A federal judge has thrown out a lawsuit from a now-dissolved charter school group against the Douglas County School District, saying the plaintiffs waited too long to sue the district for terminating its contract.

Milestone Academy, formed by a group of Douglas County residents, submitted a charter school application to the school district’s board of education in March 2016. The board conditionally approved the agreement for five years, with the school set to open in fall 2018. Milestone contracted with American Charter Development to acquire 38 acres in unincorporated Douglas County.

According to the lawsuit, the town of Castle Rock, which surrounded the proposed school property, signed off on the traffic plan. But the Douglas County Planning Commission asked the board of education to hold an additional hearing on Milestone’s site plan, citing concerns over traffic, access and public outreach.

On Sept. 5, 2017, the board adopted a resolution indicating it would “affirmatively prohibit” Milestone from proceeding. Milestone maintained that the charter school contract had not been terminated or revoked, but Douglas County informed American Charter Development that there would be no construction-related permit for the school.

At an Oct. 17 hearing before the board, board members adopted a resolution finding Milestone failed to meet one of its conditions by not submitting by deadline a location lease or purchase agreement, written financing commitment and approved traffic plan. The board declared that the charter no longer existed for Milestone and that the group “must cease and desist holding itself out as a valid charter school to Douglas County.”

Milestone and American Charter Development sued the Douglas County School District nearly three years later, in September 2020. They alleged the district violated their procedural rights and committed breach of contract, among other claims. The lawsuit also suggested that halting construction of Milestone was “a boon to those politicians seeking reelection the following month who sought to portray themselves as tough on charter schools.”

The school district sought to dismiss the case, claiming Milestone never pursued the dispute resolution or appeal process for the board’s decision. It also argued that Milestone had filed suit outside the two-year statute of limitations following the hearing of Oct. 17, 2017.

U.S. District Court Chief Judge Philip A. Brimmer agreed, explaining that the plaintiffs could file outside of the window only if the district had prevented them from suing in a timely matter or if there were “extraordinary circumstances.” Neither of those was the case, and Brimmer dismissed the lawsuit on March 3.

Milestone also lost a separate court case in Douglas County District Court, after American Charter Development sued the group for its own costs in developing the never-opened school. Milestone never responded to the lawsuit and a judge awarded $8.2 million to American Charter Development.

The case is Milestone Academy et al. v. Douglas County School District.