The Georgia Supreme Court is hearing oral arguments Monday morning in a case involving a dispute over ownership of three Morris Brown College properties.
The embattled historically black college and member of the Atlanta University Center filed for bankruptcy in 2012, facing $30 million in debts. In efforts to pay off its debts and regain its accreditation, Morris Brown sold most of its 37-acre historic campus property last year to Invest Atlanta, the city's economic development agency, and Friendship Baptist Church for $14.6 million.
Clark Atlanta University sued, claiming that when Morris Brown when into bankruptcy, ownership of three of its properties — consisting of about 13 acres — reverted to Clark based on a 1940 deed requiring the land be used for educational purposes.
A Fulton County Court refused to dismiss Clark Atlanta’s claim to the land, which Invest Atlanta appealed. The agency is arguing that the use restriction in the deed only applies to one of the three properties, and that the lower court failed to consider the “broad and liberal” definition of “use” under Georgia law.
Cases before the Georgia Supreme Court are usually decided within six months of oral arguments, according to court information.
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