MONTGOMERY, Ala. (WIAT) — A lawsuit filed by Birmingham-Southern College against Alabama State Treasurer Young Boozer has come to an end.
On Wednesday, Montgomery County Circuit Court Judge James Anderson dismissed the college’s lawsuit over what the college argued was a wrongful denial of a loan to the school, adding that recently-passed legislation that created a loan program for “distressed institutions of higher education” gives Boozer discretion over who he grants a loan to.
The loan program bill was passed by the legislature this year and signed into law by Gov. Kay Ivey in June, designed specifically with BSC in mind.
Anderson said he sympathizes with the college, but is looking at the legislature’s language, past precedent and sovereign immunity in his decision, which protects state officials in certain cases.
“We are disappointed with this ruling and are exploring our options, which may include an appeal to the Alabama Supreme Court with a request for an expedited briefing,” BSC President Daniel Coleman said in a statement.
BSC, which has 731 students and 284 employees, has argued that without the full $30 million bridge loan or initial $16 million they were asking for in this lawsuit, their institution will not be able to stay open.
Lawyers for the college and the state would not comment immediately after the hearing.