Former Birmingham Water board members sue Gov. Ivey in class action lawsuit

Two former members of the Birmingham Water Works board have filed a class-action lawsuit against the state of Alabama and local officials. Their lawsuit seeks compensation and reinstatement of the board, alleging an unlawful takeover of the utility.

The former board members, Brenda Lewis and William Muhammad, along with Central Alabama Water (CAW), are plaintiffs in the lawsuit. They claim that the state, Governor Kay Ivey, Lieutenant Governor Will Ainsworth, House Speaker Robert Bentley, Senate President Pro Tem Jabo Waggoner, and others were involved in an “unlawful and unconstitutional” takeover of the Birmingham Water Works Board (BWWB).

The lawsuit alleges that the defendants conspired to pass “SB330,” a bill that allowed for the takeover of the BWWB by the state. According to the plaintiffs, this legislation violated the Alabama Constitution and deprived the citizens of Jefferson, Shelby, and Blount counties of their voting rights regarding the water utility.

The former board members argue that the state’s control of the BWWB has affected its financial health and management. They claim that the state’s actions have caused a decrease in the board’s credit rating, resulting in significant financial consequences for ratepayers and potential rate increases.

The plaintiffs seek monetary compensation for damages related to the unlawful takeover, as well as reinstatement of the BWWB board members to their positions. They also demand that the state return all assets and funds taken from the BWWB and restore full control of the utility to its board members.

In response to the lawsuit, Governor Kay Ivey’s office issued a statement saying that the state “will vigorously defend itself against this frivolous legal action.” The statement emphasized that the state had acted within its legal authority in taking over the BWWB and that the legislation allowing for the takeover was “fully within the bounds of the Alabama Constitution.”

The lawsuit represents a significant legal challenge to the state’s control of the Birmingham Water Works Board. The outcome of the case could have far-reaching implications for the management and governance of the utility and may impact other aspects of water management and infrastructure in Alabama.

The plaintiffs are represented by the law firm of S&P. According to the firm’s attorney, the lawsuit aims to hold the state accountable for its actions and ensure that the citizens of Jefferson, Shelby, and Blount counties have a say in the management of their water utility.

The class-action lawsuit underscores the complexities and challenges involved in the governance of public utilities and the importance of transparency, accountability, and adherence to legal and constitutional principles. It raises questions about the balance of power between state and local authorities and the rights of citizens to participate in decisions that affect essential services and resources.