Judge Dismisses Birmingham-Southern's $30 Million State Loan Lawsuit
ICARO Media Group
Montgomery County Circuit Judge James Anderson has dismissed Birmingham-Southern College's lawsuit against State Treasurer Young Boozer over the denial of a $30 million loan request. The decision came after a one-hour hearing, where Judge Anderson determined that Boozer had the authority to deny the loan in accordance with the law.
Birmingham-Southern had argued that Boozer exceeded his authority and undermined the intent of the Legislature when he rejected the college's loan application. The college claimed that the loan was necessary to keep the institution open.
In response to Birmingham-Southern's requests, the Alabama Distressed Institutions of Higher Education Revolving Loan Fund was created by the Legislature this year. However, Boozer turned down the college's loan application, stating that it did not meet the qualification criteria.
Birmingham-Southern President Daniel Coleman expressed disappointment with the ruling and said that the college is exploring its options, including a possible appeal to the Alabama Supreme Court. Coleman argued that state officials should not have immunity if they act arbitrarily, capriciously, or misinterpret the law.
While lawyers from the attorney general's office represented Boozer, he himself was absent from the hearing but issued a statement expressing satisfaction with the dismissal of the lawsuit and confirming that he had acted in accordance with the law.
Judge Anderson pointed out that the bill creating the loan fund gave the state treasurer the discretion to award loans to eligible colleges. He emphasized that even if Birmingham-Southern's factual claims about their qualifications were accurate, the law still granted the treasurer the authority to decide whether to award the loan or not.
With the dismissal of the lawsuit, Birmingham-Southern's request for $16 million from the $30 million loan fund for this academic year has been denied. The college had sought the first $8.8 million in November, but now it will have to consider alternative solutions to keep its doors open.
Representative Juandalynn Givan, who played a role in creating the Distressed Institutions fund, expressed anger over Birmingham-Southern not receiving the loan as intended. She acknowledged Judge Anderson's reasoning but criticized Treasurer Boozer for his lack of good faith in implementing the legislation.
Birmingham-Southern holds a significant place in the Bush Hill community, and its potential closure raises concerns about the impact on the city. Givan questioned what actions the city of Birmingham and the county commission are taking to prevent the college from following the fate of other closed institutions in the area.
The dismissal of the lawsuit marks a setback for Birmingham-Southern College, which now faces challenges in securing funds to maintain its operations. As the situation unfolds, the college, along with local entities and stakeholders, will need to strategize and determine the next course of action to preserve this historic educational institution.
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