The purpose of this study was to compare the legal costs of Texas public school districts during the school years 1980-81, 1981-82, and 1982-83 with the preventive law practices utilized by those districts. A survey was made of Texas superintendents' knowledge of school law. The data were contrasted with legal costs and the preventive law practices of the district. Two survey instruments were developed, and the case study approach was utilized. A survey was sent to the 1,101 Texas public school superintendents. The twenty-five item instrument was designed to solicit information regarding the amount of money spent by districts and the types of preventive law practices that school districts use to reduce legal costs. A legal awareness questionnaire was developed and administered to 72 of the 542 superintendents who responded to the first survey instrument. Three school districts were selected to be case study sites. The data from the instruments were analyzed to determine if a relationship existed between a district's legal costs and its preventive law practices, a district's legal costs and the superintendent's knowledge of school law, and a superintendent's knowledge of school law and the district's preventive law practices. The major conclusions of the study were as follows: (1) The larger the school district, the more money the district spends on legal costs. (2) Districts that incorporate preventive law activities do not necessarily have lower legal costs. (3) The differences in legal costs of a district and the types of preventive law activities utilized by the district are generally associated with district size, rather than with the absence of presence of the specific preventive law activity. (4) The legal knowledge possessed by the superintendent does not have an impact on the legal costs of the district. (5) The superintendent's knowledge of school law does not affect the number of preventive law activities used in the district.