To help public schools minimize litigation, this newsletter recommends constitutional and legal training for public school officials and examines relevant court cases involving school official liability, intelligence tests, and religion in the schools. According to the authors, the Maine v. Thiboutot and Owen v. City of Independence cases establish school officials' legal and financial liability under both constitutional and statutory law. They also discuss contrasting decisions on racial bias in intelligence testing in the Larry P. v. Riles and P.A.S.E. (Parents in Action on Special Education) v. Hannon cases. Examination of the Supreme Court decision in Stone v. Graham, invalidating a Kentucky state law requiring posting of the Ten Commandments, suggests implications for other religious issues in public schools. A related case, Florey v. Sioux Falls School District 49-5, covers the legality of such Christmas season practices as singing carols in public schools. (RW)