Bizarre event - Indian diplomat's daughter to sue NYC, school

This news item from Rediff which I had no clue about and read only moments ago is bizarre in so many ways. I am not sure whether there is a precedent to this, but I thought that families of diplomatic corps did have some privileges. Apparently not.

Does anyone know if say, the children of some US diplomat in India ever got stuck in similar circumstances and if so, how they were treated?

After the searching of at least one Indian diplomat not too long ago by the TSA ruffled feathers, this one is bound to agitate a lot of people in India, at the least.