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Federal Court Rules Private School’s Nonprofit Status Leads to Title IX Coverage


crash_davis

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This may or may not be a big deal. I have no idea. But I figured you lawyerly types can discuss.

If it gets appealed to that level, will the SC review this case. And with the new courts hard-on for all things religious, what will they rule?

https://www.fisherphillips.com/news-insights/baltimore-federal-court-rules-private-schools-nonprofit-status-title-ix-coverage.html

In a decision that should put the nation’s private and independent school community on notice, a federal judge in Baltimore recently ruled that a school’s nonprofit status in and of itself constituted the receipt of federal financial assistance – which means that it is subject to Title IX requirements, among other things. For now, the July 21 decision only impacts schools in Maryland, and is almost certain to be appealed (and could even be blocked from going into effect during the appeal process). But this could be the beginning of a trend that could catch on elsewhere, meaning that all private tax-exempt schools should review this ruling and be on guard to adapt your policies and practices if necessary.

What Happened?

A group of former students sued Baltimore-based Concordia Preparatory School alleging sexual assault and harassment based on the alleged actions of other students dating back to 2016. The former students brought claims under Title IX of the Education Amendments of 1972 — commonly just known as Title IX – which prohibits discrimination on the basis of sex in any education program or activity.

The school asked the court to dismiss the lawsuit. It argued that it was not a direct recipient of federal financial assistance, which is a requirement for any school to be subject to Title IX. 

Judge Richard Bennett from the District of Maryland denied the school’s request and cleared the lawsuit to proceed. He concluded that the school’s tax-exempt status, in and of itself, constitutes “federal financial assistance” for the purpose of Title IX and other similar statutes. “The tax-exempt status of a private school subjects it to the same requirements of Title IX imposed on any educational institution,” Judge Bennett said. “The school cannot avail itself of federal tax exemption but not adhere to the mandates of Title IX.”

In his ruling, he acknowledged that neither the U.S. Supreme Court nor the federal appeals court overseeing his court had directly addressed this issue. But he did say that both courts have issued rulings that guided his decision:

He cited to SCOTUS cases where the Court ruled that an institution can be considered a recipient of federal assistance even if it did not directly apply for the aid.

He also cited to a key 1983 SCOTUS case that said “tax exemptions…are a form of subsidy that is administered through the tax system. A tax exemption has much the same effect as a cash grant to the organization of the amount of tax it would have to pay on its income.”

Finally, he pointed to another local federal district court that ruled that institutions receiving tax exemptions have a higher responsibility than others, and should not be encouraged to engage in activities “that are illegal or contrary to public policy.”

What Does it Mean for Private and Independent Schools?

Regardless of how unusual this decision may seem, you should not simply stick your head in the sand and ignore the ruling. After all, it does come from a federal district court and essentially has immediate effect. The school caught up in this lawsuit will have to live with the consequences of this ruling in the immediate litigation, defending itself against Title IX claims. And other schools in Maryland should be especially on guard for copycat litigation making these same arguments.

But there are some reasons to take this decision with a grain of salt. After all:

This decision is limited to just one jurisdiction. It directly impacts approximately 800 private schools in Maryland, about 2% of all nonprofit schools in the country.

Given this case could have such a profound impact, the school involved will no doubt appeal the ruling – and will likely have the backing of private school associations that will ensure the strongest arguments possible will be put forth.

The judge who issued the ruling admitted that his was the first such ruling in the country to go so far, which is a statement that usually sends alarm bells off for appeals court judges.

The decision runs contrary to the way that federal administrative agencies have operated for decades, regardless of which political party occupies the White House.

The judge involved in this case has had another high-profile ruling overturned on appeal. In 2007, he presided over a First Amendment case against the Westboro Baptist Church and made several controversial rulings that were eventually reversed by the U.S. Supreme Court.

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5 hours ago, crash_davis said:

The judge involved in this case has had another high-profile ruling overturned on appeal. In 2007, he presided over a First Amendment case against the Westboro Baptist Church and made several controversial rulings that were eventually reversed by the U.S. Supreme Court.

Well, I'm sure this is going to go smoothly!

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6 hours ago, Captainant said:

Seems like the christian school could have avoided all this hooplah if they just investigated and addressed the sexual violence happening on their campus. 

It was God's will. Who are they to Judge? Except for the girls, they were just asking for it.

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On 7/29/2022 at 2:04 AM, NeverMarryAStripper said:

The Supremes will rule that Title IX only applies only to private religious schools affiliated with a religion that is non-Christian or Christian, but non-Protestant

An aside, but the religious demographics of SCOTUS are an area that’s completely out of whack with the demographics of the nation.  Only Jackson and Gorsuch are Protestant and Gorsuch is an Episcopalian and so barely counts Protestant at all.  And Jackson replaced a Jewish justice and is the closet thing to a low-church or evangelical on the court. And of course no self-proclaimed “none” at all. 
 

https://news.gallup.com/opinion/polling-matters/391649/religion-supreme-court-justices.aspx

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