Cahaba Riverkeeper, Inc., et al. v. Water Works Board of the City of Birmingham, et al.Annotate this Case
Cahaba Riverkeeper, Inc., Cahaba River Society, David Butler, and Bradford McLane ("the conservation parties") appealed a circuit court's dismissal of their action for declaratory and injunctive relief against the Water Works Board of the City of Birmingham ("the Board") and the State of Alabama, on the relation of Alabama Attorney General Steve Marshall. At the heart of this case was a settlement agreement executed by the Board and a former attorney general executed in 2001. In 1998, the City of Birmingham ("the City") and its then-mayor began exploring ways to increase funding for its school system, and ultimately sold the assets of the system, including land, reservoirs, and filtration systems, to a private investor to retire debts and to establish an education trust fund. In 2000, the City's newly elected mayor sought to establish a new arrangement in which the Board would operate as a City department. Members of the city council opposed that plan, wishing to keep the Board independent and have it buy back the system assets. In July 2000, the city council approved an ordinance to transfer the assets back to the Board. The mayor later filed suit against the Board and city council in an attempt to prevent the Board from repurchasing the assets. The State Attorney General intervened and counterclaimed against the mayor and city council, all of which ended in the settlement agreement. In their complaint here, the conservation parties alleged that, in 2016, a parcel of land "subject to the settlement agreement was sold for a gas station after unanimous approval by the Board." In 2021, the conservation parties contended the Conservation Easement Agreement ("the CEA") did not establish a valid conservation easement that fulfilled the requirements dictated in paragraph 7 of the settlement agreement. The Alabama Supreme Court found that based on paragraph 6 of the settlement agreement, the conservation parties had a third-party right to seek enforcement of the terms of paragraph 7 of the settlement agreement. The Court also concluded the conservation parties stated a viable justiciable controversy with respect to whether the Board fulfilled its obligation in paragraph 7 of the settlement agreement "to place a conservation easement on the System's real estate described in paragraph 7 of the Acquisition Agreement ...." Therefore, the circuit court's judgment dismissing the conservation parties' claims against the Board is reversed, and the cause is remanded for further proceedings.