No school board member, administrator, or teacher wants to see a student suffering from taunts of the student's peers, but with budget cutbacks, reductions in force, and increased class size, teachers and administrators are stretched too thin to easily identify, investigate, and remedy student-on-student harassment. But school districts must beware: They have yet to see a case where a court, and more important, a jury, has sided with a district where one of its officials had actual knowledge of student-on-student sexual harassment but failed to take any steps to address it simply because of the district's economic realities. There has been a tremendous increase in litigation against districts for alleged failures to adequately address student-on-student sexual harassment brought under Title IX of the Educational Amendments of 1972. In this article, the author discusses how to address sexual harassment issues and avoid litigation. The author describes preventative measures that can help address sexual harassment at an early stage.