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COMMONWEALTH OF KENTUCKY

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FRANKLIN CIRCUIT COURT
CIVIL ACTION NO. 18-CI-______
DIVISION NO. ______

DONNA HURLEY, Individually and on


behalf of her minor children J.P. and B.P.,

and

TONYA MELTON, Individually and on


behalf of her minor daughter V.R.,

and

THE LOTTS CREEK


COMMUNITY SCHOOL, Inc. PLAINTIFFS

v.
COMPLAINT AND PETITION FOR
DECLARATORY RELIEF

STEPHEN L. PRUITT, in his official capacity as


Kentucky Commissioner of Education

Serve: Stephen Pruitt


300 Sower Boulevard, 5th Floor
Frankfort, Kentucky 40601

and

KENTUCKY DEPARTMENT OF EDUCATION

Serve: Andy Beshear, Attorney General


Office of the Attorney General
700 Capitol Avenue, Suite 118
Frankfort, Kentucky 40601-3449

KENTUCKY BOARD OF EDUCATION

Serve: Andy Beshear, Attorney General


Office of the Attorney General
700 Capitol Avenue, Suite 118
Frankfort, Kentucky 40601-3449
and

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KNOTT COUNTY BOARD OF EDUCATION

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1156 Hindman Bypass
Hindman, Kentucky 41822

Serve: Randy Combs, Board Chair


1156 Hindman Bypass
Hindman, Kentucky 41822 DEFENDANTS

*********************************

INTRODUCTION

This action arises under the provisions of the Kentucky Declaratory Judgment Act, KRS

418.040 et seq. and the administrative appeals provisions of KRS 13B.140. Plaintiffs are seeking

a declaration of rights regarding whether the Kentucky Commissioner of Education has authority

under KRS 156.010, 156.148, 156.210 or 162.060, to: 1) impose remediation standards for health

and safety concerns; 2) unilaterally withdraw the approval of a valid lease entered into between

Knott County Board of Education and the Lotts Creek Community School, Inc. to operate Cordia

School on its property; or 3) reassign the attendance boundaries and relocate children to

alternative facilities in Knott County. This action also seeks a declaration by this Court

regarding the sufficiency of due process, under Kentucky law, and whether the Knott County

Board of Education’s vote to close the Cordia School on January 23, 2018 was a violation of due

process and lacked substantial evidence in the record to support such decision.

An actual controversy exists between the parties in that the Commissioner’s Letters dated

December 12, 2017 and January 17, 2018 are arbitrary, capricious, and in excess of his statutory

authority as Commissioner. In those letters, Mr. Pruitt makes certain claims regarding the safety

of the Cordia School building, summarily demanding the closure of the school without any due

process to determine whether any alleged safety issues have been alleviated or mitigated by

LCCS. Relying on those arbitrary allegations, the Knott County Board of Education held a

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special meeting and voted to close the Cordia School, depriving the Plaintiffs of an opportunity

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to be heard and present defenses regarding the safety of the buildings on campus. The actions

taken by Commissioner Pruitt and the Knott County Board of Education are arbitrary, capricious,

and otherwise inconsistent with Kentucky law.

PARTIES

1. Plaintiffs, Donna Hurley and Tonya Melton, are residents of Knott County and have

minor children who attend the Cordia School located in Knott County, Kentucky.

2. Plaintiff, The Lotts Creek Community School, Inc. (hereinafter “Lotts Creek” or

“LCCS”), is a non-profit corporation that owns a school building known as the Cordia School in

Knott County, Kentucky. Lotts Creek is one of the last remaining settlement schools still

operating in the rural parts of Kentucky. The Cordia School was founded to provide the children

of Lotts Creek with access to education. Today, the Cordia School = provides K-12 education to

230 students.

3. Defendant, Stephen L. Pruitt is the Kentucky Commissioner of Education, which is the

chief executive of the Department of Education (hereinafter “KDE”). The Commissioner’s

authority within the KDE is set forth in KRS 156.010. In general, the Commissioner is tasked

with “administering, structuring, and organizing the department and its services” which includes

monitoring the management of school districts and implementing state laws and policies. See

KRS 156.010. The Commissioner’s duties as chief state school officer are set forth in KRS

156.148 which states that he shall, “execute under the direction of the state board the educational

policies, orders, directive, and administrative functions of the [Kentucky Board of Education].”

See KRS 156.148(3). His powers as Chief State School Officer are set forth in KRS 156.210.

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4. Defendant, Kentucky Department of Education, operates under KRS Chapter 156.

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The Commissioner of Education is the chief executive of the Department of Education, who is

responsible for administering, structuring, and organizing the department and its services

pursuant to KRS 156.010.

5. Defendant, Kentucky Board of Education, operates pursuant to KRS Chapter 156 and

is made up of twelve members from across the Commonwealth. The Kentucky Board of

Education is tasked with appointing the Commissioner of Education who serves at the pleasure

of the Board. The Kentucky Board of Education’s main responsibilities include developing and

adopting regulations that govern public school districts and directing the Kentucky Department

of Education.

6. Defendant, Knott County Board of Education is a body politic and has duties

consistent with KRS 160.160. The Board has five members: Randy Combs, Dennis Jacobs,

Gladys Epperson, Patricia Miller, and David Messer. The Board is tasked with general control

and management of the public schools in Knott County. The Board also has certain investigatory

powers under KRS 160.300 including the power to conduct investigations within their authority

to summon witnesses by subpoena and hear testimony in matters of a quasi-judicial nature.

7. Defendant, Kim King, is Superintendent of the Knott County School District, whose

duties are set forth in KRS 160.350. Superintendent King is the executive officer of the School

District, pursuant to KRS 160.370, and is responsible for carrying out policies and regulations

enacted by the Knott County Board of Education. Superintendent King also serves as a

professional advisor to the Board and makes recommendations to the Board on administrative

matters.

JURISDICTION AND VENUE

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8. KRS 13B.140 vests this court with jurisdiction to hear an appeal of a final agency

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action. Pursuant to KRS 13B.010(6), a final order “means the whole or part of the final

disposition of an administrative hearing, whenever made effective by an agency head, whether

affirmative, negative, injunctive, declaratory, agreed, or imperative in form.” Under the Federal

administrative rules, “The core question is whether the agency has completed its decision-

making process, and whether the result of that process is one that will directly affect the parties.”

Franklin v. Massachusetts, 505 U.S. 788, 797 (1992). It is clear that the Commissioner has made

a final decision and students are not to occupy the Cordia School building after February 2, 2018,

and that district students will reassigned “on or before” February 2, 2018. See January 17, 2018

Letter. The Commissioner’s letter constitutes final agency action which is subject to judicial

review.

9. KRS 13B.140(2) requires that a petition for judicial review be filed after the party has

exhausted all administrative remedies available within the agency. Plaintiffs submit that the

Commissioner’s January 17, 2018 letter constitutes final agency action as he has directed that

that Knott County District students cannot be occupants in the Cordia School building on or after

February 2, 2018. The Commissioner has likewise demanded that the attendance boundaries of

the Cordia School be amended an its students reassigned among Knott County’s other schools.

10. Venue is appropriate in this Court pursuant to KRS 452.430 because this is an action

against the Kentucky Board of Education. KRS 452.430 states that, “An Action against the

Kentucky Board of Education, of this state, must be brought in the county that includes the seat

of government.” Franklin Circuit Court is the appropriate venue. Venue is also proper under

KRS 13B.140(1).

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11. KRS 418.040 vests this court with jurisdiction over an action by plaintiffs seeking a

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declaration of rights, “either alone or with other relief,” where an actual controversy exists, and

this Court “may make a binding declaration of rights, whether or not consequential relief is or

could be asked.

12. An actual controversy exists between the parties regarding: 1) the Commissioner’s

authority to unilaterally withdraw a lease that the Department has already approved between

LCCS and the Knott County Board of Education; 2) the Commissioner’s authority to reassign the

attendance boundaries of the Cordia School; 3) the responsibilities and duties of the Knott

County Board of Education to maintain and repair the inside of the Facility pursuant to Section

6.1 of the signed lease with LCCS and who which party was responsible for some of the repairs

cited by the Commissioner in his January letter; and 4) the Commissioner’s authority to unduly

influence the Knott County School Board to make a decision to close the Cordia School without

adequate due process or opportunity to be heard.

13. Declaratory relief is appropriate in this case under KRS Chapter 418 since the

requested declaration of rights will terminate the uncertainty and controversy that exists, and is

squarely within the remedial purpose of KRS 418.040 to 418.090 announced in KRS 418.080. A

declaration of rights would afford “relief from uncertainty and insecurity with respect to rights,

duties and relations” between Kentucky Department of Education, Commissioner Pruitt, and

Knott County Board of Education with the Plaintiffs.

FACTS

14. Lotts Creek Community School (“LCCS”) owns and operates one of the most unique

schools in the Commonwealth. The Cordia School was founded to provide the children of Lotts

Creek with access to adequate education. The school is one of the last remaining settlement

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schools in eastern Kentucky and is likely the most remote public school in the Commonwealth.

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Its campus is nestled in the foothills of the Appalachian Mountains. It serves an extremely close-

knit community isolated from the rest of Knott County and has a longstanding history of helping

disadvantaged students. The Cordia School is unique in that it houses many out-of-state and

international students in dormitories on the school’s campus.

15. Lotts Creek and the Defendant, Knott County Board of Education, have in place a

valid contractual agreement allowing the LCCS to operate the Cordia School, a public school in

Knott County, Kentucky, on property owned by LCCS.

16. A lease was executed by LCCS and Knott County Board of Education and went into

effect on July 1, 2016 and contained an option to extend for the 2017-2018 school year, which

the parties exercised. The contractual agreement indicates that it must have prior approval of the

Kentucky Department of Education (hereinafter “Department”) and that the parties agree to lease

the facility and operate a public school “during the 2016-2017 school year and beyond.” See

Lease Agreement, Exhibit 1.

17. The lease agreement, under Section 8.3, may only be changed or revised with written

consent of both parties and approved by the Department of Education. Section 2.1 of the lease

sets forth the requirements for terminating the lease. The agreement is to remain in effect for the

full term and “ending upon the Board of LCCS giving notice of termination pursuant to Section

6.2 hereof, or the expiration of termination of the New Facility Lease, whichever is earlier.”

Section 2.1 of Exhibit 1. Written notice must be given to terminate the lease at the end of the

school year.

18. LCCS had a premises liability insurance policy in place issued by Lloyd’s London &

International Insurance Company of Hannover SE (“Lloyd’s of London”). When construction

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defects in certain roof trusses were discovered in July of 2017 at the Cordia School, LCCS filed a

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claim with their insurer. The insurer then cancelled the policy on July 8, 2017 when LCCS filed

a Civil Action in Knott Circuit Court1 against Lloyds of London. The outcome of that case is

still pending judicial review.

19. The insurance adjuster, Engle Martin, then contacted LCCS on September 5, 2017 and

stated that Lloyd’s London “is not in a position to either accept or reject coverage for this loss.”

See Exhibit 2. Lloyd’s of London refused to pay the claim and then cancelled the insurance

policy. Given the current conditions of portions of the building, finding a new insurance policy

has been difficult to secure. The Commissioner, in his first letter dated December 12, 2017,

argued that state law “mandates property insurance on all public school buildings owned by local

boards of education.” See Exhibit 3. LCCS owns the buildings and leases them to Knott

County School Board, so KRS 160.105 and 702 KAR 3:030 do not apply. Nonetheless, LCCS is

still trying to secure a new policy for the buildings.

20. A brief timeline of events is helpful for context. In July of 2017, structural issues with

the roof of the auditorium were first discovered and contractors and engineers were brought in

immediately to inspect the roof. Lloyds of London refused to pay the claim for the roof and then

cancelled the insurance policy. In August, a structural engineer who was approved by the KDE

inspected the roof and the remedial structural changes made by LCCS to the roof trusses. All

repairs were approved by the engineer, and the school was to remain open as long as the

auditorium was not used.

21. In October, 2017, inspectors from the Office of Educational Accountability came to

the school to inspect the premises and noted problems with the building not being properly

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Lotts Creek Community School v. Certain underwriters of Lloyds and London International
Insurance Company of Hanover, 17-CI-220 in Knott Circuit Court.
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cleaned. Under the terms of the lease, interior maintenance is the duty of the Knott County

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Board of Education. On December 11, 2017, an inspection was conducted for all fire sprinklers

and equipment at the school. See Exhibit 4. According to those inspection reports, there

appeared to be no issues with the fire system. Id. On December 15, 2017, the Knott County

Board Attorney contacted LCCS and instructed them to keep people out of the gym, to fix the

generator, and have a structural engineer inspect the auditorium again. The Public Protection

Cabinet’s Division of Fire Prevention also inspected the premises on December 18, 2017 and

noted problems with the fire alarm system, recommended the boiler in the basement be

inspected, replace ceiling tiles, maintain better housekeeping at second and third floor storage

areas, and remove combustibles from hallways, remove combustibles from exit, and remove

padlock from exit door. See Exhibit 5. LCCS made significant strides during winter break while

school was not in session to fulfill these requests including scheduling repairs to the generator,

and then securing the opinion of a structural engineer who inspected the premises and wrote on

December 29, 2017 that the “areas cordoned off from use should remain so, but the other areas

of the school may remain in use.” See Exhibit 6. LCCS was then given until January 26, 2018

to make suggested improvements. Based on information and belief, and despite those

assurances, letters were sent to parents of Cordia students informing them that the school would

be closing on January 15, 2018.

22. On January 17, 2018, the Commissioner notified Alice Whitaker, the Director of Lotts

Creek, that the school would be subject to closure on February 2, 2018 pursuant to KRS 156.010,

KRS 156.148, KRS 156.210 and KRS 162.060, as set forth in the correspondence attached to this

Complaint as Exhibit 7. The letter states, “After reviewing the findings of three (3) separate

inspections by KDE staff and the reports of the state fire marshal, health department and a

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certified engineer, it is clear that the continued occupancy of the leased Cordia School building

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threatens the safety and well-being of the students and staff.” Id.

23. The correspondence sent by the Commissioner indicated that the school would close

on February 2, 2018, that the approval of the lease between the Knott County School Board and

LCCS would be withdrawn, and that the students would be reassigned to other facilities within

the district at the discretion of the Knott County Board of Education and Superintendent Kim

King. Id.

24. The various concerns stated by the Department in the Commissioner’s letter have been

addressed by the school, namely the shoring up of the core roof structure. Currently, any

remaining safety hazards have been blocked off to both students and teachers to ensure their

safety. Bryan K. Johnson of Poage Engineers and Associates stated in his report that the areas

cordoned off should remain so, but the other areas of the school may remain in use. See Exhibit

6.

25. The Commissioner’s second letter to LCCS also cited the cancellation of a previously-

held insurance policy as “evidence of either: a) the inability of the LCCS to afford insurance

coverage; and/or b) the unwillingness of property and liability insurers to issue coverage on the

structurally damaged Cordia School building.” Exhibit 7, p.2.

26. Alice Whitaker of LCCS responded to Commissioner Pruitt’s January 17, 2018 letter

and addressed each concern. See Exhibit 8. She stated that LCCS had received an estimate for

enhanced shoring up of the auditorium, as recommended by the structural engineer, which could

be completed within two weeks. LCCS addressed the Commissioner’s concerns about providing

financial documents to cover the costs of the roof truss repairs. Plans have already been made to

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immediately install a generator and rectify any other of the repairs requested by the

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Commissioner.

27. The Knott County School Board called a special board meeting on January 23, 2018 to

decide whether to implement the allegations received from the Commissioner of Education in his

December 12, 2017 and January 17, 2018 letters regarding the safety conditions at Cordia

School. Commissioner Pruitt walked into the meeting and announced that he had already made

his decision regarding the safety of the Cordia School. Before the vote, Board attorney, Tim

Crawford, advised the Board that due to the Commissioner’s findings, they had no choice but to

close the school because the Commissioner had jurisdiction over the decision. The School Board

then voted 4-1 to accept the allegations of the Commissioner and opted to close the Cordia

School mid school year beginning February 2, 2018.

28. Plaintiffs were not afforded an opportunity to be heard at the January 23, 2018

meeting and address the concerns of the Commissioner or the Board. Plaintiffs were not given

notice of these allegations, nor an opportunity to correct any alleged issues at the LCCS campus.

Plaintiffs were not given adequate an opportunity to explain the ongoing litigation against

Lloyd’s of London and the potential to replace or repair any potential issues with the Cordia

School roof.

29. Plaintiffs allege that the unilateral action of the Defendants is without lawful authority

and that the closure of the school with 230 students causes irreparable harm and constitutes

arbitrary action as prohibited by the Section 2 of the Kentucky Constitution.

30. The Kentucky Constitution also allows that all Kentucky school aged children are

entitled to an education at a public school. Section 183 states that the General Assembly shall

provide for an “efficient system of common schools throughout the State.”

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31. Defendants’ actions violate Section 2 of the Kentucky Constitution and would

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unlawfully interfere and deny the students the educational opportunities at the Cordia School.

See the attached affidavits of Donna Hurley and V.R., Exhibits 9 and 10.

32. In the landmark case of Rose v. Council for Better Education, 790 S.W.2d 186, 60 Ed.

Law Rep. 1289. (1989), the Kentucky Supreme Court mandated that there was a fundamental

right of every child in the Commonwealth to an adequate education. The actions of the

Defendants in the instant action have violated the rights of the Plaintiffs in that the arbitrary and

abrupt closing of their public school will prevent the children of the Plaintiffs Hurley and Melton

to receive an education as described in their attached affidavits.

33. The Cordia School is located in what is likely the most geographically remote area of

this Commonwealth. The closing of the school would significantly interfere with the rights of the

children to receive an education in that they would be forced to take in many instances 30-60

minute bus rides on treacherous mountain roads. The two closest elementary schools in the

Knott County system are Carr Creek Elementary and Emmalena Elementary, which are ten miles

(21 minutes away) and fifteen miles (25 minutes away) respectively from Cordia. Knott Central

High School is twenty miles (34 minutes away) from Cordia.

34. Forcing students to enroll in new schools would cause irreparable harm, especially

given the additional transportation hardship, particularly during the winter months when students

in Knott County miss upwards of 20-30 days of school per year due to inclement weather and

dangerous road conditions.

35. Many of the special needs students at the Cordia School will be irreparably harmed by

having to integrate into new schools without any notice or preparation.

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36. The Cordia School serves a vital role in the local community beyond simply providing

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K-12 education. The school also operates an after-school program, houses a food pantry for 80-

100 local individuals, oversees housing repair and home building projects on nearby homes, and

houses a state-of-the-art fitness center that is available to the community free of charge.

37. It is possible, given the circumstances, that a portion of the 230 currently enrolled

students at the Cordia School will either drop out, be home schooled, or simply abandon their

educational opportunities.

38. The Plaintiffs further allege that the stated basis for the Commissioner’s

correspondence demanding closure of the Cordia School as set forth in the January 17, 2018

correspondence is factually incorrect on numerous fronts.

39. The Plaintiffs further state that they were notified that they had until January 26, 2018

to address the issues with the physical structure of the school and were in good faith seeking to

remedy any safety concerns the Commissioner had. Despite their assurances and proposed

deadline of January 26, 2018, Defendants then scheduled the special meeting of the Knott

County School Board on January 23, 2018, and without giving Plaintiffs the opportunity to be

heard, essentially presented the School Board with the Commissioner’s allegations that there was

no other option but to close the school.

40. LCCS has completed work in an effort to mitigate the Commissioner’s concerns in his

December 12, 2017 letter and allegations from the Commissioner’s January 17, 2018

correspondence are greatly exaggerated. Plaintiffs believe resolution of the Commissioner’s

issues could have been achieved with adequate notice and due process considerations.

41. Instead, the decision to close the Cordia School during the January 23, 2018 meeting

of the Knott County Board of Education was made after the Board heard testimony from the

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Commissioner of Education in an attempt to assert influence over the Board’s decision. No other

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witnesses were called by the Board.

42. Defendant Pruitt cites five Kentucky statutes in his correspondence which he claims

grants him authority to take action in this case. A review of the statutes indicates that no such

authority is given to justify the proposed action of closing the school and terminating the

contractual agreement between Lotts Creek and the Knott County School Board.

43. Furthermore, the Knott County Board of Education’s decision to close the Cordia

School was in violation of Plaintiffs’ due process rights and constitutes arbitrary action that is in

violation of Section 2 of the Kentucky Constitution.

44. The Plaintiffs ask that this matter be promptly assigned for a preliminary hearing so

that they can demonstrate that the factual basis for the proposed closing of the Cordia School

simply does not exist and that the actions of the Defendants will cause great irreparable harm

violating the constitutional rights of the children to receive an education and the rights to be free

of arbitrary action.

45. The Knott County Board of Education is named as an indispensable party in that they

have a contractual relationship with LCCS. The actions of the Commissioner also constitute an

impermissible interference with contract under the Kentucky Constitution. The actions of the

Commissioner at the January 23, 2018 Board meeting also unduly influenced the Board, while

the Plaintiffs were not given a reasonable opportunity to be heard and present evidence to the

contrary.

46. Plaintiffs seek a temporary restraining order to prevent the closing of the school and

prevent the severing of the contractual relationship between the Knott County Board of

Education and LCCS.

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CAUSES OF ACTION

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COUNT 1: THE BOARD’S DECISION TO CLOSE CORDIA SCHOOL VIOLATES
PLAINTIFFS’ DUE PROCESS RIGHTS AND WAS ARBITRARY AND CONSTITUTES
AN ABUSE OF DISCRETION

47. Plaintiffs incorporate by reference Numerical Paragraphs 1-46 as if fully set forth

below.

48. The Knott County Board of Education’s decision on January 23, 2018 to close the

Cordia School violates Plaintiffs’ due process rights as they were not given an opportunity to be

heard and were unable to present any evidence to contradict the Commissioner’s testimony at the

hearing. The Board’s unilateral decision was arbitrary and constitutes an abuse of discretion

because it was made with imperfect information regarding the condition of the buildings on the

LCCS campus and the safety of the Cordia School’s students.

49. Unlike in Coppage v. Ohio County Bd. of Educ., 860 S.W.2d 779 (Ky. 1992), where

the Court held that school boards have the power and authority to close schools within a local

system and upheld the decision to close the schools, this case is distinguishable because the

Board in Coppage made the decision to close based on appropriate consideration of factors such

as “the costs of renovating the school or building a new high school... the dwindling student

population in that area, [and] the inability to offer a full curriculum.” Id. at 784. In Coppage,

“[t]he record reveals that the board considered the primary concerns addressed by KRS

157.420(6) in its discussions and final decision regarding closing the school.” Coppage at 784.

However, the Knott County Board relied solely on the Commissioner’s allegations and on the

advice of counsel that the Commissioner had jurisdiction in these matters, for closing the Cordia

School. No such factual determinations were made because the Board failed to consider the

various reports of certified professionals.

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50. Therefore, the standard articulated in American Beauty Homes Corp. v. Louisville and

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Jefferson Co. Planning and Zoning Comm’n, 379 S.W.2d 450 (1964) prevails and the prohibition

against arbitrary and capricious agency action should be upheld. The Board’s decision to shut

down Cordia School affected the rights of Plaintiffs, who were not given an adequate

opportunity to be heard, the decision was therefore not supported by substantial evidence and

should be voided.

51. In fact, Butler v. United Cerebral Palsy of Northern Ky., Inc., 352 S.W.2d 203, 208

(Ky. 1961) held that the legislature could delegate certain tasks to local agencies and boards if

there are procedural safeguards in place, or an opportunity for judicial review, to protect against

“unfairness, arbitrariness, and favoritism.” Id. Judicial review of the Knott County School

Board’s arbitrary decision to close the Cordia School is the only path forward.

52. Plaintiffs were denied the opportunity to present defenses to the allegation that the

school was unsafe for its students and staff. Plaintiffs were in possession of a December 29,

2017 certified engineer’s report by Bryan K. Johnson, P.E. which opined, “that areas cordoned

off from use should remain so, but the other areas of the school may remain in use.” See Exhibit

6. LCCS was also in the process of securing a contractor to shore up the remaining issues

addressed by Mr. Johnson, and had ordered a new generator to be installed immediately, and was

attempting to alleviate any of the remaining concerns expressed by the Commissioner in his

letter, and believed they had until January 26, 2018 to make the necessary repairs.

53. Section 2 of the Kentucky Constitution denies the use of “absolute and arbitrary power

over the lives, liberty and property of freemen...”

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54. Commissioner violated the Plaintiffs’ rights to due process as guaranteed by the

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Kentucky Constitution. No hearing was held, there was no opportunity to be heard, nor present

defenses and cross examine witnesses.

55. Commissioner has the authority under KRS 156.210(2) to administer oaths and

examine witnesses “in any matter pertaining to the public schools.” He may also “compel

attendance of witnesses before him and compel witnesses to testify in any investigation he is

authorized to make.” No such testimony was heard, and no such investigation was made by the

Commissioner under his statutory authority.

56. Plaintiffs were denied the opportunity to present defenses to the allegation that the

school was unsafe for its students and staff. Plaintiffs were in possession of a December 29,

2017 certified engineer’s report by Bryan K. Johnson, P.E. which opined, “that areas cordoned

off from use should remain so, but the other areas of the school may remain in use.” See Exhibit

6. LCCS was also in the process of securing a contractor to shore up the remaining issues

addressed by Mr. Johnson, and had ordered a new generator to be installed immediately, and was

attempting to alleviate any of the remaining concerns expressed by the Commissioner in his

letter, and believed they had until January 26, 2018 to make the necessary repairs.

57. Defendants’ actions are arbitrary and capricious, not in accordance with the law, and

caused injuries to the Respondents. The decision to close the Cordia School and transfer students

must be set aside and voided.

COUNT 2: DEFENDANTS’ ACTIONS ARE ARBITRARY AND CAPRICIOUS AND


WERE IN EXCESS OF STATUTORY AUTHORITY

58. Plaintiffs incorporate by reference Numerical Paragraphs 1-57 as if fully set forth

below.

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59. The actions of the Knott County School Board are arbitrary and capricious and the

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Commissioner acted in excess of its statutory authority.

60. The Commissioner’s Letter dated January 17, 2018 states that under his authority as

Commissioner of Education and chief state school officer, he is withdrawing the approval of the

lease between the Cordia School and the Knott County Board of Education on February 2, 2018.

The correspondence also states that, “On or before February 2, 2018, the Knott County Board of

Education and Superintendent King shall take all action necessary to reassign the attendance

boundaries of Cordia School to other schools within the district and/or... establish a plan for the

use of approved alternative facilities...”

61. The Commissioner has no such authority to withdraw its support of a valid lease

between Knott County Board of Education and LCSS, in which the Commission nor the

Department is a party. KRS 160.160 requires the approval of the Department of Education

before any school board may lease a building or public facility. The Department has already

approved the lease between the parties. The Commissioner does not have the authority to

unilaterally withdraw such approval in the middle of the lease’s term.

62. The Commissioner has no express or implied authority to act under KRS 156.010 or

156.148 to close a public school and order the Knott County Board of Education to reassign

attendance boundaries for the Cordia School. Only the Board of Education has the authority

under KRS 160.290 to manage all public-school property.

63. The Knott County Board of Education met on January 23, 2018, and after only hearing

evidence presented by the Commissioner, arbitrarily voted to close the Cordia School. Plaintiffs

allege that the Commissioner tainted the proceedings by unfairly characterizing the extent of the

damage to the Cordia campus. An inspection of the premises by Bryan Johnson, Professional

18
Engineer from Poage Engineering, on December 29, 2017 found that “areas cordoned off from

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000019 of 000107


use should remain so, but the other areas of the school may remain in use.” See Exhibit 6.

64. To the extent that anyone has the authority to close the Cordia School, it would be the

State Fire Marshal. He has reviewed the building and declined to take any such action.

65. While the Knott County Board of Education has the authority to close and consolidate

schools within its district, it is clear they arrived at the decision to close Cordia without hearing

evidence from the Plaintiffs to rebut the presumption that the continued occupancy of the Cordia

School was unsafe for students and staff. The Board was also operating under the advice of

board counsel which improperly advised the board that the Commissioner had jurisdiction over

these matters and that the board had no choice but to close the school. This is an abuse of power

by the Commissioner in an attempt to assert influence and authority over the school board and

usurp its powers.

66. Defendants’ actions are arbitrary and capricious, not in accordance with the law, and

caused injuries to the Respondents. The decision to close the Cordia School and transfer students

must be set aside and voided

COUNT 3: DEFENDANTS’ DID NOT BASE THEIR DECISION ON SUBSTANTIAL


EVIDENCE

67. Plaintiffs incorporate by reference Numerical Paragraphs 1-66 as if fully set forth

below.

68. Respondents’ decision violates KRS 13B.150(c) as it lacks substantial evidence on the

whole record.

69. The Knott County School Board did not hear arguments from the Plaintiffs during the

January 23, 2018 special meeting, thus the record is devoid of substantial evidence to support its

decision. Plaintiffs did not have an opportunity to rebut the presumptions made in the

19
Commissioner’s letter, nor were they afforded the opportunity to present valid defenses to the

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000020 of 000107


allegations.

70. Instead, the Knott County Board of Education acted to close the Cordia School

without first developing a full and complete record of events and chose to base their decision

solely on the Commissioner’s testimony and the board counsel’s advice that they had no choice

but to close the school. Their decision to close Cordia was not based on substantial evidence and

therefore must be vacated.

71. Defendants’ actions are arbitrary and capricious, not in accordance with the law, and

caused injuries to the Respondents. The decision to close the Cordia School and transfer students

must be set aside and voided.

COUNT 4: DEFENDANTS’ ACTIONS VIOLATE ROSE V. COUNCIL FOR


BETTER EDUCATION

72. Plaintiffs incorporate by reference Numerical Paragraphs 1-71 as if fully set forth

below.

73. In Rose v. Council for Better Education, 790 S.W.2d 186 (Ky. 1989) the Kentucky

Supreme Court mandated that there was a fundamental right of every child in the

Commonwealth to an adequate education and that it was the legislature’s duty to provide an

efficient system of common schools. Public schools must be adequately funded by the

legislature, must be free to all, must be available to all children, must be substantially uniform

throughout the state, must provide equal educational opportunity throughout the state, among

other things. Id. at 212, 213.

74. Defendants’ actions violate the standard for public education set forth in Rose v.

Council for Better Education, as students in this remote location will have to undergo major

hardships to be able to attend other schools in Knott County.

20
75. Defendants’ actions are arbitrary and capricious, not in accordance with the law, and

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000021 of 000107


caused injuries to the Respondents. The decision to close the Cordia School and transfer students

must be set aside and voided.

COUNT 5: DEFENDANTS’ ACTIONS VIOLATE KY. CONST. § 3 EQUAL


PROTECTION CLAUSE

76. Plaintiffs incorporate by reference Numerical Paragraphs 1-75 as if fully set forth

below.

77. Section 3 of the Kentucky Constitution is the equal protection clause and states that all

men, are equal and that “no grant of exclusive, separate public emoluments or privileges shall be

made to any man or set of men.”

78. Defendants violated Section 3 when they unilaterally ordered the Cordia School to

close, even though it is safe for its students, and failed to take similar action on other schools in

the Commonwealth that are in worse condition.

79. Defendants’ actions are arbitrary and capricious, not in accordance with the law, and

caused injuries to the Respondents. The decision to close the Cordia School and transfer students

must be set aside and voided.

COUNT 6: THE BOARD’S DECISION TO CLOSE CORDIA SCHOOL RESULTS IN A


BREACH OF CONTRACT

80. Plaintiffs incorporate by reference Numerical Paragraphs 1-79 as if fully set forth

below.

81. A valid lease was executed by LCCS and Knott County Board of Education and went

into effect on July 1, 2016 and contained an option to extend for the 2017-2018 school year. The

lease was approved by the Kentucky Department of Education and that the parties agree to lease

21
the facility and operate a public school “during the 2016-2017 school year and beyond.” See

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000022 of 000107


Lease Agreement, Exhibit 1.

82. The lease agreement, under Section 8.3, may only be changed or revised with written

consent of both parties and approved by the Department of Education. The lease is valid

pursuant to KRS 162.140. Section 2.1 of the lease sets forth the requirements for terminating the

lease. The agreement is to remain in effect for the full term and “ending upon the Board of

LCCS giving notice of termination pursuant to Section 6.2 hereof, or the expiration of

termination of the New Facility Lease, whichever is earlier.” Section 2.1 of Exhibit 1.

83. Defendant, Knott County School Board, breached the contract when they voted on

January 23, 2018 to break the lease with LCCS and shut down the Cordia School, without valid

notice under the lease’s provisions.

84. Plaintiffs have been injured and will continue to suffer injuries as the result of the

Defendants’ breach, as described herein.

PRAYER FOR RELIEF

WHEREFORE, Plaintiffs respectfully request that this Court:

1. Accept jurisdiction over this declaration of rights;

2. Docket the accompanying Motion for Temporary Restraining Order for hearing;

3. Issue a restraining order and/or preliminary injunction preventing the closure of

Cordia School and the reassignment of the attendance boundaries of the Cordia

School;

4. Issue a restraining order and/or preliminary injunction preventing the transfer of

staff and students to other schools, or any alternative location;

22
5. Issue a restraining order and/or preliminary injunction to enforce the valid lease

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000023 of 000107


between the Knott County Board of Education and LCCS;

6. Make a declaration under KRS 418 that the Plaintiffs rights under the Kentucky

Constitution have been violated and that the Commissioner’s December 12, 2017

and January 17, 2018 letters are null and void and are in excess of his statutory

authority; that the Commissioner is exceeding his statutory authority by

threatening to reassign the attendance boundaries of the Cordia School; that it is

the responsibility and duty of the Knott County Board of Education to maintain

and repair the inside of the Facility pursuant to Section 6.1 of the signed lease

with LCCS; that the Commissioner’s authority to unduly influence the Knott

County School Board to make a decision to close the Cordia School without

adequate due process or opportunity to be heard was arbitrary and capricious and

constitutes an abuse of discretion;

7. Issue an eventual permanent injunction preventing the Knott County School

Board from shutting down the Cordia School without adequate due process;

8. Hold a trial by jury;

9. Allow Plaintiffs to recover the costs of the action, including attorneys’ fees; and

10. Grant such other relief as the Court deems just and proper.

23
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000024 of 000107
Respectfully submitted,

/s/ Clay Barkley


Clay A. Barkley
KBA # 93636
Randal A. Strobo
KBA # 92767
STROBO BARKLEY PLLC
239 South Fifth Street
Suite 917
Louisville, Kentucky 40202
cbarkley@strobobarkley.com
rstrobo@strobobarkley.com
Co-Counsel for Petitioners

Ned Pillersdorf
KBA # 54930
Pillersdorf, DeRossett, and Lane
124 West Court Street
Prestonsburg, KY 41653
(606) 886-6090
(606) 886-6148 (fax)
pillersn@bellsouth.net
Co-Counsel for Plaintiffs

24
Exhibit 1

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000025 of 000107


B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000026 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000027 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000028 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000029 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000030 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000031 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000032 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000033 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000034 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000035 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000036 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000037 of 000107
Exhibit 2

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000038 of 000107


B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000039 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000040 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000041 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000042 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000043 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000044 of 000107
Exhibit 3

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000045 of 000107


Matthew G. Bevin Hal Heiner

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000046 of 000107


Governor Secretary
Education and
Workforce Development Cabinet
Stephen t, Pruitt, Ph.D.
Commissioner of Education

KENTUCKY DEPARTMENT OF EDUCATION


300 Sower Boulevatd • Frankfort. Kentucky 40601
Phone: (502) 564-3141 • www.educatlon.ky.gov

December 12, 2017 VIA EMAIL AND U.S. MAIL

Ms. Alice Whitaker


Lotts Creek Community School, Inc.
5837 Lotts Creek Road
Hazard, KY 41701

Superintendent Kim King


Knott County Schools
1156 Hindman Bypass
Hindman, KY 41822

Mr. Randy Combs, Board Chair


Knott County Board of Education
166 Beulah Lane
Hindman, KY 41822

RE: Conditions at the Cordia School .

Dear Ms. Whitaker, Superintendent King, and Mr. Combs:

I am writing to you to express my concerns regarding health and safety conditions that exist at
the Cordia School campus in Lotts Creek, Kentucky. As you know, the Cordia School is
operated as a K-12 public school by the Knott County Board of Education. The school facilities
are owned by the Lotts Creek Community School, Inc. (LeCS) and leased to the Knott County
Board of Education.

On November 21. 2017. counsel for the Kentucky Department of Education (KDE) was notified
by the Office of Education Accountability (OEA) that after an onsite visit by OEA to investigate
a complaint, serious health and safety conditions were present on the Cordia campus, particularly
the facility that houses the kindergarten through grade 12 classrooms and cafeteria/auditorium.
On November 27. 2017, I deployed KDE staff to the Cordia campus to conduct a health and
safety inspection. The staff included a licensed architect and a KDE staff member responsible for
safety coordination at the Kentucky School for the Deaf, Kentucky School for the Blind, and the
53 state-operated area technology centers throughout the state. On December I, 2017, I again

KentuckyUnbridledSpirlt.com An Equal Opportunity Employer M/F/D


Conditions at the Cordia School
December 12, 2017
Page 2 of 5

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000047 of 000107


sent KDE staff to the Cordia campus to join officials from the State Fire Marshal's Office for
additional inspections. Officials from the Department for Public Health conducted additional
inspections on December 4, 2017.

I am greatly concerned by the information that has been reported to me by KDE staff, OEA and
other state agencies regarding conditions on the Cordia campus that threatens the health and
safety of the students and staff at this school. The issues affecting the health and safety of those
occupying the premises of the Cordia School that have been reported to me can be categorized as
follows:

1. Structural damage/pending collapse of roof of central administrative


arealcafeterialauditoriumlcommon hallway between grade levels (areas appear to be
currently not in use by students/staff but could threaten integrity of entire building's
roofing system). The structural failure has also adversely affected the HVAC system,
interior finishes, lighting and other building systems in proximity to this area;
2. Temporary "shoring" of roof area of central administrative
arealcafeterialauditoriumlcommon hallway exists without documentation of sufficiency
and soundness by a structural engineer;
3. Major structural failure of masonry wall/foundation of school gymnasium building
(building presumed closed but evidence exists of current use);
4. Failure of fire alarm system of school gymnasium building (building presumed closed but
evidence exists of current use);
5. Numerous other safety issues documented by KDE staff inspections on November 27th
and December lst andlor the Fire Marshal's Report(s) which include, but are not limited
to, the lack of warm water in restrooms; at least two (2) urinals not functioning;
inadequate water pressure; electrical safety violations; excessive occupancy loads of
certain rooms; reduced egress to certain exits; emergency lighting/exit signs not
illuminated; numerous fire extinguishers dated 1998 without replacement, maintenance or
inspections logs; fire alarm malfunction in the elementary wing of the school building;
flammable items located in electrical closet; no documentation of the required
semiannual inspection on the range hood in kitchen area; boiler not inspected since 2013;
leak in the roof of the family resource center with fecal matter located above the drop
ceiling in the cooking area and mold on the adjacent gypsum board; and the fire access
plate outside the building has been fastened and prevents access in an emergency; and
6. Numerous additional health and safety issues related to food service documented by the
December 4, 2017 report of the Department for Public Health.

It is my understanding that the current lease between the Knott County Board of Education and
LeCS required an inspection of the facility to be completed by a certified structural engineer to
determine whether structural repairs were required and an accompanying written report
addressing the inspection findings. To date, KDE has not received a copy of this report as
required by the current lease. However, KDE obtained an email dated July 27,2017 from Envista
Forensics which indicated that Mr. Brent Jones with Envista Forensics inspected the premises on
July 25,2017 on behalf of "the insurance carrier." Mr. Jones stated as follows in his email report:
Conditions at the Cordia School
December 12, 2017
Page 3 of5

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000048 of 000107


Please note that the central administrative section and cafeteria/auditorium are not
safe to be occupied due to structural damage that could led [sic] to sudden
collapse. At the time of inspection, [ informed Mrs. Alice Whitaker that the
building was unsafe to be occupied. Additionally, it was recommended that the
building owner shore the evident damaged trusses to mitigate the risk of collapse
of the auditorium roof which could led [sic] to a progressive collapse of the
surrounding roof system.

Recent inspection of the site revealed temporary "shoring" is in place in the area of the roof truss
failure(s). It is not clear whether the shoring was installed under the guidance and direction of a
certified structural engineer. There is no evidence of any remediation of the structural failure of
the masonry wall in the school gymnasium.

Pursuant to my authority as commissioner of education and chief stale school officer under KRS
156.0 I0, 156.148, 156.210 and KRS 162.060, the following actions must occur immediately:

1. Prohibition by the school district of any school activity, school event or school athletic
team practice, at any time before, during or after school hours, in the Cordia school
gymnasium until the structural deficiencies and safety issues are remedied in that
building. Those remedies must be confirmed and approved in writing by KDE staff and
the Kentucky Fire Marshal before occupancy or use by any student, staff member, team
or group of the Cordia School. The landlord and the landlord's agents shall not at any
time have the authority to direct, permit, or encourage the use of facilities by school
classes, students, teams or groups in contradiction of this paragraph or the authority of
school or school district officials;
2. Pursuant to the terms of the lease, the building owner shall cause a full inspection of the
Cordia school premises (including the school gymnasium) by a certified engineer and to
determine the complete list of structural repairs that must be made to the facilities for full
use by the district of those facilities. In addition, the engineers report shall provide any
additional temporary actions that are required to stabiJize the roof structure and ensure
that the compromised structure will not fail, including evaluation of the temporary
"shoring" that has been installed. The selection of the certified engineer shall be approved
by KDE. The report shall be delivered to the Knott County Superintendent, the Knott
County Board of Education and the Commissioner of Education on or before January 1,
2018;
3. Continuation of the prohibition of access by students and staff to the
cafeteria/auditorium/common hallway in the Cordia school building and the school
gymnasium until such time as the structural deficiencies are permanently remedied per
the directions of the certified structural engineer described in paragraph #2 above;
4. Remediation by the school district of all health and safety concerns, under the control of
the district, outlined in this letter and in the attached reports on or before January 1, 2018,
or earlier if the state agency with jurisdiction has instituted an earlier deadline. (It is my
Conditions at the Cordia School
December 12, 2017
Page 4 of5

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000049 of 000107


understanding that the school district has already made efforts over the past week to
remedy many of these issues); and
5. Remediation by the landlord of all health and safety concerns, under the control of the
landlord, outlined in this letter and in the attached reports on or before January 1,2018 or
earlier if the stale agency with jurisdiction has instituted an earlier deadline.

If the conditions above, including the installation by the landowner of the prescribed temporary
structural repairs required in paragraph #2 above, are not satisfied by January 1,2018, the
previous approval by the KDE of the current lease between the parties will be withdrawn and the
Knott County Schools will ensure that the students assigned to the Cordia School are placed in
other schools within the district on or before January 15, 2018. If the district desires to continue
or renew operations of the Cordia School on the premises of the LCCS for the 2018-2019 school
year, a new one (I) year lease shall be created and tendered to the KDE for approval no later than
April 1.2018. Future approval by the KDE of any lease between the parties will be contingent
upon future inspections of the premises and any other relevant factors to ensure the health and
safety of the students and staff of the Cordia School. KDE will not approve a lease of the Cordia
school premises for the 2018-2019 school year if permanent structural repairs to the school
building and gymnasium and repairs to all affected building systems (HVAC, interior finishes,
electrical, etc) are not performed by June I, 2018.

I am also aware that historically the LeCS houses high school students that originate from out of
state on or around the premises of the Cordia School campus. It is my understanding that these
"dormitories" are part of the campus that is presumed to be outside of the lease between LCCS
and the Knott Board of Education. While the living conditions and arrangements of the
dormitories appear to be outside of my authority as commissioner of education and chief state
school officer, I am no less concerned for the welfare of students that may be living in conditions
similar to those described in this letter and the in the attached reports. If my concern is valid and
the dormitories are in a state of disrepair similar to the school premises. I implore the Lecs to
remedy those conditions immediately. Reports to KDE of any condition affecting the health and
safety of Cordia School students, on or off the leased premises. will be reported to appropriate
state agencies, including the Department for Community Based Services, Division of Protection
and Permanency.

I know that all parties involved desire the best for the students of the Cordia School and the
community of Lotts Creek. I am also aware of the important history and original mission of the
LCCS. However. neither the mission of LCeS nor the mission of the Knott County Board of
Education will be served if our students and staff are subject to conditions that are not conducive
to learning and that threaten their health and safety.
Conditions at the Cordia School
December 12, 2017
Page 5 of5

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000050 of 000107


Questions concerning this correspondence may be directed to Kevin C. Brown, Associate
Commissioner and General Counsel, kevin.brown@education.ky.gov or 502-564-4474.

Ilk-
Step en L. Pruitt, Ph.D.
Commissioner of Education

Attachments

Cc: Members of the Knott County Board of Education


Hon. Tim Crawford, Counsel to Knott County BOE
David Broderick, Division of Housing, Building and Construction (Fire Marshal)
Freddie Grigsby, Kentucky River District Health Department
David Wickersham, Director, Office of Education Accountability
Members of the Kentucky Board of Education
Robin Kinney. KDE Associate Commissioner
Kevin C. Brown, KDE Associate Commissioner and General Counsel
Exhibit 4

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000051 of 000107


B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000052 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000053 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000054 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000055 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000056 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000057 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000058 of 000107
Exhibit 5

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000059 of 000107


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B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000061 of 000107


Exhibit 6

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000062 of 000107


POAGE ENGINEERS & ASSOCIATES, INC.
880 SPARTA COURT, SUITE 200
LEXINGTON, KENTUCKY 40504
PHONE: (859) 255-9034

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000063 of 000107


FAX: (859) 252-3130

December 29, 2017

Ms. Alice Whitaker


Lotts Creek Community School
5837 Lotts Creek Road
Hazard, Kentucky 41701

Re: Building Review - Phase I


Cordia School
6050 Lotts Creek Road
Hazard, KY 41701

Dear Ms. Whitaker:

The existing framing for the above referenced building has been reviewed by this office. The
inspection involved visual observation of the exposed framing and discussions of the building
history. My analysis is based upon design values provided by industry standard material
specifications. No tests were performed to determine the actual load-carrying capacity of any
structural element.

The existing drawings for the one story school, produced by B. Daniel Roll, Architect (dated June
29, 1996) were reviewed. The building consists of an Elementary Classroom wing, a High School
Classroom wing, and a Central/Core area. The roof consists of asphalt shingles over e” plywood
deck supported by 2x wood trusses @ 2'-0" o.c. The roof trusses are supported by reinforced 8"
c.m.u. walls, with 12" c.m.u. walls at each end of the two classroom wings. The load-bearing walls
rest atop concrete stem walls over concrete spread footings.

The much older Gymnasium was reviewed, as well, but not the adjacent original High School. There
were no drawings available for the gym. You indicated that it remains closed and currently not in
use. The roof appears to consist of nonballasted EPDM over 1½” metal roof deck supported by long
span open-web steel joists. The walls appeared to consist of unreinforced c.m.u., but the width of
the block varied in many locations. The load-bearing walls rest atop an unreinforced (or lightly
reinforced) concrete footing that varied in width and depth.

The following represents a Phase I review intended to identify all structural concerns. Each area of
the two buildings will be identified separately. The last paragraph of each section will discuss the
necessary repairs in general terms, with the assumption that the larger structural concerns will have
a more detailed repair plan (drawings) provided in Phase II.

Elementary Classroom Wing:


The gable roof did not appear to have deflected anywhere between the two end walls. There were
a few cracks in the ceiling drywall that appear to result from minor movements in the building
Ms. Whitaker
December 29, 2017
Page Two

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000064 of 000107


elements and are not indicative of a larger issue. The roof trusses appear to be satisfactory, but there
were at least three trusses that had a 2x4 sistered over a broken web. Those appeared to have been
repairs affected during the original construction. There were several vertical cracks where the
interior masonry wall abutted the exterior walls. The majority of those should be caulked and
allowed to move. There were, however, two areas of concern identified at the far right end of the
building.

At the right end wall, there is water infiltration at Door 001 and Door 002. The primary framing
elements do not appear to be damaged, but the doors have severe rust. In addition, at Door 002,
there is a small area of the concrete slab that has settled slightly.

1. Wood truss repairs. º Check and add screws as required.


2. Water infiltration at right end wall. º Repair flashing and repoint brick.
3. Rusted doors. º Repair or replace.
4. Door 002 slab settlement. º Monitor for further settlement.

High School Classroom Wing:


The gable roof did not appear to have deflected anywhere between the two end walls. There were
a few cracks in the ceiling drywall that appear to result from minor movements in the building
elements and are not indicative of a larger issue. The roof trusses appear to be satisfactory. There
were several vertical cracks where the interior masonry wall abutted the exterior walls. The majority
of those should be caulked and allowed to move.

At the left end wall, there is water infiltration at the left rear corner of Classroom 94. There were
older diagonal cracks in the block that had been filled with caulk and painted. The primary framing
elements do not appear to be damaged, but the wall shows water damage and the steel lintel in front
of (not above) Door142 has some rust. There are also vertical cracks near the top of the parapet that
appear to indicate foundation settlement at the left front corner of the end wall.

5. Water infiltration at right end wall. º Repair flashing and repoint brick.
6. Foundation settlement. º Install foundation underpinning piers beneath left end wall.

Central/Core Area:
The hipped roof had dropped significantly over Multi-Purpose 36. All of the trusses over that area
have failed. The webs had pulled out of the press plate panel connection, with several members split
or torn. Many of the roof trusses have significant lateral deflection in the webs, with members
bowed significantly out of plane. There were some 1x4 braces installed that appeared to be
according to the manufacturer’s recommendations. Some may be missing, however. Regardless,
the roof framing over Multi-Purpose 36 cannot be salvaged and must be replaced. That includes the
Stage area, as well. There were at least two trusses that had been modified during the original
construction, but most likely not designed or approved by the manufacturer.

There is temporary shoring in Multi-Purpose 36 beneath the existing failed roof trusses. That
Ms. Whitaker
December 29, 2017
Page Three

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000065 of 000107


framing, however, should be supplemented according to the attached TEMPORARY SHORING
LAYOUT. The span of the existing beams should be cut in half by new posts installed similar to
the existing. The left and right walls have horizontal cracks at approximately 10'-0" above the slab
where the double 8" c.m.u. wall stops and the single multi-purpose wall extends up to 18'-0". As the
roof trusses have deflected, they have pushed against the supporting walls.

There are some bracing and connector members shown in the drawings that were not installed. This
occurred all over the Central/Core area. There are many truss tags indicating permanent bracing, but
none were installed. At some locations, three tags were present, but only two bracing members were
installed. In many locations, the bracing connected to a few trusses, but did not extend to something
rigid, so all of those trusses bowed together. In many locations, neither the primary truss, nor the
piggy-back truss atop was adequately braced; so, the vertical webs bowed. All of the trusses for this
area must be further evaluated after the original design documents from the truss manufacturer have
been reviewed.

There were several vertical cracks where the interior masonry wall abutted the exterior walls. The
majority of those should be caulked and allowed to move. There are a few areas with diagonal
cracks indicating slight foundation settlement. Those near Staff Lounge 27 and Corridor 71 may
likely be repaired and monitored. There were several cracks, however, along the front wall at the
bell tower that indicate a greater degree of foundation settlement. The slab along that wall has
dropped slightly, as well. There is a crack in the slab of separating Reading Area 59 with Library
58 indicating the same.

7. Wood truss repairs. º Check all field repairs and add screws as required.
8. Web bracing. º Add bracing and extend to rigid elements as required.
9. Permanent truss bracing. º Add diagonal bracing to all areas as required.
10. Multi-Purpose 36 roof trusses. º Replace and add connectors as required.
11. Temporary shoring. º Add structural elements shown.
12. Front wall settlement. º Install foundation underpinning piers beneath the front wall.

Gymnasium:
There are several vertical and diagonal cracks in the exterior walls near the corners of the rear wall.
There are several vertical cracks in the basement walls and several separation gaps between the floor
slab and walls. All of the cracks observed indicate significant foundation settlement along the rear
wall. In addition, there are at least two cracks in the earth near the left rear corner that indicate slope
stability failure. As the earth drops and slides down the hill, the stress in the foundation increases
to failure. There is a large shear crack in the foundation at the left rear corner. The footing there
appeared to be 16" wide and 4'-0" deep, but no rebar stubs were observed.

13. Cracked masonry walls. º Reinforce and repair smaller cracks; rebuild wall at larger
cracks.
14. Rear wall settlement. º Install foundation underpinning piers beneath the rear wall.
15. Slope stability. º Install retaining wall or H-Pile soil shoring.
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000066 of 000107
Exhibit 7

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000067 of 000107


B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000068 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000069 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000070 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000071 of 000107
Exhibit 8

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000072 of 000107


B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000073 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000074 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000075 of 000107
Exhibit 9

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000076 of 000107


B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000077 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000078 of 000107
Exhibit 10

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000079 of 000107


B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000080 of 000107
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000081 of 000107
COMMONWEALTH OF KENTUCKY

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000082 of 000107


FRANKLIN CIRCUIT COURT
CIVIL ACTION NO. 18-CI-______
DIVISION NO. ______

DONNA HURLEY, Individually and on


behalf of her minor children J.P. and B.P.,
TONYA MELTON, Individually and on
behalf of her minor daughter V.R., and
THE LOTTS CREEK COMMUNITY SCHOOL, INC. PETITIONERS

v. MOTION FOR A RESTRAINING ORDER,


TEMPORARY INJUNCTION, AND STAY

STEPHEN L. PRUITT, in his official capacity as


Kentucky Commissioner of Education, KENTUCKY
DEPARTMENT OF EDUCATION, KENTUCKY
BOARD OF EDUCATION, and KNOTT COUNTY
BOARD OF EDUCATION RESPONDENTS

Come now Petitioners, by and through counsel and pursuant to CR 65.03 and CR

65.04, hereby move this Court for injunctive relief against Stephen L. Pruitt (“Pruitt”), the

Kentucky Department of Education (“KDE”), the Kentucky Board of Education (“KBE”),

and the Knott County Board of Education (“Knott County BE”), to enjoin them from

closing Cordia School, transferring Cordia’s students to another school, and re-drawing

Cordia School’s district boundaries without any due process.

This action arises under KRS 13B and the provisions of the Kentucky Declaratory

Judgment Act, KRS 418.040 et seq., seeking a declaration of rights between the Petitioners

and Respondents regarding the sufficiency of due process and whether the Knott County

Board of Education’s vote to close the Cordia School on January 23, 2018 lacked

substantial evidence in the record to support such decision. The violation of the Petitioners’

1
constitutional rights will cause immediate, irreparable injury. Thus, Petitioners are

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000083 of 000107


respectfully requesting this Court grant a restraining order, temporary injunction, and stay

to maintain the status quo while this case is fully adjudicated. A Memorandum in support

has been filed with this Motion.

WHEREFORE, Petitioners MOVE this Court to grant a restraining order,

temporary injunction, and stay to maintain the status quo by preventing the Respondents

from closing the Cordia School and preventing the transfer of students during the pendency

of this case.

Respectfully submitted,

/s/ Clay Barkley


Clay A. Barkley
KBA # 93636
Randal A. Strobo
KBA # 92767
STROBO BARKLEY PLLC
239 South Fifth Street
Suite 917
Louisville, Kentucky 40202
cbarkley@strobobarkley.com
rstrobo@strobobarkley.com
Co-Counsel for Petitioners

Ned Pillersdorf
KBA # 54930
Pillersdorf, DeRossett, and Lane
124 West Court Street
Prestonsburg, KY 41653
(606) 886-6090
(606) 886-6148 (fax)
pillersn@bellsouth.net
Co-Counsel for Petitioners

2
B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000084 of 000107
CERTIFICATE OF SERVICE

The undersigned certifies that copies of the foregoing by U.S. Mail on this the 26th day of
January, 2018:

Kevin C. Brown, Associate Commissioner


General Counsel
Kentucky Commissioner of Education
300 Sower Boulevard, 5th Floor
Frankfort, Kentucky 40601

Stephen Pruitt
300 Sower Boulevard, 5th Floor
Frankfort, Kentucky 40601

Andy Beshear, Attorney General


Office of the Attorney General
700 Capitol Avenue, Suite 118
Frankfort, Kentucky 40601-3449

Randy Combs, Board Chair


Knott County Board of Education
1156 Hindman Bypass
Hindman, Kentucky 41822

/s/ Clay Barkley____________


Counsel Having Certified

3
COMMONWEALTH OF KENTUCKY

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000085 of 000107


FRANKLIN CIRCUIT COURT
CIVIL ACTION NO. 18-CI-______
DIVISION NO. ______

DONNA HURLEY, Individually and on


behalf of her minor children J.P. and B.P.,
TONYA MELTON, Individually and on
behalf of her minor daughter V.R., and
THE LOTTS CREEK COMMUNITY
SCHOOL, INC. PLAINTIFFS

v. RESTRAINING ORDER

STEPHEN L. PRUITT, in his official capacity as


Kentucky Commissioner of Education, KENTUCKY
DEPARTMENT OF EDUCATION, KENTUCKY
BOARD OF EDUCATION, KNOTT COUNTY
BOARD OF EDUCATION, DEFENDANTS

Upon Motion of the Plaintiffs herein, and the Court being otherwise sufficiently

advised, It is HEREBY ORDERED:

1. Plaintiffs are entitled to injunctive relief. CR 65.01 provides:

A party may obtain injunctive relief in the circuit court by


(a) restraining order, (b) temporary injunction, or (c)
permanent injunction in a final judgment. A restraining
order shall only restrict the doing of an act. An injunction
may restrict or mandatorily direct the doing of an act.
Injunctive relief shall not be granted in any action in the
district court except as specifically authorized by statute.

The Court finds that Plaintiffs will suffer immediate irreparable harm if, during

the pendency of this litigation, Stephen L. Pruitt (“Pruitt”), the Kentucky Department of

Education (“KDE”), the Kentucky Board of Education (“KBE”), and the Knott County

1
Board of Education (“Knott County BE”) close the Cordia School and force its 230

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000086 of 000107


students to transfer to alternate schools in Knott County.

2. The Court hereby issues and directs this Restraining Order against Stephen

Pruitt, the KDE, the KBE, and the Knott County BE, allowing the Cordia School to

remain open and its students to remain at the Cordia School, until such time as the Parties

and their counsel can be heard on Plaintiffs’ Motion for Temporary Injunction, while this

Court considers Plaintiffs’ claims against Stephen Pruitt, the KDE, the KBE, and the

Knott County BE.

3. The parties, through their respective counsel, are directed to appear for

hearing on the Motion for Temporary Injunction on , 2018,

at the hour of .

4. Pursuant to CR 65.05, and it appearing that Defendants cannot be

anticipated to suffer any pecuniary harm from the issuance of the Restraining Order, and

that the Restraining Order is in the public interest, Plaintiff is Ordered to post a bond with

the Clerk of the Franklin Circuit Court in the amount of One Dollar ($1.00).

ENTERED:

Judge, Franklin Circuit Court

2
COMMONWEALTH OF KENTUCKY

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000087 of 000107


FRANKLIN CIRCUIT COURT
CIVIL ACTION NO. 18-CI-______
DIVISION NO. ______

DONNA HURLEY, Individually and on


behalf of her minor children J.P. and B.P.,
TONYA MELTON, Individually and on
behalf of her minor daughter V.R., and
THE LOTTS CREEK COMMUNITY
SCHOOL, INC. MOVANTS

v. MEMORANDUM IN SUPPORT OF MOTION


FOR A RESTRAINING ORDER, TEMPORARY INJUNCTION, AND STAY

STEPHEN L. PRUITT, in his official capacity as


Kentucky Commissioner of Education, KENTUCKY
DEPARTMENT OF EDUCATION, KENTUCKY
BOARD OF EDUCATION, and KNOTT COUNTY
BOARD OF EDUCATION RESPONDENTS

Come now Movants, by and through counsel and pursuant to CR 65.03 and CR

65.04, and hereby move this Court for injunctive relief against Stephen L. Pruitt (“Pruitt”),

the Kentucky Department of Education (“KDE”), the Kentucky Board of Education

(“KBE”), and the Knott County Board of Education (“Knott County BE”), to enjoin them

from closing Cordia School and transferring Cordia’s students to an alternate school. The

Respondents’ actions have caused and continue to cause irreparable harm to the Movants.

In support of this Motion, Movants state as follows:

STATEMENT OF FACTS

Lotts Creek Community School (“LCCS”) owns and operates one of the most

unique schools in the Commonwealth. The Cordia School was founded to provide the

children of Lotts Creek with access to adequate education. The school is one of the last

remaining settlement schools in eastern Kentucky and serves a relatively remote

1
community isolated from the rest of Knott County. The campus is nestled in the foothills

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000088 of 000107


of the Appalachian Mountains and is one of the most remote public schools in the

Commonwealth. The Cordia School also houses many out-of-state and international

students in dormitories on the school’s campus. The Cordia School also serves a vital role

in the local community beyond providing K-12 education. The school operates an after-

school program, houses a food pantry for 80-100 local individuals, oversees housing repair

and home building projects on nearby homes, and houses a state-of-the-art fitness center

that is available to the community free of charge.

Knott County Board of Education has contracted with LCCS to operate Cordia

School, a public school in Knott County, Kentucky. The lease was executed by LCCS and

the Knott County Board of Education on July 1, 2016. The contract contains an option to

extend the agreement through the 2017-2018 school year. The option was exercised by

both parties. The agreement states the agreement must have prior approval of the KDE,

and that the parties agree to lease the facility and operate a public school “during the 2016-

2017 school year and beyond.” See Lease Agreement; Complaint, Exhibit 1. KRS 160.160

also requires approval of the lease by the KDE. However, neither Kentucky law nor the

lease grants the Commissioner the power to revoke approval of the lease mid-school year.

The lease agreement may only be changed or revised with written consent of both

parties and approved by the Department of Education. Id., Section 8.3. The lease is also to

remain in effect for the full term and “ending upon the Board of LCCS giving notice of

termination pursuant to Section 6.2 hereof, or the expiration of termination of the New

Facility Lease, whichever is earlier.” Id., Section 2.1.

2
In July 2017, structural issues with the roof of the auditorium were first discovered.

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000089 of 000107


LCCS immediately retained contractors and engineers to inspect the roof and filed a claim

with their insurer, Lloyd’s of London & International Insurance Company of Hannover SE.

However, Lloyd’s of London denied the claim. LCCS then filed a Civil Action in Knott

Circuit Court 1 against Lloyds of London for, among other things, bad faith. That case is

currently pending.

In August 2017, a structural engineer – who was approved by the KDE – inspected

the roof and LCCS’s roof stabilization efforts. All repairs were approved, and the school

was to remain open as long as the auditorium was not used.

The insurer’s adjuster, Engle Martin, contacted LCCS on September 5, 2017, and

stated Lloyd’s of London “is not in a position to either accept or reject coverage for this

loss.” See Complaint, Exhibit 2. Lloyd’s of London then cancelled the insurance policy.

Given the current condition of specific sections of the building, a new insurance policy has

been difficult to secure. However, LCCS is working diligently and in good faith to secure

a new policy.

In October, inspectors from the Office of Educational Accountability came to the

school to inspect the premises and noted problems with the building not being properly

cleaned. Under the terms of the lease, interior maintenance is the duty of the Knott County

Board of Education. On December 11, 2017, Cordia’s fire system was inspected and it

appears Cordia was not cited for any violations. See Complaint Exhibit 4.

1
Lotts Creek Community School v. Certain underwriters of Lloyds and London
International Insurance Company of Hanover, 17-CI-220 in Knott Circuit Court.

3
On December 15, 2017, the Knott County Board Attorney contacted LCCS and

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000090 of 000107


instructed them to keep students and employees out of the gym, to fix the generator, and to

have a structural engineer inspect the auditorium again. Public Protection Cabinet,

Department of Housing, Buildings and Construction, via the State Fire Marshal, then

inspected the premises on December 18, 2017 and noted problems with the fire alarm

system, recommended the boiler in the basement be inspected, replace ceiling tiles,

maintain better housekeeping at second and third floor storage areas, requested the removal

combustibles from hallways and from an exit, and requested removal of a padlock from

exit door. See Complaint Exhibit 5. That inspection did not result in any demand that the

school be closed. LCCS scheduled repairs to the generator and secured the opinion of a

structural engineer who wrote on December 29, 2017 that the “areas cordoned off from use

should remain so, but the other areas of the school may remain in use.” See Complaint,

Exhibit 6. LCCS was then given until January 26, 2018 to make suggested improvements.

Despite those assurances, on January 15, 2018, letters were sent to parents of Cordia

students informing them that the school would be closing.

On January 17, 2018, the Respondent Pruitt, in his capacity as the Commissioner

of the KDE, notified Alice Whitaker, the Director of Lotts Creek, that the school would be

subject to closure on February 2, 2018 pursuant to KRS 156.010, KRS 156.148, KRS

156.210 and KRS 162.060. See January 17, 2018 Letter; Complaint, Exhibit 7. The letter

sent by the Pruitt stated the school would close on February 2, 2018, the approval of the

lease between the Knott County BE and LCCS would be withdrawn, and the students

would be reassigned to other facilities within the district at the discretion of the Knott

County BE and Superintendent Kim King because “it is clear that the continued occupancy

4
of the leased Cordia School building threatens the safety and well-being of the students

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000091 of 000107


and staff.” Id. at 3. Pruitt also claims state law “mandates property insurance on all public

school buildings owned by local boards of education.” 2 See Complaint Exhibit 7.

However, LCCS owns the buildings and leases them to Knott County School Board. Thus

KRS 160.105 and 702 KAR 3:030 do not apply.

Alice Whitaker of LCCS addressed and corrected each of the concerns outlined by

Pruitt’s January 17, 2018, letter. See Complaint, Exhibit 8. She stated that LCCS has

received an estimate for the stabilizing the auditorium, as recommended by the structural

engineer, which could be completed within two weeks. She addressed the Commissioner’s

concerns about providing financial documents to cover the costs of the replacement

shoring, confirmed plans have already been made to immediately install a generator,

confirmed the loss of HVAC in the office and administration portions of the building could

be rectified by the use of 2-3 space heaters, explained the single pile of mouse droppings

observed is an interior maintenance issue and is the responsibility of the Knott County

Board of Education under the terms of the lease agreement, and explained that LCCS was

unaware of the Knott County Board of Education’s refusal to pay the alarm company its

annual fee for the alert system. Id.

Despite these assurances, the Knott County Board of Education called a special

board meeting on January 23, 2018 to decide whether to take action on the allegations

received from Pruitt in his December 12, 2017 and January 17, 2018 letters regarding the

safety conditions at Cordia School. At the beginning of the meeting, Pruitt announced he

2
Also, as noted above, LCCS is making diligent and good faith efforts to secure a new
insurance policy for the school.

5
had already made his decision regarding the allegations. Before the vote, School Board

B78FC5B2-6521-4667-99A2-8B88D6E2E051 : 000092 of 000107


attorney, Tim Crawford, advised the Board that due to the Commissioner’s findings, they

had no choice but to close the school because the Commissioner had jurisdiction over the

decision. 3 The School Board then voted 4-1 to accept the allegations of Pruitt as true, and

opted to close the Cordia School on February 2, 2018 in the middle of the school year.

Plaintiffs were not afforded an opportunity to be heard at the January 23, 2018

meeting and address the concerns of Pruitt or the Knott County BE. Plaintiffs were not

given notice of these allegations, were not given an opportunity to call or cross examine

witnesses, and were otherwise not afforded the due process the Kentucky Constitution

requires during an administrative adjudication. LCCS has taken all necessary steps to

correct the structural defects, of which many were not the fault of LCCS, and took all

adequate and necessary steps to ensure the safety and comfort of its students, teachers, and

staff while the defects were being corrected.

The Cordia School is located in one of the most geographically remote areas in

Kentucky. The closing of the school would substantially interfere with the rights of the

children to receive an education by forcing them to take 30-60 minute bus rides on

treacherous mountain roads in order to attend school. The two closest elementary schools

in the Knott County system are Carr Creek Elementary and Emmalena Elementary, which

are ten miles (21 minutes away) and fifteen miles (25 minutes away) respectively from

Cordia, while Knott Central High School is twenty miles (34 minutes away) from Cordia.

3
The local school board has control over closing and consolidating schools. See Coppage
v. Ohio County Bd. of Educ. by and through Likins, 860 S.W.2d 779 (Ky. 1992).

6
As a result of the proposed closure of the Cordia School mid-school year,

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Respondents are requiring the LCCS to transfer all 230 students to other schools. However,

instead of transferring, some students have stated they will drop out of school and abandon

their educational opportunities. The many out-of-state and international students in

dormitories on the school’s campus will now be forced to seek an education elsewhere.

The drastic and arbitrary measures by Pruitt and the Knott County BE are

unwarranted, unnecessary, and unlawful. LCCS was in the process of taking the necessary

steps to ensure the students safety and comfort while the structural defects are corrected in

order to remedy any safety concerns the Commissioner outlined in his January letter. LCCS

believed they had until January 26, 2018 to make such changes. Instead, the Defendants

called a special meeting, and without giving the Plaintiffs an opportunity to be heard,

presented the facts in a light most favorable to the Defendants, and voted to close Cordia

School. In order to preserve the status quo by prohibiting the Respondents from closing the

Cordia School and forcing the transfer of 230 students to other school locations, Petitioners

now seek this restraining order, temporary injunction, and stay.

ARGUMENT

I. MOVANTS ARE ENTITLED TO INJUNCTIVE RELIEF.

CR 65.03(1) and CR 65.04(1) authorize a restraining order and temporary

injunction when it has been shown that the movant’s rights are being or will be violated by

an adverse party and the movant will suffer immediate and irreparable injury, loss, or

damage pending a final judgment in the action, or the acts of the adverse party will tend to

render such final judgment ineffectual. Kentucky courts have interpreted this rule and case

law to mean a party seeking injunctive relief must demonstrate: (1) the probability of

7
immediate and irreparable loss, damage, or violation of a concrete personal right which

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will not be fully remedied by a favorable final judgment; (2) the equities favor injunctive

relief; and (3) there is a substantial question as to the merits. Maupin v. Stansbury, 575

S.W.2d 695, 699 (Ky. App. 1978); Carbon Co. v. Ramsey, 350 S.W.2d 454 (Ky. 1971);

Commonwealth et rel. Cowan v. Wilkinson, 828 S.W.2d 610, 612-613 (Ky. 1992); 7

William O. Bertelsman & Kurt A. Philipps, Kentucky Practice 451 (4th ed. 1984).

Movants can meet all three of the Maupin requirements. A restraining order and

temporary injunction is requested to enjoin the Respondents from closing the Cordia

School and transferring Cordia students to other schools. Granting injunctive relief will

maintain the status quo, preventing irreparable injury to the Movants. Furthermore, if

injunctive relief is denied, Movants will be denied meaningful judicial review of the

Respondents’ action. The Cordia School is currently being closed, and Movants are also

currently being forced to transfer to alternate schools. The resulting irreparable harm to the

Movants is immediate and ongoing.

A. MOVANTS ARE BEING IRREPARABLY HARMED, WHICH CANNOT BE FULLY


REMEDIED BY A FAVORABLE FINAL JUDGMENT WITHOUT INJUNCTIVE
RELIEF.

An “irreparable injury” is an injury for which no adequate remedy exists at law.

Wallace v. Jackson, 3 S.W.2d 766, 767 (1928). Even where an action for damages is

available, however, an injury is irreparable where “for reasons beyond his control, the

complainant cannot avail himself of it . . .” Friedburg, Inc. v. McClay, 191 S.W. 300, 302

(1917). “[W]here the danger is probable and threatened, the party may invoke the aid of

equity to prevent it and need not delay his application for injunction until the injury has

actually been inflicted. If the injury is certainly impending, certainly to be expected, that is

8
enough.” Horky v. Kentucky Utilities Co., 336 S.W.2d 588 (Ky. 1960). “The element of

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‘immediacy’ contemplates that the parties show an urgent necessity for relief.

The deprivation, or threat of deprivation, of a constitutional right is sufficient,

standing alone, to constitute irreparable injury. “When an alleged deprivation of a

constitutional right is involved, most courts hold that no further showing of irreparable

injury is necessary.” Knopf v. Wheeler, 2006 U.S. Dist. LEXIS 9965 (W.D. Ky. Mar. 10,

2006) citing Wright, Miller Krane, Federal Practice and Procedure, Vol. 11A, § 2948.1.

See also Elrod v. Burns, 427 U.S. 347, 373-74 (1976); Wesselman v. Ashley, 899 F.2d 1223

(6th Cir. 1990); ACLU v. Pulaski County, 96 F. Supp. 2d 691 (E.D. Ky. 2000). Because

Movants have alleged that the actions of Respondents were arbitrary and capricious in

violation of Movants’ constitutional rights, it is likely Movants will suffer irreparable

injury if injunctive relief is not granted.

The Respondents were denied due process. Section 2 of the Kentucky Constitution

denies the use of “absolute and arbitrary power over the lives, liberty and property of

freemen.” Movants were denied the opportunity to present defenses to the allegation that

the school was unsafe for its students and staff. Plaintiffs were in possession of a December

29, 2017 certified engineer’s report by Bryan K. Johnson, P.E. which opined, “that areas

cordoned off from use should remain so, but the other areas of the school may remain in

use.” See Complaint, Exhibit 6. LCCS was also in the process of securing a contractor to

shore up the remaining issues addressed by Mr. Johnson, and had ordered a new generator

to be installed immediately, and was attempting to alleviate any of the remaining concerns

expressed by the Commissioner in his letter, and believed they had until January 26, 2018

to make the necessary repairs.

9
In addition, they will suffer irreparable harm by being forced to transfer schools,

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especially in the middle of the school year. Students will be forced to drive an additional

30-60 minutes to attend other schools in Knott County, will have to enroll in other schools

that may not provide the same curriculum or educational opportunities found at the Cordia

School, some students may simply choose to drop out of school, some students may be

deprived of extracurricular activities provided solely by the Cordia School, resulting in

disruption to the lives of parents and children alike. The many out-of-state and international

students in dormitories on the school’s campus will now be forced to seek an educate

elsewhere.

There is no monetary amount that could satisfy the injured Petitioners. If the Cordia

School is forced to close, and the Petitioners are forced to transfer during the pendency of

this lawsuit, the damage suffered could be irreversible, rendering Movants’ right to appeal

meaningless.

B. MOVANTS CAN PRESENT A SUBSTANTIAL QUESTION ON THE MERITS.

Maupin requires the movant to present a serious or substantial question warranting

a trial on the merits. Maupin at 699. See also Commonwealth v. Wilkinson, 828 S.W.2d

610, 612 (Ky. 1992), overruled on other grounds by Com. ex rel. Conway v. Thompson,

300 S.W.3d 152 (Ky. 2009), (“[A] substantial claim to a personal right must be alleged in

order for a movant to be entitled to a temporary injunction.”] Although there is a substantial

probability that Movants will succeed on the merits, that is not what Maupin requires.

Maupin only requires that there be a substantial question on the merits. The actual overall

merits of the case are not to be addressed. Maupin at 699. There are several substantial

10
questions on the merits of this case, all aimed to prevent irreparable injury to Movants and

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its members.

1. THE RESPONDENTS HAVE VIOLATED MOVANTS’ DUE PROCESS


RIGHTS UNDER KENTUCKY LAW, ACTED OUTSIDE OF THEIR
AUTHORITY, AND DID NOT BASE THEIR DECISION ON SUBSTANTIAL
EVIDENCE.

In reviewing a decision of an administrative agency, the reviewing court must

determine whether: (1) the action was in excess of powers granted to the agency; (2)

whether there was a lack of procedural due process; and (3) whether there was substantial

evidence to support the agency's decision. American Beauty Homes Corp. v. Louisville and

Jefferson County Planning and Zoning Commission, 379 S.W.2d 450, 456 (Ky. App.

1964). Otherwise, the action of the agency is arbitrary within the prohibition of § 2 of the

Kentucky Constitution. American Beauty at 456. This case is of an adjudicatory nature, as

the LCCS and Cordia School was singled out by the action taken by Pruitt and the Knott

County Board of Education, and the decision to close the school was punitive and directed

to one specific party. Movants can present several substantial questions on the merits with

regards to the Respondents’ ultra vires actions, their failure to afford due process, and the

failure to render a decision based on substantial evidence.

i. THE RESPONDENTS ACTED OUTSIDE OF ITS AUTHORITY AND


FAILED TO AFFORD DUE PROCESS TO MOVANTS.

Pruitt’s Letter dated January 17, 2018 claims under his authority as commissioner

of education and chief state school officer, he is withdrawing the approval of the lease

between the Cordia School and the Knott County Board of Education on February 2, 2018.

See Complaint Exhibit 7. The letter also states, “On or before February 2, 2018, the Knott

County Board of Education and Superintendent King shall take all action necessary to

11
reassign the attendance boundaries of Cordia School to other schools within the district

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and/or... establish a plan for the use of approved alternative facilities...” Id. The

Commissioner has no such authority to withdraw its support of a valid lease between Knott

County Board of Education and LCCS, in which the Commission nor the Department is a

party. KRS 160.160 requires the approval of the KDE before any school board may lease

a building or public facility. The KDE has already approved the lease between the parties.

The Commissioner does not have the authority to unilaterally withdraw such approval in

the middle of the lease’s term.

The Commissioner also has no express authority to act under KRS 156.010 or

156.148 to essentially close a public school and order the Knott County BE to reassign

district boundaries for the Cordia School. Only the Knott County Board of Education has

the authority under KRS 160.290 to manage all public-school property. While the Knott

County BE has the authority to close and consolidate schools within its district, 4 they

arrived at the decision to close Cordia without affording LCCS any due process rights to

rebut evidence, call or cross examine witnesses, or present evidence that the continued

occupancy of the Cordia School was safe for students and staff. The Knott County BE was

also operating under the advice of board counsel which improperly advised that the

Commissioner had jurisdiction over these matters and that the Knott County BE had no

choice but to close the school. This is an abuse of power by the Commissioner to assert

4
See Coppage v. Ohio County Bd. of Educ., 860 S.W.2d 779 (Ky. 1992) (School board
has the authority to close and consolidate schools within its district). This case differs
from Coppage in that the board is not consolidating schools for the same reasons, the
board’s decision directly impacts one party - the Cordia School, and the action taken is
punitive in nature. Thus, because the decision was based solely on the safety of its
students and staff, and the Plaintiffs were not given an opportunity to rebut that
presumption, LCCS was denied due process and the decision was arbitrary.

12
influence and authority over the school board and usurp its powers. Respondents acted

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outside of their statutory authority.

ii. THE RESPONDENTS DID NOT BASE ITS DECISION ON


SUBSTANTIAL EVIDENCE.

There is no record by which Pruitt and the Knott County BE based its decision to

close the school and force students to transfer. If there is no record, there is no substantial

evidence. Even if there was substantial evidence, that evidence was not provided to the

Movants, and the Movants did not have a chance to respond to that evidence at the school

board hearing. Furthermore, Movants were not given the opportunity to call witnesses, nor

were they given the opportunity to cross examine witnesses. Thus, the decision to close the

school was not based on substantial evidence and was, therefore, arbitrary.

2. RESPONDENTS’ ACTIONS VIOLATES THE CONSTITUTIONAL RIGHT OF


EQUAL PROTECTION.

Section 3 of the Kentucky Constitution states all men are equal and that “no grant

of exclusive, separate public emoluments or privileges shall be made to any man or set of

men.” Respondents violated Section 3 when they unilaterally ordered the Cordia School

to close, even though it is safe for its students, by forcing Cordia School students to transfer

to alternate schools, and by failing to treat Cordia students equally to all other non-Cordia

School Knott County students. By treating the Cordia students unequally, Respondents

have violated Movants’ constitutional right to equal protection.

3. BREACH OF CONTRACT

LCCS and the Knott County Board of Education executed a lease on July 1, 2016,

which contained an option to extend the lease through the 2017-2018 school year. The

lease was approved by the KDE. The parties also agreed to lease the facility and operate a

13
public school “during the 2016-2017 school year and beyond.” See Lease Agreement,

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Complaint Exhibit 1.

The lease, under Section 8.3, may only be changed or revised with written consent

of both parties and approved by the KDE. The lease also complies with KRS 162.140.

Section 2.1 of the lease sets forth the requirements for terminating the lease. The lease is

to remain in effect for the full term and “ending upon the Board of LCCS giving notice of

termination pursuant to Section 6.2 hereof, or the expiration of termination of the New

Facility Lease, whichever is earlier.” Complaint, Exhibit 1 at Section 2.1. The Knott

County Board of Education voted on January 23, 2018 to unilaterally cancel the lease and

shut down the Cordia School without valid notice under the lease’s provisions. This

constitutes breach of contract causing injury to the Movants.

Based on the foregoing, Movants can present several substantial questions on the

merits, all of which warrant injunctive relief.

C. THE EQUITIES FAVOR INJUNCTIVE RELIEF.

Against the immediate and irreparable harm that Movants will suffer, the Court

must weigh any commensurate harm to the Respondents’ legitimate interests. Maupin, 575

S.W.2d at 699. This “balance of harm” weighs in favor of issuing the requested injunctive

relief. Courts must also disregard any alleged hardship to a defendant whose actions “were

done with full knowledge of the plaintiff’s rights and with an understanding of the

consequences which might ensue . . .” Wilson Concrete Co. v. County of Sarpy, 202

N.W.2d 597, 599 (Neb. 1972), accord: ABC Trans-National Transport, Inc. v Aeronautics

Forwarders, Inc., 379 N.E.2d 1228, 1239 (Ill. App. 1978); Kentucky Electric Development

Company’s Receiver v. Wells, 75 S.W.2d 1008, 1095 (Ky. 1934).

14
Movants are being irreparably harmed by the Respondents’ actions to close the

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Cordia School and force the transfer of 230 students in violation of their constitutional

rights. This is compounded by the circumstances surrounding the movants’ situation. As

stated above, Cordia School is uniquely situated to provide adequate educational

opportunities for the 230 students that attend the school. Not only does the school provide

an education to students in a geographically isolated community, it also serves a vital role

in the local community. The school operates an after-school program, houses a food pantry

for 80-100 local individuals, oversees housing repair and home building projects on nearby

homes, and houses a state-of-the-art fitness center that is available to the community free

of charge. Closing the school not only impacts the 230 students, it impacts the entire

community.

Upholding protections afforded by the Kentucky Constitution is of the utmost

importance to the stability and security of the Commonwealth. Ensuring those

constitutional protections and preventing irreparable harm to the Movants and community

far outweighs any harm suffered by the Respondents. Any harm to the Respondents

resulting from an injunction to allow the Movants to continue attending Cordia School

pales in comparison to the potential injury to the Movants.

D. THE REQUIREMENT FOR AN INJUNCTION BOND SHOULD BE


WAIVED OR THE BOND BE FIXED AT A NOMINAL SUM SINCE
THE MOVANTS SEEK TO ADVANCE THE PUBLIC’S INTEREST
AND TO PRESERVE THIS COURT’S ABILITY TO FASHION
MEANINGFUL RELIEF AMONG THE PARTIES BY MAINTAINING
THE STATUS QUO.

A waiver of the injunction bond provided for under Kentucky Rule of Civil

Procedure 65.05 should be granted in this case to protect the ability of the Court to render

meaningful relief in the event that Movant is successful in this action.

15
CR 65.05 provides in relevant part that:

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(1) No . . . temporary injunction shall be granted except
upon the giving of a bond by the applicant, with surety,
in such sum as the court deems proper, for the payment
of such costs and damages as may be incurred or
suffered by any person who is found to have been
wrongfully restrained or enjoined. (Emphasis added).

Kentucky Courts have waived the requirement for an injunction bond where it

“deems proper.” See Kentuckians v. U.S. Army Corps of Eng'rs, 2013 U.S. Dist. LEXIS

133339 (W.D. Ky. Sept. 18, 2013) (Holding that because “the [bond] exception is designed

to facilitate private enforcement of public rights,” no bond is required.) Similarly, in

Kentucky, the Russell Circuit Court waived bond for an injunction on the operation of a

rendering facility that was brought by surrounding residents in the public interest. See

Robertson, et al. v. A&S Proteins, et al., Temporary Injunction, Case No. 14-CI-00138

(Russell Cir. Ct., Ky., entered April 17, 2014).

However, the Kentucky Court of Appeals and Kentucky Supreme Court have not

addressed the issue. In the absence of published Kentucky case law, it is appropriate for

this Court to look to the federal rules, especially in cases where the corresponding rule is

closely related. See United Automobile, Aerospace & Agric. Implement Workers of Am. v.

Intl. Harvester Co., 597 S.W.2d 157 (Ky. App. 1980). In this case, CR 65.05(1) tracks the

language of Federal Rule of Civil Procedure 65(c), providing in substantively identical

terms that:

No . . . preliminary injunction shall issue except upon the


giving of security by the applicant, in such sum as the court
deems proper, for the payment of such costs and damages as
may be incurred or suffered by any party who is found to
have been wrongfully enjoined or restrained.

16
Both the Federal and corresponding Kentucky rule grant the Court significant

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discretion in setting the amount of the bond, providing only that the bond amount shall be

in the amount that “the court deems proper.” The Sixth Circuit Court of Appeals and other

federal courts have interpreted this language to empower the court to require either a

nominal bond or to waive the bond requirement entirely where the movant seeks to

vindicate a public interest. 5

As the Court explained in Urbain v. Knapp Brothers. Mfg. Co., 217 F.2d 810, 815

(6th Cir. 1954):

The rule leaves it to the District Judge to order the giving of


security in such sum as the court considers proper. This
would indicate plainly that the matter of requiring security
in each case rests in the discretion of the District Judge.

Thus, Rule 65(c)(3) of the Federal Rules of Civil Procedure affords the Court “wide

discretion in the matter of requiring security.” National Resources Defense Council v.

Morton, 337 F. Supp. 167, 168 (D.D.C. 1971). Litigation such as this case - where the

movants seek to uphold the Kentucky Constitution, prevent the unreasonable and arbitrary

closing of a school, and prevent the forced transfer of 230 students - is precisely the type

of case it would be appropriate for a court to dispense with a bond or to set a nominal bond.

Moltan Co. v. Eagle-Picher, 55 F.3d 1171, 1176 (6th Cir. 1995). Moreover, the bond

should also be waived or set at a nominal amount due to the substantial likelihood that the

movants will prevail on the underlying question.

5
Other jurisdictions have recognized that where the movant seeks to vindicate important
rights or “public interests” that no injunction bond or a nominal bond is appropriate. See,
for example, Bartels v. Biernat, 405 F. Supp. 1012, 1019 (E.D. Wis. 1975); Bass v.
Richardson, 338 F. Supp. 478, 491 (S.D. N.Y. 1971); Natural Resources Defense Council
v. Morton, 337 F. Supp. 167, 168-69 (D. D.C. 1971) and the cases cited in that decision.

17
Even if the Court finds that the Respondents have a claim for additional costs as a

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result of an injunction, the Court should deny the request for a bond. The Court “has

discretion to dispense with the security requirement, or to request mere nominal security,

where requiring security would effectively deny access to judicial review.” People of State

of Cal. ex rel. Van De Kamp v. Tahoe Reg'l Planning Agency, 766 F.2d 1319, 1325,

amended, 775 F.2d 998 (9th Cir. 1985).

Movants are students and a school that have no capacity to pay a bond. Movants

seek to enforce the requirements of the Kentucky Constitution and prevent irreparable harm

to the school and students. Ordering Movants to post a bond would frustrate its efforts to

protect the public.

II. THE COURT SHOULD GRANT A STAY.

This Court has the inherent power to give legal effect to the orders of the Court.

This power includes the power to stay an administrative decision pending review, to ensure

that the review is meaningful. The court in Green Valley Environmental Corp. v. Clarence

Clay, et al., 798 S.W.2d 141 (Ky. 1990), recognized the “inherent power” of a court to stay

an agency decision as a matter of judicial discretion and in the interest of administrative

and judicial economy. The court noted that the issuance of a stay by a reviewing court is

distinct from the power of that court to grant injunctive relief. Likewise, the court in Crady

v. Cranfill, 371 S.W.2d 640 (1963), recognized the “inherent power” of an appellate court

to “issue such remedial orders as are appropriate to maintain the status quo of a case

pending before it on review.” Id. at 645. Criteria for granting a stay are similar to criteria

for granting a temporary injunction: the likelihood of success on the merits, irreparable

injury if a stay is denied, substantial injury to the party opposing a stay if one is issued, and

18
the public interest. Id.

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Movants incorporate their arguments set forth in support of a restraining order and

temporary injunction here as well in support of a stay. In addition, the public has a great

interest in ensuring that the Movants, especially the students, are afforded Kentucky

constitutional protections and are not irreparably harmed by the actions of the Respondents

to preserve the educational integrity of the Commonwealth’s schools, student attendance

at schools especially in geographically isolated areas, and the community services provided

by schools like Cordia.

This Court should grant Movants’ motion for a stay and allow the Cordia School to

remain open and stop the transfer of students during the pendency of this case. This stay is

necessary to prevent the Respondents from continuing to cause irreparable harm to

Movants and from violating constitutional provisions to be free from arbitrary decisions by

their government, rendering Movants’ right to appeal meaningless.

CONCLUSION

For the foregoing reasons, Petitioners request that the Court grant a restraining

order, temporary injunction, and stay to prevent Respondents from closing the Cordia

School and forcing the transfer of 230 students and re-drawing Knott County’s school

boundaries. Movants are suffering immediate and irreparable harm if the school is closed

and the students are transferred to an alternate school.

19
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Respectfully submitted,

/s/ Clay Barkley


Clay A. Barkley
KBA # 93636
Randal A. Strobo
KBA # 92767
STROBO BARKLEY PLLC
239 South Fifth Street
Suite 917
Louisville, Kentucky 40202
cbarkley@strobobarkley.com
rstrobo@strobobarkley.com
Co-Counsel for Petitioners

Ned Pillersdorf
KBA # 54930
Pillersdorf, DeRossett, and Lane
124 West Court Street
Prestonsburg, KY 41653
(606) 886-6090
(606) 886-6148 (fax)
pillersn@bellsouth.net
Co-Counsel for Petitioners

20
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CERTIFICATE OF SERVICE

The undersigned certifies that copies of the foregoing by U.S. Mail on this the 26th day of
January, 2018:

Kevin C. Brown, Associate Commissioner


General Counsel
Kentucky Commissioner of Education
300 Sower Boulevard, 5th Floor
Frankfort, Kentucky 40601

KENTUCKY DEPARTMENT OF EDUCATION


300 Sower Boulevard, 5th Floor
Frankfort, Kentucky 40601

KENTUCKY BOARD OF EDUCATION


300 Sower Blvd., 5th Floor, Room 533
Frankfort, Kentucky 40601

KNOTT COUNTY BOARD OF EDUCATION


1156 Hindman Bypass
Hindman, Kentucky 41822

Andy Beshear, Attorney General


Office of the Attorney General
700 Capitol Avenue, Suite 118
Frankfort, Kentucky 40601-3449

/s/ Clay Barkley____________


Counsel Having Certified

21

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