ALBUQUERQUE, N.M. (AP) — The New Mexico Supreme Court on Thursday cleared the way for an anti-discrimination lawsuit to proceed against the state’s largest school district, ruling that public schools and universities can be sued for discriminatory conduct under the New Mexico Human Rights Act.

The ruling stems from a 2018 case in which a high school teacher in Albuquerque was accused of cutting off one Native American girl’s hair and asking another if she was dressed as a “bloody Indian” during class on Halloween. That 16-year-old Navajo student was in a costume and had fake blood on her cheek.

Outrage over the girls’ treatment prompted legislation in New Mexico and elsewhere to prohibit discrimination based on hairstyle and religious head garments.

“The NMHRA’s protections against numerous forms of discrimination must be read against the backdrop of this state’s unfortunate history of race-based discrimination, including that history transpiring within our public schools,” the court wrote. “The intent to prohibit discrimination in public schools has been apparent since the inception of statehood.”

The ruling affirmed a 2023 decision by an appellate court and concluded that public schools are a place of “public accommodation” under terms of the state’s anti-discrimination law. The court wrote that public schools do not restrict their services in a way that makes their use private, and it noted that the state constitution mandates that public schools in New Mexico be open to all children.

The justices also overturned a 1981 opinion stating public universities were not a public accommodation when it came to the “manner and method” of administering academic programs. The question about universities was raised in the appeal.

The legal wrangling began when the American Civil Liberties Union of New Mexico sued Albuquerque Public Schools and a teacher over allegations of discrimination and fostering a hostile learning environment.

English teacher Mary Jane Eastin was dressed up for Halloween as what the lawsuit described as “a voodoo witch” and initiated a game in which she would ask students questions, rewarding those who answered correctly with marshmallows while giving dog food to those who didn’t.

At some point, Eastin asked a Native American student whether she liked her braids and then cut off about three inches with scissors, sprinkling the hair on her desk, the suit alleges.

Eastin also was accused of asking another student, plaintiff McKenzie Johnson, if she was dressed as a “bloody Indian.” Johnson’s mother later told reporters that her daughter was dressed for Halloween as Little Red Riding Hood, with a red paw mark on her face. Johnson said she no longer felt welcome at school.

She said in a statement issued Thursday that she feels “validated” by the ruling.

“No student should endure discrimination or disrespect in the classroom,” Johnson said. “I hope it serves as a wake-up call for educators to prioritize cultural sensitivity and create inclusive environments where every student feels valued and respected.”

The school district’s superintendent publicly apologized and told parents that Eastin would not return to Cibola High School.

The school district was reviewing the latest court ruling and planned to make a statement Thursday. Eastin’s attorney did not immediately respond to an email seeking comment on the ruling.