Hunter
05/04/23
University of Iowa attorneys want a suit filed in federal court by their utility partner against them dismissed, saying the suit should instead be heard in State court.
The Gazette says the University of Iowa Energy Collaborative is a limited liability corporation made up of companies and donors who agreed to pay the UI $1.165 billion upfront in exchange for its commitment to pay the collaborative tens of millions annually to operate its utilities system for the next 50 years. The contract reportedly states that any disputes would be settled in State Court.
The lawsuit claims the university has breached the contract by refusing to pay money it owes; rescinding approval to repair the utility system; failing to file casualty insurance claims; and demanding payment for “unplanned” utility outages.
The university’s motion also claims the Collaborative failed to include the Board of Regents as part of the suit, which could set a dangerous precedent across the country by considering public universities in the same category as an ordinary private litigant.
A judge has set a May 24 deadline for the Collaborative to respond.