Judge Rejects Bessemer School Board's $1 Million Lawsuit
Associated Press
2008-08-26 09:40:00.0
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A federal judge has dismissed an April lawsuit by the Bessemer school board seeking to recoup more than $1 million in interest and penalties the system paid in federal taxes.
Chief U.S. District Judge Sharon Lovelace Blackburn in Birmingham granted the federal government's request to dismiss the suit.
The board argued it is a state agency and should not have paid the penalties partly because of "intergovernmental immunity."
Blackburn disagreed, ruling Monday that the board is not immune because of the nondiscriminatory nature of the penalties and interest.
The board paid the interest and penalties in 2006. They stemmed from delinquent employment taxes that dated at least to 1997.
Board attorney David Sullivan said his clients are deciding whether to appeal.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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