Academy District 20 board votes 4–1 to join School District 49 v. Sullivan; attorneys outline costs and timing

The Academy School District 20 Board of Education voted 4–1 to join the litigation titled School District 49 v. Sullivan (Case No. 25‑cv‑1463) after hearing from outside counsel on likely costs, timeline and the practical protections federal litigation can provide.

Board members pressed outside attorneys and district finance staff for details before the vote. One attorney told the board the total plaintiff‑side cost for litigating a federal‑district‑court trial could be about $1,500,000 across participating districts; he said Academy District 20’s likely share under the draft engagement would be ‘‘under $300,000’’ and closer to ‘‘about $250,000’’ through trial, while the ‘‘immediate near term cost is on the order of probably $60,000 total’’ for the motion‑to‑dismiss phase.

Why it matters: joining the federal suit makes the district a named plaintiff and, counsel said, can prompt state or administrative bodies to defer handling similar complaints while the federal court addresses the controlling legal questions. Counsel emphasized joining does not legally bar other parties from filing complaints, but it usually produces practical deference from other forums while issues are litigated.

Key details and how the board decided • Cost estimates: Counsel provided a tiered forecast: roughly $60,000 in the near term for motion practice; a discovery phase that counsel estimated could total about $900,000 across the plaintiff group; a final trial ‘‘sprint’’ the firm estimated at $400,000–$600,000 across participants; and separate appellate estimates (roughly $250,000 at the Tenth Circuit and $45,000–$65,000 for a certiorari petition in a worst‑case collective scenario). Counsel warned these were ‘‘outer band’’ estimates and that the actual expense depends on discovery scope, expert needs and how defendants choose to defend.

• Participation and pro rata shares: Counsel described an expected participation model of about eight districts (four large, four small) yielding 12 ‘‘shares’’; under that model large districts pay two shares and small districts one, producing an approximate 16.67% share for a large district. Counsel said that estimate could fall to a $150,000–$200,000 range depending on participation and litigation dynamics.

• Deadline and amendment window: Counsel said a timely decision by the board was important to allow an amendment of the complaint before defendants’ response deadlines; they cited Federal Rule 15 as governing the right to amend without court leave and noted the defendants’ current deadline to respond was July 16 in counsel’s timeline.

• Funding: Deputy CFO Becky Allen said the district’s adopted 2025–26 budget does not include this expense and that the most likely funding source would be the district’s unassigned fund balance, projected at about $30,000,000. Using counsel’s participation assumptions and a $960,000 figure for the group next fiscal year, she calculated a pro rata share of about $160,000 for District 20 — approximately 0.5% of the unassigned fund balance and a small fraction of the district’s adopted budget. Allen said such a payment would be reflected in the midyear budget true‑up.

• CHASA fee risk: Board members raised language in CHASA’s bylaws (cited in the discussion as section 810.1) that could require members to pay CHASA attorney fees if CHASA were a defendant. Counsel said that obligation would be a separate contractual issue, that they had not seen CHASA invoke that clause yet, and that fee‑recovery for prevailing plaintiffs (under 42 U.S.C. § 1983) is a possible countervailing source of recovery if plaintiffs prevail.

The vote and next steps: An unidentified board member moved to join the litigation; Deputy CFO Becky Allen seconded. The roll‑call vote recorded Vice President Hans — Aye; Director Wilburn — Aye; Director Yanez — Nay; Director Payne — Aye; President Shandy — Aye. The motion passed 4–1. After the vote, the board adjourned.

What remains open: Counsel emphasized that cost estimates depend on future litigation decisions and who ultimately participates in the plaintiffs’ group; questions about whether CHASA (or other defendants) would shift fees remain unresolved and, counsel said, could affect net budgetary exposure. The board did not reallocate specific budgeted projects at the meeting and was told expected midyear budget adjustments would reflect any payments made before midyear.

Quotes from the meeting • Attorney Murray, describing group costs: "The overall cost of this litigation that we are estimating ... to the federal district court here in Colorado is $1,500,000. We think the likely cost to Academy District 20 as a large participant ... is going to be probably under $300,000 ... closer to about $250,000."

• Attorney Murray on near‑term needs: "The immediate near term cost is on the order of probably $60,000 total ... with about 15% of that ... through a motion to dismiss."

• Deputy CFO Becky Allen on district finances: "We're funded dead last in the state ... We do our budgeting very conservatively."

• On vote outcome: The board approved the motion to join School District 49 v. Sullivan, Case No. 25‑cv‑1463, by a 4–1 roll‑call vote.

The board took formal action to join the federal litigation; the district’s financial exposure will be monitored and reported in the district’s midyear budget review, and litigation counsel and district staff will proceed with the next procedural steps described in the meeting.