The ACLU's Children's Rights Project had filed the suit on behalf of the 16 children, in a bid to dramatically change the city's Department of Human Services and transform the way the city cares for abused and neglected children.
In his order, Kelly said the ACLU had failed to demonstrate that the problems of the 16 children were typical of difficulties experienced by the more than 6,000 children the city's Department of Human Services has placed in foster care.
The ACLU said it was unsure if it would appeal.
The suit alleged that state and local officials were systematically denying thousands of the city's abused and neglected children their rights guaranteed by the U.S. Constitution and state and federal child-welfare laws.
It said that more than 6,000 city children in foster care, group homes and institutions were not receiving adequate care or protection, and that the state had failed to provide DHS with the necessary money or adequate oversight to ensure compliance with state and federal child-welfare laws.
ACLU officials were surprised because the Children's Rights Project has successfully brought similar class-action suits against child-welfare agencies in cities and states across the country.
Stefan Presser, legal director of the Pennsylvania ACLU, said Kelly's
finding ran contrary to decisions in those cases.
But Jerome J. Shestack, an attorney who represents Gov. Casey and other state defendants, said the state had argued from the outset that the case did not meet the federal standards for a class action.
"I am pleased that the commonwealth's position was sustained," Shestack said last night when he learned of Kelly's ruling. "It was our view that the criteria for class action was not met in this case."
The ACLU suit took two years to compile and was drawn up with the cooperation of unions at DHS, some foster-care agencies and local hospital officials.