This qualitative case study explores student, parent, and teacher perceptions of school racial climate and its impact on students’ academic and personal lives at a charter middle school in South Los Angeles. The study also explores teacher handling of the impact of racial tensions at this school with a majority Latin@ student enrollment and a predominantly Black teaching staff. School climate refers to the perceived quality of interpersonal interactions among teachers, students, staff, and parents. A positive school climate is associated with increased academic achievement and decreased disciplinary problems. Conversely, schools wrought with interethnic conflict or a poor racial climate divert focus and resources away from student learning and toward chronic disciplinary problems and teacher attrition. This case study demonstrates how Black administrators handled displacement by a large immigrant Latin@ population by instituting a system of Black privilege to protect political and economic space. The massive immigration of Latin@s offered a critical opportunity for coalition building with Blacks. However, a competition-based framework emerged, rendering this case study a microcosm of missed opportunity in South Los Angeles and beyond.