Judge to dismiss Birmingham-Southern’s lawsuit seeking state loan

Judge to dismiss Birmingham-Southern’s lawsuit seeking state loan

Montgomery County Circuit Judge James Anderson on Wednesday said he would dismiss Birmingham-Southern College’s lawsuit against State Treasure Young Boozer over Boozer’s denial of a $30 million loan request.

After a one-hour hearing, Anderson told lawyers and others in the courtroom that he sympathized with Birmingham-Southern’s position but said the law gave Boozer the authority to deny the loan.

Birmingham-Southern had claimed Boozer exceeded his authority and undermined the intent of the Legislature when he denied the college’s request for the loan, which school officials said they needed to keep the private institution open.

The Legislature created the Alabama Distressed Institutions of Higher Education Revolving Loan Fund this year in response to Birmingham-Southern’s requests.

Boozer turned down Birmingham-Southern’s loan application in an Oct. 13 letter. Boozer wrote that the college did not meet the qualification for the loan. Birmingham-Southern disputed that in the lawsuit.

Robert Battle, an attorney representing Birmingham-Southern, said the college would have a statement in response to the decision later on Wednesday.

Lawyers with the attorney general’s office represented Boozer in the case. Boozer was not at the hearing.

This story will be updated.