State reaches $10M settlement in special education lawsuit

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HONOLULU — The state has agreed to pay $10.3 million to settle a class-action lawsuit over a law that cut off public education for special-needs students at age 20, in contrast to federal law.

Parents and legal guardians and the Hawaii Disability Rights Center filed the lawsuit in reaction to the 2010 state law.

A federal appeals court later ruled that the state law violated the federal Individuals With Disabilities Education Act, which entitles disabled students to free appropriate public education until they turn 22, the Honolulu Star-Advertiser reported Friday.

The settlement will pay for educational and related services the 495 students who joined the class-action lawsuit should have received and reimburse their families for private services they paid for out of their own pockets.

The state Department of Education has deposited $8.8 million into the settlement fund and is awaiting Gov. David Ige’s approval to take $1.5 million from its special-education and student support budget for the rest.

A portion of the settlement money will be used to cover attorney fees, administrative support for the settlement fund’s administrator and other costs.

The $8.2 million that remains is currently available. The plaintiffs have until December 2020 to spend down the money.

Students can receive up to $20,000, according to the terms of the settlement.

Meredith Miller of the Honolulu law firm Alston Hunt Floyd & Miller, who was one of the lawyers who represented the plaintiffs, said they can use the funds to pay for occupational services and therapy, adaptive equipment, GED support, community college classes and job and independent life skills training and education.

Checks will be given directly to the providers of the qualifying services, Miller said.

To receive reimbursement, parents and guardians must present supporting documentation for services that were already provided and paid for, Miller said.