Are you sure you can't apply without a teacher recommendation? Some schools will let you by with a recommendation from someone outside of the current school in a situation like this if you just tell them you're uncomfortable asking for a recommendation from current school and why.
polarbear is correct - we were at a private school that refused to give recommendation letters (school policy!). So, we got very detailed and well written recommendations from my DS's coaches, tutors and mentors. We told them that our school refused to give us recommendations and they were more than happy to help (while being amused that a 1st grader required a lot of recommendation letters to get into 2nd grade!).