Litigation of handicapped students' and employees' rights showed a significant increase in 1987. The increase can be attributed primarily to the filing of a substantial number of cases to obtain attorneys' fees following the enactment of the Handicapped Children's Protective Act in 1986. Two major issues were raised in these cases: the availability of attorneys' fees for administrative hearings and the constitutionality of the retroactive application of the law. In a widely publicized case, the United States Supreme Court ruled that a teacher suffering from the contagious disease of tuberculosis was a "handicapped individual" within the meaning of section 504 of the Rehabilitation Act. While the Court did not address whether a person who is simply a carrier of a contagious disease is handicapped, the case will undoubtedly be paramount in interpreting the rights of victims of the acquired immune deficiency syndrome (AIDS). Cases are summarized under the following topics: (1) entitlement to services; (2) procedural safeguards; (3) placement; (4) related services; (5) discipline; (6) remedies; (7) statute of limitations; (8) state law; and (9) discrimination under the Rehabilitation Act, section 504. (MLF)