison.
It is true that East Brunswick did not seek to avoid payment
of J.N.'s education during the pendency of the action;
nevertheless, it did choose to join plaintiff as a respondent and
assert a claim against her as a respondent. In these
circumstances, we conclude that East Brunswick's actions were
gratuitous. J.N.'s need for an education protected by IDEA was
never an issue and the right of J.N. to have a free education
paid for by one of the school boards should never have been an
issue. East Brunswick, by joining plaintiff, made it an issue.
Either East Brunswick or Edison was going to bear
responsibility for the cost of J.N.'s education. Plaintiff could
have been spared the necessity of defending a costly
administrative proceeding by a stipulation that one board or the
other would ultimately be responsible for the cost of education.
If East Brunswick understood J.N.'s needs and rights, it need
only have availed itself of the procedure we described in
Roxbury:
If West Milford desired to relieve J.K.'s
parents of the financial burden of
participating in the OAL hearing, it could
have stipulated that J.K.'s placement costs
would be paid, with the question of
allocation between the boards to await the
outcome of a contested case hearing before
the Commissioner, and it could have withdrawn
that portion of its . . . letter in which it
questioned the appropriateness of J.K.'s
residential placement. That was not done,
and, thus we find nothing in the record that
relieved the parents of the challenge
presented to them by West Milford's letter.
[Id. at 516-17.]
We conclude that by joining plaintiff as a defendant and
seeking tuition reimbursement where no question existed as to an
IDEA protected education, East Brunswick implicated IDEA and its
protections in this action.
East Brunswick suggests that implicating IDEA and ultimately awarding attorneys' fees when a school board contests domicile would "chill" a school board's willingness to legitimately challenge those who are not properly domiciled in a school district. The flaw in East Brunswick's argument is that such concerns are illusory, for there is no fee-shifting provision in N.J.S.A. 18A:38-1. Challenges to a student's domicile, absent IDEA, would not, under ordinary circumstances, expose a school board to fees. When one challenges a student protected by IDEA, Congress has made a policy decision that, indeed, does expose such contest to the potential of fee-shifting. Congress recognized that benefits and protections had to be afforded handicapped children and their parents to insure that these children receive a quality education. The fee-shifting provision reflects Congress' intent that parties, including school boards, exhibit a chariness in challenging the rights of those protected by the statute. The fee-shifting provision and the broad application of the scope of IDEA are consistent not only with the Congressional objectives when the statute was originally promulgated, but also to ensure its continued vitality as a guardian of educational benefits for handicapped children. As
noted in the legislative history appended to the most recent
amendments to IDEA:
In its 22 year life span, the
Individuals with Disabilities Education Act
has achieved many of the important goals it
sought to achieve. Children with
disabilities are for the most part well
served in America's public and private school
and are guaranteed the right in every State
and outlying area to a free appropriate
public education by law.
The IDEA has been a very successful law.
Prior to its implementation, approximately 1
million children with disabilities were
denied education. The number of children
with developmental disabilities in State
institutions has declined by close to 90
percent. The number of young adults with
disabilities enrolled in postsecondary
education has tripled, and the unemployment
rate for individuals with disabilities in
their twenties is almost half that of their
older counterparts.
[H.R. 95, 105th Cong., at 84 (1997).]
In order to achieve these objectives and meet these goals,
Congress was required to balance the competing interests of the
school board in protecting the rights of the taxpayers and the
interests of the parents of a disabled child in insuring that the
rights afforded by IDEA to both parents and children are
protected. Congress acted to insure that the nature, cost and
location of a handicapped child's education are comparable to
every other child in a local system. Congressional response by
enacting a fee-shifting provision chills neither party. To the
contrary, it insures that neither party will hesitate or be
economically constrained to advance the important interests to be
protected.
The Court in Garland adopted the former, "less demanding" test and noted that "the degree of the plaintiff's success in relation to the other goals of the lawsuit is a factor critical to the determination of the size of
a reasonable fee, not to eligibility for a
fee award at all." Garland, 489 U.S. at 790,
109 S. Ct. at 1492 (emphasis in
original)(citing Hensley v. Eckerhart,
461 U.S. 424, 103 S. Ct. 1933,
76 L. Ed.2d 40
(1983)).
In reversing the court of appeals' use
of the "central issue" test, the Court held
that "[t]he touchstone of the prevailing
party inquiry must be the material alteration
of the legal relationship of the parties in a
manner which Congress sought to promote in
the fee statute." Id., 489 U.S. at 792-93,
109 S. Ct. at 1493. In particular, "[i]f the
plaintiff has succeeded on 'any significant
issue in litigation which achieve[d] some of
the benefit the partes sought in bringing
suit,' the plaintiff has crossed the
threshold to a fee award of some kind." Id.,
489 U.S. at 791-92, 109 S. Ct. at 1493
(quoting Nadeau v. Helgemoe, 581 F.2d 275,
278-79 (1st Cir. 1978)). The Court reasoned
that this approach is more in line with
congressional intent, and that
the search for the 'central' and
'tangential' issues in the lawsuit,
or for the 'primary,' as opposed to
the 'secondary,' relief sought much
like the search for the golden
fleece, distracts the district
court from the primary purposes
behind [the fee shifting provision]
and is essentially unhelpful in
defining the term 'prevailing
party.'
Id., 489 U.S. at 791, 109 S. Ct. at 1493. In
sum, to be a prevailing party, the
plaintiff's success must be more than purely
technical or de minimis. Id., 489 U.S. at
792, 109 S. Ct. at 1493.
[Id. at 1320-21.]
A determination that a parent is a prevailing party has been applied where a parent defended a decision on appeal. Bernardsville Bd. of Educ. v. J.H., 42 F.3d 149 (3rd Cir. 1994)
(parents of disabled child who partially successfully defended
appeal by Board of Education of award of reimbursement expenses
were "prevailing parties" entitled to attorneys' fees); And see
Barlow-Gresham Union High Sch. Dist. No. 2 v. Mitchell,
940 F.2d 1280 (9th Cir. 1990) (parent is prevailing party where parent and
school board settled their dispute prior to the due process
hearing); But see Leslie "E" v. Bethlehem Central Sch. Dist.,
652 N.Y.S.2d 891 (N.Y. App. Div. 1997) (absent a proceeding,
petitioner cannot be deemed "prevailing party" entitled to fees).
Applying the Garland test to this case, we conclude that
plaintiff, as a respondent, succeeded on a "significant issue" in
the OAL litigation. We do not deem it significant that she
prevailed as a respondent rather than a party seeking relief. We
note Congress' careful use of "prevailing parties," rather than
"plaintiff" or other words of qualification. If East Brunswick
had prevailed as against plaintiff, J.N.'s federal and state
right to a "free education" would have been impaired. We
reiterate what we observed earlier. Plaintiff's involuntary
involvement in the OAL proceeding was gratuitous; there was no
legitimate reason for her being placed in a position requiring
her to defend. We conclude that Congress intended, and the
statute dictates, that East Brunswick should bear the cost of
such defense.
We reject East Brunswick's argument that awarding plaintiff
attorneys' fees equates to permitting a parent to compel a free
education in any district that a parent deems appropriate.
Nothing in our decision allowing attorneys' fees compels such a
conclusion. IDEA carries with it the obligation to educate
students residing within a district and within the jurisdiction
of a particular school board.
20 U.S.C.A.
§1415(a) (1986),
amended by
20 U.S.C.A.
§1415(a) (Supp. 1997); nothing we decide
here impacts on that statutory mandate.
We conclude that plaintiff falls within the definition of
"prevailing party" under the fee-shifting statute.
20 U.S.C.A.
§1415 (e)(4)(A) (1986), amended by
20 U.S.C.A.
§1415(i)(3)(A) (Supp. 1997) Congress intended to limit the
authority to award fees to the federal court.See footnote 5
We first acknowledge that proposition to which all parties
subscribe - - the administrative tribunal, i.e., the OAL is
without jurisdiction to award attorneys' fees under IDEA. Balsey
v. North Hunterdon Reg'l Sch. Dist. Bd. of Ed.,
117 N.J. 434, 446
(1990) (Commissioner of Education has no authority to award
attorneys' fees for violation of education laws). The parties
agree that a fee application may be brought in an "independent"
judicial action by a party who prevailed in an administrative
proceeding. See Barlow-Gresham Union High School Dist. No. 2 v.
Mitchell, supra, 940 F.
2d at 1284; Moore v. Dist. of Columbia,
supra,
907 F.2d 165, Field v. Haddonfield Bd. of Educ., supra,
769 F. Supp. at 1319-20.
In determining whether Congress intended to grant to the
federal courts the exclusive jurisdiction over an independent
action for attorneys' fees under IDEA, we are mindful of the
general rule that state and federal courts share concurrent
jurisdiction over cases arising from federal statutes unless
Congress determines otherwise. Bennun v. Bd. or Governors of
Rutgers,
413 F. Supp. 1274, 1279 (D.N.J. 1976) ("[S]tate courts
of general jurisdiction have the power to exercise jurisdiction
over cases arising under the Constitution, laws or treaties of
the United States unless this power is expressly taken away by
Congress."). Under our federal system,
the States possess sovereignty concurrent
with that of the Federal Government, subject
only to limitations imposed by the Supremacy
Clause. Under this system of dual
sovereignty, we have consistently held that
state courts have inherent authority, and are
thus presumptively competent, to adjudicate
claims arising under the laws of the United
States. . . . "[I]f exclusive jurisdiction be
neither express nor implied, the State courts
have concurrent jurisdiction whenever, by
their own constitution, they are competent to
take it."
[Tafflin v. Levitt,
493 U.S. 455, 458-59,
110 S. Ct. 792, 795,
107 L. Ed.2d 887, 895
(1990) (quoting Clafin v. Houseman,
93 U.S. 130, 136,
23 L. Ed. 833, 838 (1876)).]
In interpreting similar jurisdictional language in Title VII
(
42 U.S.C.A.
§2000E) that "[e]ach United States District Court .
. . shall have jurisdiction of actions brought under this
subchapter." [
42 U.S.C.A.
§2000E-5(f)(3)], the United States
Supreme Court stated: "[U]nlike a number of statutes in which
Congress unequivocally stated that the jurisdiction of the
federal courts is exclusive, Title VII contains no language that
expressly confines jurisdiction to federal courts or ousts state
courts of their presumptive jurisdiction. The omission of any
such provision is strong, and arguably sufficient, evidence that
Congress had no such intent." Yellow Freight System, Inc. v.
Donnelly,
494 U.S. 820, 823,
110 S. Ct. 1566, 1568-69,
108 L. Ed.2d 834, 839-40 (1990). "To give federal courts exclusive
jurisdiction over a federal cause of action, Congress must, in an
exercise of its powers under the Supremacy Clause, affirmatively
divest State courts of their presumptively concurrent
jurisdiction." Ibid. See, e.g., The Employee Retirement Income
Security Act (ERISA) of 1974
29 U.S.C.A.
§1132(e)(l) which
grants "exclusive jurisdiction of civil actions under this
subchapter;" The Public health and Welfare Act
42 U.S.C.A.
§6972(a) ("any action under paragraph (a)(1) of this subsection
shall be brought in a district court for the district in which
the alleged violation occurred"); Davis v. Sun Oil Co.,
953 F.
Supp. 890, 895 (S.D. Ohio 1996) (the use of the mandatory "shall"
in
42 U.S.C.A.
§6972(a) does not confer exclusive jurisdiction
on the federal court, disagreeing with a contrary holding in
Middlesex County Bd. of Chosen Freeholders v. New Jersey,
645 F.
Supp. 715, 719 (D.N.J. 1986) and the Racketeer Influenced and
Corrupt Organizations (RICO) Act
18 U.S.C.A.
§1964(c) granting
concurrent civil jurisdiction while retaining exclusive federal
jurisdiction for criminal violations.
18 U.S.C.A.
§3231); and
see the statutes cited in Tafflin v. Levitt,
493 U.S. 455, 471;
110 S. Ct. 792, 801;
107 L. Ed.2d 887, 902 (1990) (Scalia, J.,
concurring).
The plain language of
20 U.S.C.A.
§1415 (e)(4)(A) (1986),
amended by
20 U.S.C.A.
§1415(i)(3)(A) (Supp. 1997) ("The
district courts of the United States shall have jurisdiction of
actions brought under this subsection without regard to the
amount in controversy.") supports concurrent jurisdiction.
Additionally, the legislative history of IDEA both under its
present name and as the Education of the Handicapped Act (EHA),
warrants the same conclusion.See footnote 6
As enacted in 1975, IDEA contained no fee-shifting
provisions and, in fact,
20 U.S.C.A.
§1415 (e)(4)(A) (1986),
amended by
20 U.S.C.A.
§1415(i)(3)(A) (Supp. 1997), originally
20 U.S.C.A. § (e)(4) (1975), was simply a general jurisdiction
provision of the statute. While the district court, without
question, maintained jurisdiction over cases involving federal
questions, "the amount in controversy" was an issue requiring
congressional attention. Until 1980, there did not exist a
"minimum amount in controversy" requirement for district court
jurisdiction over federal question cases. See Historical and
Statutory Notes,
20 U.S.C.A.
§1415 (1986) As noted, the EHA
renamed IDEA in 1990, was enacted in 1975 and originally
contained the text of
20 U.S.C.A.
§1415(e)(4)(A) (1986), amended
by
20 U.S.C.A.
§1415(i)(3)(A) (Supp. 1997), as simply § (e)(4).
See Historical and Statutory Notes,
20 U.S.C.A.
§1415 (1986).
Subsequently, in 1986, the Act was amended, adding the fee-shifting statute, along with several other amendments dealing
with attorneys' fees, 20 U.S.C.A. § (e)(4)(C) to (G) (1986),
amended by
20 U.S.C.A.
§1415(i)(3)(C) to (G) (Supp. 1997), and
redesignating the jurisdictional provision from "(e)(4)" to
"(e)(4)(A)." Ibid. Thus, at the time IDEA was enacted, "(e)(4)"
eliminated any "minimum amount in controversy" issue as a
condition precedent to the exercise of jurisdiction by the
federal courts over IDEA cases. This jurisdictional provision
long pre-dated any congressional action regarding fee-shifting.See footnote 7
An interpretation limiting jurisdiction of the fee-shifting
provisions to the federal courts makes little practical sense.
Under such analysis, a litigant exercising his or her rights
under
20 U.S.C.A.
§1415 (e)(2) (1986), amended by
20 U.S.C.A.
§1415(i)(2)(A) (Supp. 1997) and prosecuting a successful action in
the state court would be required to commence an independent and
separate action in a federal court under the fee-shifting statute
simply to secure reasonable attorneys' fees for successfully
prosecuting the state court action. Nothing in the language of
the statute, legislative history or common sense compels such a
result.See footnote 8
To the extent that Zipperer v. School Bd. of Seminole
County, Fla.,
111 F.3d 847, 851-52 (11th Cir. 1997); J.D. v.
Essex Caledonia Supervisory Union,
943 F. Supp. 387, 390 (D. Vt.
1996); and Curtis K. v. Sioux City Community Sch. Dist.,
895 F.
Supp. 1197, 1210, 1217 (N.D. Iowa 1995) hold that the federal
courts have "exclusive" jurisdiction over an award of attorneys'
fees, we respectfully disagree. We consider the flaw in the
reasoning leading to such holding to be a misreading of the
relationship of jurisdictional provisions - 20 U.S.C.A. §
(e)(4)(A) (1986), amended by
20 U.S.C.A.
§1415(i)(3)(A) (Supp.
1997) and the fee-shifting statute. As we noted earlier, 20
U.S.C.A. § (e)(4) (1975), amended by
20 U.S.C.A.
§1415(e)(4)(A)
(1986), amended by
20 U.S.C.A.
§1415(i)(3)(B) (Supp. 1997),
predates the 1986 amendment to the statute creating the fee-shifting provision. At the time of the enactment of the
jurisdiction provision, Congress could not have intended its
application to a not yet adopted fee-shifting statute.
Additionally, the language in the fee-shifting statute,
"[i]n any action or proceeding brought under this subsection"
refers to an action or proceeding brought pursuant to 20 U.S.C.A.
§ 1415 (e). This is the only "action or proceeding" in which a
court is involved.See footnote 9 Thus, during the court "action or
proceeding" contemplated by
20 U.S.C.A.
§1415 (e) (1986),
amended by
20 U.S.C.A.
§1415(i)(2)(A) (Supp. 1997) (an action
which is cognizable in either state or federal court), a court
after a determination of the rights of the parties and an
adjudication of the appeal from the proceedings may award
attorneys' fees as part of that action or proceeding. See,
e.g., Roxbury Tp. Bd. of Educ. v. West Milford Bd. of Educ.,
supra. To conclude otherwise would negate any significance to
the phrase "in any action or proceeding" (emphasis added). See
R. 1:4-8(d) authorizing the award of fees for frivolous actions
which mandates that the issue be raised "in the action."
The result should be no different where, as here, a
litigant seeks to enforce his or her rights under the fee-shifting statute, and no "action or proceeding" is pending thus
empowering the trial judge in the 20 U.S.C.A § 1415(e)(2)
(1986), amended by
20 U.S.C.A.
§1415(i)(2)(A) (Supp. 1997)
action from first determining the respective rights of the
parties and then awarding attorneys' fees pursuant to the fee-shifting statute. Judicial economy and efficiency demand no
less.
We conclude that the state court shares concurrent
jurisdiction with the federal court in considering an application
for attorneys' fees under the fee-shifting statute. We further
conclude that a prevailing party under this section may maintain
in an independent action in the state court to enforce a right to
attorneys' fees incurred in the successful defense of
administrative proceedings.
"borrow" and apply the most analogous local time limitation.See footnote 10
Zipperer v. School Bd. of Seminole County, Fla., supra, 111 F.
3d
at 851 (applying a four-year Florida statute of limitations
period). And see JSK v. Hendry County Sch. Bd.,
941 F.2d 1563,
1570 n.1 (11th Cir. 1991) (the Supreme Court has held "that when
Congress has failed to provide a statute of limitations for a
federal cause of action, a court `borrows' or `absorbs' the local
time limitation most analogous to the case at hand," quoting
Lampf, Pleva, Lipkind, Prupis & Petigrow v. Gilbertson,
501 U.S. 350, 355,
111 S. Ct. 2773, 2778,
115 L. Ed.2d 321, 331 (1991)).
Where the state statute is inconsistent with the policies
underlying the federal statute, the state limitations period will
be rejected. Zipperer v. School Bd. of Seminole County, Fla.,
supra, 111 F.
3d at 850. In Zipperer, the court rejected the
federal thirty-day limitations period applicable to appeals from
federal administrative hearings. Id. at 850-851.
Two lines of cases appear to represent the divergent views
regarding the issue of the appropriate limitation periods. The
first represented by Zipperer v. School Bd. of Seminole County,
Fla., supra; J. B. v. Essex-Caledonia Supervisory Union, supra;
and Curtis K. v. Sioux City Community Sch. Dist., supra consider
an application for fees under the fee-shifting statute to be an
independent action and thus apply limitation provisions relevant
to separate causes of action. For example, Zipperer applies
Florida's four-year general statute of limitations, Fla. Stat. ch
95.11(3)(f); Curtis K. applies either the general five-year
statute, Iowa Code § 614.1(4) or the two-year personal injury
statute, Iowa Code § 614.1(2); while J. B. concludes that
Vermont's six-year "catch-all" statute, 12 V.S.A. § 511 is
applicable. The second line of cases represented by Powers v.
Indiana Dep't. of Educ.,
61 F. 3d 552 (7th Cir. 1995) concludes
that the attorney fee application is ancillary to the appeal
under
20 U.S.C.A.
§1415(e)(2) (1986), amended by
20 U.S.C.A.
§1415 (i)(2)(A) (Supp. 1997) and, as such, has adopted shorter
limitation periods consistent with appeals from administrative
agencies.See footnote 11 Neither New Jersey courts nor the Third Circuit
have identified a limitation period for actions for fees brought
pursuant to the fee-shifting statute.
Attorneys' fees may be awarded when provided for by rule or
statute. R. 4:42-9. Common to all of these applications is the
presence of an underlying action and the use of motion practice
allowing for, in most cases, a summary adjudication of the fee
issues within a short period of time. The action for fees, in
the present factual context, is a new and independent action.
Too short a period of time fails to reflect the realities of the
practice of law and, while we ascribe to a policy of finality for
litigations, no interest is served by requiring the filing of an
action within such an abbreviated time period. To require the
filing of such an action within thirty days is impractical,
unfair and, most important, is inconsistent with the intent of
IDEA.
[T]he short statutes of limitations
associated with appeals of administrative
procedures, while appropriate when a child's
Individualized Education Plan is at issue in
a substantive appeal of an administrative
determination, are too short to vindicate the
underlying federal policies associated with
the fee-claims provisions of the IDEA. See,
e.g., J.B. [By and Through C.B. v. Essex-Caledonia Supervisory Union,
943 F. Supp. 387, 391 (D.Vt. 1996)] ("Congressional policy
favors the protection of the educational
rights of the [disabled]. A short statute of
limitations in attorneys' fee claims would
frustrate that policy.")
[Zipperer v. School Bd. of Seminole County,
Fla., supra, 111 F.
3d at 851.]
New Jersey maintains a number of codified limitation periods, e.g., a one-year limitation period for libel and slander cases N.J.S.A. 2A:14-3; a two-year period for personal injury
claims N.J.S.A. 2A:14-2 and a six-year provision for contract and
other claims N.J.S.A. 2A:14-1. None of these limitation periods
are appropriate for an independent action for attorneys' fees
which is ancillary to an administrative proceeding.
Additionally, we recognize New Jersey's strong policy of
fostering and encouraging finality in litigated proceedings. At
the other extreme, we recently interpreted our frivolous
litigation statute and rule to impose a ten-day limitation period
on applications for attorneys' fees in statutory "frivolous
litigation" matters, N.J.S.A. 2A:15-59.l. Czura v. Siegel,
296 N.J. Super. 187, 190 (App. Div. 1997). In addition, both the
statute and our recently amended court rule, R. 1:4-8, require
that the fee application be brought "in the action" itself. R.
1:4-8(b)(2). We recognize the various federal courts that have
adopted a thirty-day limitation period, as we previously noted.
Ten or thirty-day limitation periods, in our view, present too
narrow a window of time to commence a new action especially when
at the same time one is attempting to absorb and counsel
litigants regarding a decision of the Commissioner of Education
which may or may not require other action or consideration. Our
research has failed to disclose or identify an appropriate local
New Jersey limitation of the rights of the parties to secure
relief under the fee-shifting statute.
We prefer a more flexible approach. The Third Circuit
provides persuasive guidance in Bernardsville Bd. of Educ. v.
J.H.,
42 F.3d 149 (3rd Cir. 1994), where the court addressed the
limitation period for an action by parents seeking tuition and
expense reimbursement and other relief under IDEA. The action
was commenced two years after the child had been withdrawn from
an inadequate educational facility. The court rejected the
ninety-day limitation period for challenging a child's Individual
Educational Plan and adopted a "reasonable time" standard as a
limitations period for commencement of such an action. "The fact
that here the regulations do not specify a time limitation within
which to bring a due process hearing, as well as the very nature
and social significance of the education of children with
disabilities incline us to equitable considerations." Id. at
157. The court concluded that a two-year time delay was
excessive commenting that even one year was also excessive in
bringing the reimbursement action.
We conclude that the adoption of a "reasonable time" rule
for the institution of independent actions for attorneys' fees
where there is no underlying action pending or brought pursuant
to
20 U.S.C.A. 1415(b) (1986), amended by
20 U.S.C.A.
§1415 (f)
(Supp. 1997) appropriately harmonizes competing policy
considerations. It provides a standard which allows independent
actions to proceed forward and protects the rights of the parties
under IDEA while at the same time precluding the extension of
litigation over too long a period of time. We join in the Third
Circuit's view that an action brought in excess of one year
probably does not meet the "reasonable time" standard. No
interest is served by delaying the adjudication of recovery of
attorneys' fees. The interests of the litigants, counsel and the
public agency involved would be well-served by an expeditious
resolution of these disputes. We think such an extended period
is inconsistent with the strong policy of finality of
litigation.See footnote 12
In the present case, the complaint for relief was filed on
May 1, 1997, approximately four and one-half months after the
agency decision.
Applying the "reasonable time" standard to the matter before
us, we conclude that a delay of four or five months is within the
standard, and plaintiff is not barred from pursuing her course of
action under the Act.
The judgment of the Law Division awarding attorneys' fees
pursuant to the fee-shifting statute is affirmed.
Footnote: 1Ironically, J.N. is enrolled in the Lakeview School located in Edison, but his domicile remains East Brunswick. Footnote: 2The parties have stipulated that the amount of the fees and nature of services were reasonable and necessary. Footnote: 3Neither the Administrative Law Judge nor the Commissioner reached this issue. "Since I have concluded that the Brunswick [sic] Board is responsible for the education of J.N. pursuant to N.J.S.A. 18A:38-l(b)(1), it is not necessary for me to consider the tuition issue or whether IDEA is applicable in this matter." 96 N.J.A.R 2d (Edu) 285 (1995). "The Commissioner further concurs with the A.L.J. that . . . it is not necessary to
consider the tuition issue or whether the [IDEA] is applicable in this matter." Ibid. Footnote: 4The fee-shifting provision, 20 U.S.C.A. §1415(e)(4)(B) (1986) was amended and redesignated as 20 U.S.C.A. §
1415(i)(3)(B) (Supp. 1997). The post-amendment provision
substituted the phrase "parents of a child with a disability" for
the prior phrase "parents or guardian of a handicapped child or
youth." For the purposes of this appeal, we discern no
distinguishable difference as J.N.'s "disability" or "handicap"
is not in dispute.
Footnote: 5
20 U.S.C.A.
§1415(e)(2) (1986), amended by
20 U.S.C.A.
§1415(i)(2)(A) (Supp. 1997) provides, in part:
Any party aggrieved by the findings and
decision made under subsection (b) of this
section . . . and any party aggrieved by the
findings and decision under subsection (c) of
this section, shall have the right to bring a
civil action with respect to the complaint
presented pursuant to this section, which
action may be brought in any State court of
competent jurisdiction or in a district court
of the United States without regard to the
amount in controversy.
Footnote: 6For ease of references, both EHA and IDEA will be referred
to as the IDEA.
Footnote: 7
20 U.S.C.A.
§1415 was amended in 1997, including
amendments involving fee-shifting. Historical and Statutory
Notes,
20 U.S.C.A.
§1415 (1986). The amendments are not
relevant to our consideration of the issue before us.
Footnote: 8We note that such a suggested result is inconsistent with
New Jersey's strong policy commitment to the "Entire Controversy
Doctrine" requiring resolution of all issues in a single
litigation. Cogdell v. Hospital Center at Orange,
116 N.J. 7
(1989). Not only have the federal courts recognized the doctrine
as part of the substantive law of this State, Rycoline Products, Inc. v. C & W Unlimited, 109 F.3d 883 (3d. Cir. 1997), but in an action brought pursuant to 20 U.S.C.A. §1415 (e)(2) (1986), amended by 20 U.S.C.A. §1415(i)(2)(A) (Supp. 1997), the District Court held that the Entire Controversy Doctrine was applicable to a proceeding brought pursuant to 20 U.S.C.A. § 1415 (b) (1986), amended by 20 U.S.C.A. §1415(b), § 1415(e), § 1415 (f) (Supp. 1997). D. K. v. Roseland Bd. of Educ., 903 F. Supp. 797 (D.N.J. 1995). Footnote: 9The proceedings under 20 U.S.C.A. §1415(a) through (d) (1986), amended by 20 U.S.C.A. §1415(a) through (g) (Supp. 1997) are administrative in nature and do not involve court proceedings. Footnote: 10The enactment of the Uniform Statute of Limitations on Federal Claims, 28 U.S.C.A. §1658 (1990), by its terms, is not retroactively applied to IDEA. ("Except as otherwise provided by law, a civil action arising under an Act of Congress enacted after the date of the enactment of this section may not be commenced later than 4 years after the cause of action accrues."). Footnote: 11See, e.g., Amann v. Town of Stow, 991 F.2d 929 (1st Cir. 1993)(applying a thirty-day period for appeals of administrative decisions); Spiegler v. District of Columbia, 866 F.2d 461 (D.C. Cir. 1989)(same); Adler v. Education Dept., 760 F.2d 454 (2d Cir. 1985)(applying a 120-day statutory limitations period for review of administrative decisions regarding children with disabilities); Department of Educ. v. Carl D., 695 F.2d 1154 (9th Cir. 1983)(applying a thirty-day period for appeals of administrative decisions). The Seventh Circuit has ruled on the applicable statute of limitations for suits brought for attorneys' fees under the IDEA. See Reed v. Mokena Sch. Dist. No. 159, 41 F.3d 1153 (7th Cir. 1994)(applying a 120-day limitations period for review of an administrative decision under the Illinois School Code in a case solely for attorneys' fees); Dell v. Board of Educ., 32 F.3d 1053 (7th Cir. 1994)(applying the same Illinois statute in a case involving both educational expenses and attorneys' fees). Footnote: 12Oberti v. Board of Educ. of Clementon cited by defendant is an unreported Federal District Court opinion (Docket No. 91-2818, U. S. District Ct. decided July 17, 1995), suggesting that a thirty-day period applies. Oberti did not involve an independent action for attorney's fees but concerned an application for fees filed 2 and one-half years after judgment. The reasoning in Oberti is consistent with our holding here today and in Czura v. Siegel, supra.