Finding the lawsuit frivolous, a United States district court judge dismissed Peloza's lawsuit on January 16, 1992, awarding attorney's fees to the defendants. Peloza was reassigned to teach physical education instead of science. On October 4, 1994 the Ninth Circuit Court of Appeals upheld the dismissal of Peloza's lawsuit, but reversed the award of attorney's fees. The Supreme Court of the United States refused to hear Peloza's appeal in 1995. Peloza was relocated to teach physical education in the Capistrano Unified School District at Newhart Middle School. He later retired due to an injury among other reasons.