A ruling on trangender bathroom rules in Virginia, that could ultimately impact the high-profile debate, in North Carolina.

FOX's Eben Brown has the latest:

A federal appeals panel in Virginia says the Gloucester County, Virginia, school board discriminated against a transgendered teen boy when not letting the student use the boys' restroom because the student was born a girl.

Student Gavin Grimm sued the district over their rule, mandating students use restrooms corresponding to gender listed on birth certificates.

The ruling comes as the state next door, North Carolina, deals with outcry over state legislation restricting transgender use of public restrooms.

Eben Brown, FOX News.