For years, 10 charter schools in Akron, Cleveland and other communities paid about 95 percent of the taxpayer dollars they got to Akron-based White Hat Management to run those schools. When these Hope Academies and Life Skills centers decided to end their contracts with White Hat, the company maintained it owns virtually everything -- even student records -- that were paid for with the state funds.

White Hat says it is an independent contractor, so the money it made – and the school assets – are now private property. But Karen Hockstat, the attorney for the schools, argues White Hat has an ongoing public duty.

“You’re talking about a company that is not just providing a janitorial service, they’re not just providing busing or some finite service to a school district or another public entitity. They are stepping into the shoes of the school board, performing as public officials – educating our kids.”

So far, she’s lost that argument. The appeals court ruled that the money turned over to White Hat is no longer the public’s business.