In W.P. v. Peninsula School Dist., published July 29, 2011, the Ninth Circuit Court of Appeals, sitting en banc, overruled previous Ninth Circuit cases interpreting the administrative-remedy exhaustion requirement set forth in 20 U.S.C. section 1415(l) of the Individuals with Disabilities Education Act. The Ninth Circuit previously interpreted the exhaustion requirement as jurisdictional, and determined whether it applied by considering whether the plaintiff's injury was caused by loss of rights protected by IDEA. In W.P., the court decided that the exhaustion requirement is not jurisdictional; it is an affirmative defense, which can be waived or forfeited if the defendant does not assert it soon enough.
It further rejected the injury-based analysis for determining which claims are subject to the exhaustion requirement. Since the statute requires exhaustion for relief that would have been available under the IDEA, the court limited exhaustion to prayers for relief that seek relief that would be available under the IDEA. The court identified three such prayers: When a plaintiff seeks IDEA relief or its functional equivalent (e.g., damages under the ADA for costs of private school education because the school does not accommodate a disability ); where a disabled student seeks prospective relief to alter an individual education plan or educational placement; and where the disabled student seeks to enforce rights that arise out of a failure to provide a free and appropriate public education, whether pled as an IDEA claim or any other claim.
Where a plaintiff seeks only damages, the court is not to speculate that the damages could go only to pay for remedies that the IDEA provides. Instead, if the measure of the plaintiff's damages is the cost of counseling, tutoring, or private schooling; if the student sues under the Equal Protection Clause for damages for failure to provide specialized programs for disabled students; or if the damages are to compensate for costs associated with altering a disabled student's educational placement. To the extent the money damages substitute for IDEA relief, exhaustion is required.
The court held that defendants should assert the failure to exhaust in a nondenominated Rule 12 motion to dismiss without prejudice. If the district court does not grant such a motion, and it later determines that the plaintiff should have exhausted administrative remedies, at trial the fact finder should be permittted to determine which remedies are unexhausted and available under the IDEA, and withhold them.