California Ordered to Pay $4.5M in Fees After Losing Transgender Ruling

State engaged in 'litigation intransigence' in case over informing parents of child's gender status, judge says.

Apr. 1, 2026 at 7:31am

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A federal court has ordered California to pay $4.53 million in attorney's fees to lawyers who successfully challenged the state's prohibition against public schools informing parents of their child's transgender status. The ruling comes after the U.S. Supreme Court sided with parents who argued the state law violated their religious and due process rights.

Why it matters

The case highlights the ongoing legal battles over LGBTQ+ rights and parental rights, as well as the high costs states can face when they lose such cases. It also raises questions about how schools should handle sensitive issues of gender identity with students and their families.

The details

In 2023, two Southern California school teachers sued their district seeking an exemption from policies requiring them to inform parents of a student's transition status and pronouns. They were later joined by a group of Christian parents whose children had identified as transgender at school. The district court ruled in favor of the teachers and parents, but an appeals court put that order on hold while the state appealed. The U.S. Supreme Court ultimately ruled in favor of the parents' arguments that they have a right to 'guide the religious development of their children.' However, California is still fighting the case and recently filed a motion to change the injunction.

  • In 2023, two Southern California school teachers sued their school district.
  • Earlier this month, the U.S. Supreme Court issued a mixed ruling in the case.
  • On Monday, the federal court ordered California to pay $4.53 million in attorneys' fees.

The players

Thomas More Society

A conservative Catholic public-interest law firm that represented the plaintiffs in the case.

Judge Roger T. Benitez

The federal judge who ordered California to pay the $4.53 million in attorneys' fees, citing the state's 'litigation intransigence' in the case.

California

The state that was ordered to pay the attorneys' fees after losing the case over informing parents of their child's transgender status.

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What they’re saying

“If Plaintiffs' counsel spent time on the case that would normally be considered unnecessary, it was time most likely required to overcome the defendants' litigation strategy of resisting at all junctures.”

— Judge Roger T. Benitez, Federal Judge

What’s next

California has filed a motion to change the injunction blocking the state's prohibition on schools informing parents of their child's gender status, indicating the legal battle is ongoing.

The takeaway

This case highlights the high costs states can face when they lose legal battles over LGBTQ+ rights and parental rights, as well as the ongoing tensions between schools, families, and the government over how to handle sensitive issues of gender identity.