Tuesday's finding means the case against the Emerson Board of Education will continue.
The division says the school district failed to effectively deal with continued verbal, physical and cyber harassment of the male student between 2002 and 2007. The student, who is identified only as J.C. Jr., attended junior and senior high school in Emerson.
Allegations include assaults, threats of violence, name-calling and derogatory remarks.
The school district has denied the student was the victim of discrimination and says the district dealt with all incidents accordingly.