If you mean was there a court case against Ms Birbalsingh and the Michaela school and was the Claimant legally aided then you're right.
Whether the claim had, on the face of it, merit but not sufficient to convince the court is different. I would interpret the facts, as outlined in the judgment, differently to you.
Ms Birbalsingh and Michaela's inability to recover their costs is not unique; it applies to everybody facing a legally aided party. She might have been better advised to settle.