This study examines discipline policy reform resulting from pressure that arose from a class-action suit, "Mark Stevenson v. Jefferson County Public Schools," alleging racially discriminatory discipline policies and procedures. The suit forced the school system and community in Louisville (Kentucky) to negotiate substantially revised discipline policies. The historical context of the case is first reviewed, followed by an indepth discussion of the litigation and its effects on the community. The second and third sections focus on policy revisions arising from the settlement, and on procedures for monitoring compliance with the settlement agreement. The new policies enhanced student rights and emphasized parental involvement and alternatives to suspension and corporal punishment. Statistical analysis of three years of suspension data indicates that implementation of the new policies has been irregular and inadequate, though some progress is reported. Black student suspensions remain disproportionately high, but the problem is evident in fewer schools. Statistical tables are included. (Author/TE)