Sun Coach will transport only special needs students in South Allegheny as contract dispute continues

Special needs students who attend school programs outside of the South Allegheny School District will have busing to transport them to their respective facilities for the time being, but not the rest of the district’s 1,700 students.

The school district and Sun Coach Lines reached a partial resolution during a court hearing on Tuesday before Allegheny County Common Pleas Judge John McVay. The judge asked both parties return to mediation to try to work out the dispute that revolves around $800,000 in unpaid transportation bills.

On Friday, Sun Coach Lines, which has provided busing for the district for 25 years, terminated a contract alleging that it was owed payment from mid-March through May and again in September.

The district, which was forced to return to online-only school on Monday because of the abrupt termination, argues that it should not have to pay for the months when schools were closed because of the covid-19 pandemic since no students were transported during that time.

Sun Coach contends the parties have a bulk rate contract, and that South Allegheny is obligated to pay whether services are rendered are not.

During a two-hour hearing before McVay, attorneys for both sides argued over whether an emergency injunction ought to be entered prohibiting Sun Coach from refusing to provide service.

In the end, McVay said he would not rule on the injunction until a later date. Instead, he wanted to address his concerns that some students with special needs would not be able to learn virtually and that they needed to attend their school programs in person.

Along those lines, both parties agreed to an interim order, allowing Sun Coach to transport students in the district who attend one of 17 different special needs schools — from The Blind School to Pressley Ridge to The Children’s Institute — at a rate of $315.21 per bus per day.

Attorneys for Sun Coach and South Allegheny went to mediation on Jan. 19, but disagree on the outcome there. South Allegheny’s attorneys said they thought progress was made, while Sun Coach’s lawyer said the district walked out and never responded to their inquiries afterward.

Attorneys for both sides got heated during Tuesday’s arguments, taking shots at one another’s credibility and behavior.

Steven Engel, who represents the district, said Sun Coach was playing a “high-stakes game of chicken,” and trying to use the threat of canceled service to force payment.

Ray Middleman, who represents Sun Coach, called the district “arrogant.” He referred to their position as “horse hockey.”

At one point, the lawyers bickered. McVay cut them off.

“I’m done,” he said.

If mediation proves unsuccessful, McVay said he would schedule a hearing on the motion for an injunction.

Engel argued that he believes the district will succeed in their case and told McVay that the students, who are being forced to do online learning, are being irreparably harmed by Sun Coach’s refusal to transport them.

But Middleman countered that the irreparable harm is being caused to his clients.

“My client is going to go out of business, and there can be no greater irreparable harm than that,” he said. “They created the problem. They could fix this probably by paying under the contract.”