we are not going to isolate her from other kids, I just don't think the daycare provider was using due diligence when she knew other kids under her care had lice. she keeps all the kids coats, blankets, etc. piled on a bench by the door. and I don't think that I should have to pay extra fees for removing her from the situation. 200 dollars is a lot of money for our family, and I just want to know if her claim will hold up in small claims court or not...
Whether you have a claim that will hold up against the daycare demands for $200 will be determined in large part by the contract you have with the daycare provider.
I agree that two hundred dollars is a lot of money for every family - but it is also a lot of money for a business like a daycare. That is why daycare providers have parents sign contracts - so kids are not withdrawn on a whim, leaving the daycare without necessary kids and funds to continue.
If you are relying on head lice as the unsafe condition that will allow you to break the contract, the facts on head lice will not support you in this.
If you are concerned about your child having head lice twice, however, and you believe it is because the kids' coats, blankets, and other personal possessions are piled on a bench by the door, a reasonable solution seems to me to be to address this with the daycare provider. Suggest that kids' belongings be kept separate and that the premises be sterilized.
NOT that this will prevent lice from spreading from kid to kid, though. Young kids tend to like to hug, or huddle, or wrestle with each other. It's what they do. Lice are often just an icky consequence of kids being kids.