Clark Atlanta University can move forward with a lawsuit claiming that it owns parts of Morris Brown College that were sold to the city of Atlanta economic development agency two years ago, according to a state Supreme Court decision released Monday.
The university sued Invest Atlanta over the three properties, about 13 acres, claiming that when Morris Brown went into bankruptcy, ownership of the land should have reverted to Clark Atlanta based on a 1940 deed.
Clark Atlanta allowed Morris Brown, which at that time was facing foreclosure, to use the land for $1 as a charitable gift, for educational purposes. Facing another round of financial hardships in 2014, Morris Brown sold most of its campus including the the disputed properties, to Invest Atlanta and Friendship Baptist Church, to help pay pay off debts and get out of bankruptcy.
Clark Atlanta claimed that sale should have triggered return of its land from Morris Brown as the deed required.
The Supreme Court’s decision affirms Clark Atlanta’s reversionary rights to the land, Clark Atlanta officials said in a statement Monday. The university plans to continue its legal action in superior court, and declined to comment further. Officials from Invest Atlanta did not respond to questions by deadline.
Last year, Fulton County Superior Court denied a motion from Invest Atlanta to dismiss the lawsuit. The agency appealed, arguing that the lower court failed to consider the “broad and liberal” definition of “use” under Georgia law.
The disputed land includes the locations of the current Wilkes Hall, Herndon Stadium, the old president’s home, the old admissions house and the former Sara Allen Quadrangle, according to Clark Atlanta’s 2014 lawsuit.
"As noted, the restriction provides not only that the property be used for 'educational purposes' but then lists the fields of study which qualify as such 'educational purposes,' "read Monday's opinion from the Court. And the reverting of the property to Clark Atlanta "is triggered when grantee Morris Brown College itself ceases to use the property 'for the particular educational purposes set forth' in the deed."
“Consequently, in the present circumstances, sale of the property to Invest Atlanta does not qualify as Morris Brown College’s ‘use’ of the property as contemplated in the deed,” the opinion says.
Eloisa Klementich, President and CEO of Invest Atlanta, said it was reviewing the ruling and “We look forward to resolving all legal issues regarding this historic property in a way that preserves the legacy of the Atlanta University Center and catalyzes the revitalization of the Martin Luther King corridor. Invest Atlanta believes that the ownership under one entity would have ensured the MLK corridor redevelopment in a holistic and complementary manner.”
Eloisa Klementich, President and CEO of Invest Atlanta, said it was reviewing the ruling and “We look forward to resolving all legal issues regarding this historic property in a way that preserves the legacy of the Atlanta University Center and catalyzes the revitalization of the Martin Luther King corridor. Invest Atlanta believes that the ownership under one entity would have ensured the MLK corridor redevelopment in a holistic and complementary manner.”
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