Montgomery County circuit judge dismisses Birmingham-Southern’s lawsuit against state treasurer

A Montgomery County circuit judge has dismissed Birmingham Southern’s lawsuit against Alabama State Treasurer Young Boozer.

Judge James Anderson said he sympathizes with the college’s position but moved to dismiss the case based on a lack of jurisdiction to order the treasurer to issue the loan.

Birmingham Southern College sued Boozer, claiming that he unfairly denied it a $30 million state loan.

The Legislature passed a bill this year to enact the Alabama Distressed Institutions of Higher Education Revolving Loan Program which Gov. Kay Ivey signed that would help financially-troubled higher education institutions like Birmingham Southern, even though it’s a private school affiliated with the United Methodist Church.

The program gives the power to approve loans to the State Treasurer, and Birmingham Southern says Boozer denied its request even though it says it has met the requirements for getting a loan.

Boozer denied the allegations made by the college that he has a grudge against BSC, that the school met the requirements of the law, and that he acted in bad faith.

Birmingham-Southern President Daniel Coleman said in a statement provided to Action 8 News that the college might try to appeal to the Alabama Supreme Court.

Action 8 News has reached out to the State Treasurer’s office for reaction to the dismissal. We will pass that along as soon as it becomes available.