The pep rally was underway as a South Carolina high school student headed to the bathroom. A teacher trailed him. The student is transgender, and she wanted to make sure he used "the right one," he said.

To him, the right one is the boys' bathroom, which he says he has used since seventh grade without incident. Then, in his senior year, school administrators told him he had to use the girls' restroom, he said. They also gave him the option to use the nurse's restroom.

When he exited the bathroom, the teacher did not say anything to him, but he knew from the "exasperated" look on her face that he was in trouble.

The next morning, he was called into the vice principal's office said told he was suspended for one day for using the boys' bathroom.

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Instead of returning to school less than three months before graduation, he enrolled in online classes for fear of being "outed." Now, he's threatening legal action against Horry County Schools to make sure other transgender students don't have to experience what he went through.

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It remains to be seen how lower courts in the conservative circuit will interpret the decision. In addition to school policy, it could impact legislation such as North Carolina's controversial law prohibiting transgender people from using public restrooms for the gender they identify with.

The decision created an opportunity to show that similar school district policies within the circuit are just as unconstitutional as Gloucester's policy, said Ilona Turner, legal director of the Transgender Law Center.

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CNN