Central Auditory Processing Disorders or there is Visual Processing Disorders. Basically it comes from childhood illnesses. The most common being chronic ear infections and allergies especially sinus allergies. It's believed a substancial portion of the sensory system {Inner Ear } is damaged by these illnesses or conditions. This site offers a good explaniation and description.
The treatment is treat the medical condition doing the damage {allergy, ear infection, ect} and some class room modifications. In more severe cases it can get complicated as motor skills and coordination are effected as well.