Lawsuit Against Birmingham Southern Loan Dismissed: A county judge has dismissed a lawsuit brought by Birmingham-Southern College against Alabama State Treasurer Young Boozer III for rejecting its application for a $27 million public loan, a crucial lifeline for the struggling private institution.
The lawsuit, filed earlier this month, contended that Boozer’s denial was unexpected, considering the Alabama Legislature had established the loan program for private colleges, with a graduate from Birmingham-Southern playing a role in crafting the legislation. The college, facing a potential closure without state aid, accused Boozer of undermining the Legislature and acting in bad faith.
However, on Wednesday, the lawsuit seeking the disbursement of funds was dismissed by the county judge. Birmingham-Southern College expressed disappointment and is considering its options, including a potential appeal to the Alabama Supreme Court with a request for expedited briefing.
Birmingham-Southern President Daniel Coleman remarked, “While the Alabama Constitution provides for immunity to state officials, such immunity should not apply to those who act arbitrarily or capriciously, or in bad faith, or who have misinterpreted the law in question.”
The dismissal adds uncertainty to the future of Birmingham-Southern College, which highlighted the immediate risk of closure without the anticipated state aid. The legal battle continues, raising questions about the intersection of legislative intent and the discretion of state officials in supporting private institutions.