SAI Report - September 2001

Articles

A little bit about a number of things...
Guidance Counselor Liability for "Negligent Misrepresentation"
IPERS Preretirement Death Benefits
Sunshine Advisory: A Bulleting on Iowa Open Meetings and Public Records Laws




A little bit about a number of things...
by Dr. Troyce Fisher, SAI Executive Director

First, and most important, as we get in the swing of things for a new school year, the SAI staff would like to thank each and every one of you for the work you do for kids, day in and day out. Your willingness to lead and to go to the wall for all students and the adults who serve them is an inspiration. We feel very fortunate to work for you.
You'll notice a new format in our newsletters this year. We're hoping to spotlight members' articles, opinions and questions, and to use the SAI Report as a way to highlight best practices and keep members informed of current district, state, and national happenings; research, and issues and trends in linking leadership and learning. You'll also see lots of connections to the new Iowa Standards for School Leaders (ISSL) and follow-up to ideas presented at the August conference.
Last spring your Executive Committee spent a considerable amount of time rethinking SAI's vision and mission in light of new realities of accountability, administrator shortages, legislative initiatives, and expectations tied to the new teacher compensation law. You'll find both the vision and mission reprinted below, as approved by the Rep Council at their August meeting. I think they are both dynamic statements about your professional association's priorities.
Current political realities will also demand a different level of involvement in our legislative process from all of us. We're instituting a "feedback loop" between the newly formed legislative and IPERS committees, Rep Council and you, the members. A portion of the fall district meetings will be devoted to inviting you to give your legislative committee feedback on its initial proposals. Your district officers will bring all of your input back to the Rep Council meeting in November for further refinement into our legislative platform. Please plan to attend these district meetings - we need your ideas.
As you know by now, we had an overwhelmingly positive response to our request for your involvement in a variety of SAI committees. Over 260 members will give the staff guidance on our programming. We're gratified by the level of professional dedication this represents and excited about the possibilities for this next year and beyond.
At the annual meeting held last month, SAI members were presented with an initial list of goals for 2001-2002 in five different categories: Enhancing Our Skills As Leaders of Learning; Recruiting and Retaining the Best and the Brightest into School Administration; Advocating for Our Members; Collaborating with a Variety of Educational Entities; and Managing an Efficient Association. The Executive Committee will take the input provided at the annual meeting and refine the goals, which will then be distributed to all of the members.
Finally, this bit of leadership advice from Mark Twain: "Go out and do good. It will gratify most people and astonish the rest!"

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Guidance Counselor Liability for "Negligent Misrepresentation"
by Kathy Lee Collins, J.D., SAI Director of Legal Services

Uh-oh. Another way we can be sued (successfully). The Iowa Supreme Court decided a case this past spring that is sure to cause your guidance counselors some concern. Here's what happened:
Bruce Sain, a Cedar Rapids Jefferson graduate, sued the school district and his guidance counselor in 1999. Sain sued his district for negligence and sued the guidance counselor for negligent misrepresentation. The school's attorney filed a motion which, if granted, would do away with the need for a trial and constitute a decision in the district's favor. The trial court judge granted the district's motion as to both counts of the lawsuit, and the former student appealed to the Iowa Supreme Court.
In April, our highest state court held that the trial judge was correct in throwing out the count against the district, but that the suit against the guidance counselor should go forward to trial. This case thus stands for the proposition that guidance counselors can be sued (successfully) if they give bad or inaccurate advice that the student then relies on to his or her financial detriment. Knowing the facts of the case and prior Iowa case law helps us understand what Sain v. Cedar Rapids Community School District means.
Sain played basketball for Jefferson High School and hoped for an athletic scholarship to a Division I college or university. The NCAA (National Collegiate Athletic Association, which governs college athletics) has rules for colleges and universities requiring that certain academic standards be applied to freshmen on scholarship. In order to qualify for a scholarship, student-athletes must take and pass a specific number of core courses in high school. All high schools must submit their course descriptions to the NCAA's Clearinghouse and update their curricular list when a new core course is added to the curriculum (or when an old one is changed, I assume).
C.R. Jefferson is on the trimester system. Bruce apparently needed three English courses his senior year to meet his NCAA English core requirements. He took and passed one English course first trimester, then started another but wanted out after a short period of time. He went to his guidance counselor, Larry Bowen, who suggested that Bruce take "Technical Communications," a new course that had just been added to the curriculum. The course was not on the list of core English courses submitted to the NCAA the previous spring because it wasn't then fully developed.
The Supreme Court decision states at this point that Bruce claims his counselor told him the course had been approved for NCAA requirements. However, the counselor claims no such conversation took place. Because the case was dismissed before a trial was held, the Supreme Court was required (by court rules) to assume, temporarily, that Bruce is right. We will find out who the jury believes on this point if and when the case goes to trial.
Bruce took the Tech. Communications course and passed it and another in the third trimester, then accepted an athletic scholarship offer from the University of Northern Illinois ["UNI"]. He graduated from Jefferson and was then informed by the NCAA that he had not met core English requirements because "Technical Communications" had not been submitted to the Clearinghouse for approval before he took it. Thus, he couldn't play basketball on scholarship his freshman year. Both Bruce and Jefferson High School asked the NCAA to rethink its decision but got nowhere.
Sain claims that he lost his five-year athletic scholarship with Northern Illinois. The school district disputes this fact. But if he's right, he lost five years of out-of-state tuition probably valued around $50,000. That's important.
The district (trial) court dismissed both counts of the lawsuit believing that they constituted allegations of educational malpractice. "Malpractice" is just a fancy word for the negligence of a professional, and although you can sue doctors, lawyers, architects and engineers for malpractice, a 1986 Iowa Supreme Court decision pretty much established that public school employees and districts in Iowa can't be sued for educational malpractice. It's against public policy. (I'd explain that further, but it doesn't matter. Suffice it to say, that was a great decision for our team.)
On Sain's appeal of the dismissal of his lawsuit, the Iowa Supreme Court agreed with the trial court judge that the case against the school district for negligence (in failing to notify the NCAA of the new course and/or failure to get the Technical Communications course approved by the NCAA Clearinghouse prior to recommending it to student athletes who may need it to meet NCAA requirements) should be thrown out because it is clearly involves an allegation of educational malpractice. That is, if the school district made a mistake, was "negligent" in legal terms, it happened in the routine course of its normal academic, educational day-to-day operations, and thus, would be a claim of educational malpractice. The school district won that issue and, thus, there will be no trial against the district.
However, with respect to the claim against the guidance counselor, the Court changed direction. They said, essentially, IF it's true that Mr. Bowen told Bruce Sain that the course was NCAA approved AND he hadn't checked to make sure, that form of negligence is more "business related" than "academic," and thus doesn't fit in with the reasons the Court listed back in '86 for not allowing educational malpractice suits. The Court said when a guidance counselor is in the business of giving advice, and a student relies on that advice, and the advice costs the student a significant amount of money (such as a 5-year scholarship), that kind of lawsuit doesn't fall under "educational malpractice." Rather, the Court said, it's a classic example of "negligent misrepresentation."
It is of utmost importance to point out two things that keep this from being as scary a decision for counselors as one might think. First, Mr. Bowen (and any public school guidance counselor sued in the future for negligent misrepresentation) is protected from personal liability by the Iowa Municipal Tort Claims Act. That's a state law that requires school districts and boards to "defend, indemnify, and hold harmless" any employee who is named in a civil suit for an act or omission arising out of the employee's job. This translates into an obligation on the part of a school district to provide an attorney (the district's insurance company generally does this) to "defend" the employee; pay any damages that are assessed against the employee ("indemnify" him or her); and "hold him or her harmless" for the "oops" that caused the lawsuit, which means they can't fire the employee because of the suit. Be aware that they can fire the employee for intentional acts because this statute protects employees only from negligence types of suits. "Willful or wanton acts" on the employee's part are excluded from this protection because they're not "negligent" (accidental); they're purposeful or intentional. Also note that the board's obligation doesn't extend if the employee is sued in the criminal arena, only if the suit is civil in nature.
Second, the insurance company that covers most if not all Iowa school districts for tort liability says that counselors sued for negligent misrepresentation are covered by the district's general liability coverage; no separate "rider" or coverage is required for them.
There are always folks I call "Chicken Littles" who come out of the woodwork after a somewhat surprising decision like this one, declaring that this is the worst thing in the world that could happen to schools. ("The sky is falling!") Even the two judges on the Iowa Supreme Court who dissented in Sain seem to be predicting that potential "floodgates of litigation" will now be opened up. Or worse, that guidance counselors will simply begin refusing to do their jobs out of fear of being (successfully) sued. That may be a knee-jerk reaction by some, but we're talking about professionals here. I cannot imagine any of the counselors with whom I've worked over the years telling a student, "I don't know. Go find out yourself if this course has been approved for NCAA Prop. 48!"
But I do agree with the dissent that the ability for students to sue their counselors successfully isn't limited to students who get bad advice regarding athletic scholarships. It would apply equally to "all students, whether talented in music or debate or academics." I can foresee a number of variations on these facts, such as telling a student she only needs three years of foreign language to be accepted into Harvard when in fact she needs four.
We must not forget that there is one swift and sure way to change this decision in Iowa, and that is for the legislature to pass a law next session granting counselors immunity from suits for negligent misrepresentation. Then our counselors would only have to really be on their toes for the next 11 months! I'll keep you posted.

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IPERS Preretirement Death Benefits
By Kelly Lovell, Deputy General Counsel, IPERS

The 2000 Second Session of the Iowa General Assembly made many significant amendments to Iowa Code chapter 97B, "Iowa Public Employees' Retirement System" (IPERS). One of the more significant changes relates to preretirement death benefits.
Previously, IPERS only provided a lump sum preretirement death benefit, based on a formula. The formula was the sum of two amounts. The first amount was the member's accumulated contributions and interest. The second amount was the member's highest year of wages multiplied by a fraction. The numerator of the fraction was the member's years of service and, for regular class members, the denominator was 30.
Many members were extremely dissatisfied with this formula, because of the size of the lump sum amount it produced, and because a beneficiary could not receive a lifetime annuity. The 2000 legislation, amending Iowa Code section 97B.52(1), made changes in both areas.
First, the new preretirement death benefit formula provides that the lump sum amount now is either the old formula amount or the actuarial present value of the member's accrued benefit as of the date of death, whichever is greater. (In some cases, the old formula, particularly for younger members, will provide the better lump sum amount.)
Second, regardless of the method used to determine the new lump sum amount, that amount may be converted to a lifetime monthly benefit by sole beneficiaries, if a timely election is received.
As revised, IPERS provides a preretirement death benefit to beneficiaries of members who (1) have an IPERS account, and (2) die before retiring or taking a refund.* Eligibility, the amount of the death benefit, and the form in which it can be paid, will depend on the date of the death, the date the claim is made, and certain other factors. One of the most important, and complex, things to understand about the new death benefit is the distinction between "window period beneficiaries" and "post window period beneficiaries."
"Window period beneficiaries" are beneficiaries of members who died on or after January 1, 1999, but before Jan. 1, 2001. "Post-window period beneficiaries" are beneficiaries of members who died on or after Jan. 1, 2001.
The main difference between the two groups is that window period beneficiaries must claim their benefits by Dec. 31, 2001, or they will forfeit any right to the new preretirement death benefits. The claims period for post-window period beneficiaries is 1 year if they wish to receive an annuity, or 5 years for the lump sum. (Special rules may apply to surviving spouses permitting longer claims periods.)
The statutory change is somewhat unusual in that, even though a window period beneficiary previously was paid a lump sum preretirement death benefit under the old formula, that beneficiary can, if they make a timely claim, also profit from the statutory change.
For eligible beneficiaries who already received a lump sum preretirement death benefit payment, there are several options to consider. For example, they can receive a lump sum equal to the difference between the prior lump sum payment and the new lump sum amount, or sole beneficiaries can receive a lifetime annuity. The annuity can be based on the amount of the increase, or on the entire lump sum payable under the new formula. If they choose the latter, monthly annuity payment will be withheld until the prior lump sum payment is recovered.
The payment of the actuarial present value of the member's death, as a lump sum or an annuity, has relieved some of the prior pressure on members with health problems to retire early in order to preserve lifetime death benefits under one of the IPERS retirement options. However, it is very important for members (and beneficiaries) discussing retirement decisions with IPERS' staff to remember that the assumptions provided to and used by IPERS' staff in preparing estimates such as possible retirement dates, possible eligibility for Social Security disability, and so forth, make a big difference in the information provided. Each situation is unique, and each member should discuss his or her situation in detail with an IPERS retirement officer to understand their choices and to determine the best choice for them.
If you have any questions, please contact Jan Selzer at 515-281-0026, or the writer at 515-281-0089.
*Please note that, although increased monthly death benefit amounts or lump sums may be available under the option already selected by a reemployed retiree, the preretirement death benefits described in this article are not available to reemployed retirees.


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SUNSHINE ADVISORY
A Bulletin on Iowa Open Meetings and Public Records Laws
By Attorney General Tom Miller

Personally Examining Records - Giving a "Free Peek"

Do you know what obligations public offices have when a citizen asks to see a public record? Personal examination of records is just one of the ways citizens may have access to public records.
When a person visits a public office and asks to see a public record, several principles apply:
1. Every person has the right to personally examine public records at the physical location where the records are kept, unless a specific provision of law requires confidentiality or provides grounds to withhold the record from public scrutiny.
2. The office cannot charge a person to personally examine a public record while it is in the office's physical possession, unless a specific provision of law grants the office the right to charge a fee. The office may charge a person the actual cost for retrieving the record and for making any copies of the record that are requested - but not for personally examining the record.
3. If records are kept at a separate location, the public office may need to retrieve the record in order to make it available to the public for personal examination.
4. The right to personally examine public records does not extend to certain computer data bases or data processing software. Public offices are not required to provide direct access to their computers.
When public offices understand the right of every person to come to an office and personally examine public records, it helps assure that access to public records is provided in compliance with the law - and it helps forge a good relationship between public offices and the citizens they serve.
This is the first "Sunshine Advisory" issued by the Attorney General's Office. The Advisories are designed to give information on Iowa's public records and open meetings laws - our "Sunshine Laws." Local officials should obtain legal advice from their counsel, such as the city or county attorney. Citizens who have inquiries or complaints may call the Iowa Citizens' Aide/Ombudsman Office - toll-free at 888-IA-OMBUD (888-426-6283).
Iowa Attorney General's Office: Hoover Building, Des Moines, Iowa 50319.
Sunshine Advisories are a general resource for government officials and citizens. Local officials should obtain legal advice from their counsel, such as the city or county attorney.

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