Atlanta - The Georgia Supreme Court ruled in a 4-3 decision on May 23 that Shorter College acted illegally in 2003 when it took action to sever ties with the Georgia Baptist Convention. The ruling affirms the state convention's argument that the college did not have legal grounds to separate itself from Georgia Baptists.

The state's highest court upheld the Georgia Court of Appeals' decision in March 2004, when all three judges hearing the case ruled that Shorter had acted illegally by dissolving itself and transferring all its assets to a new corporation with a self-perpetuating board of trustees.

The Supreme Court of Georgia heard the case on February 14 when attorneys representing the Convention and Shorter College presented their arguments. The news of the verdict was received with gratitude by the Convention leadership.

GBC Executive Director J. Robert White commented, "We are very grateful for this decision. The case will have a significant impact on not-for-profit corporations in Georgia and should positively influence relationships between state conventions and their institutions."

 

Potential nationwide impact

The three-year-old struggle between the Convention and the educational institution has been followed closely by other state conventions as they evaluate similar longstanding relationships with their agencies.

Shorter College has been embroiled in controversy since November 2001 when the school leased all its assets and operations to Shorter College Foundation, Inc., thereby creating a self-perpetuating board of trustees that would control the college. Upon learning of the lease in January 2002, the GBC, which had invested more than $26 million in the institution, immediately cut off funding. The college then rescinded the lease.

Collaboration between the school and the Convention regarding the trustee selection process further eroded when Shorter's Board of Trustees amended their bylaws on May 31, 2002, to gain additional control over the trustee process. In accordance with its new bylaws, the college then selected 16 candidates to fill eight trustee positions and submitted its list to the GBC.

The Convention claimed the new bylaw amendment was illegal and in conflict with Shorter's charter. At its annual meeting on November 12, 2002, the GBC rejected the college's proposed candidates, and instead elected eight others to server as trustees. Shorter's May bylaw amendment was later declared void in the court case.

 

A culmination of legal battles

Shorter's efforts to separate from the Convention continued and on November 22, 2002, its Board of Trustees voted to sue the Convention and the Georgia Baptist Foundation seeking funds which the Convention had withheld until the situation could be resolved.

That is when the litigation began. The decision by the Georgia Supreme Court is the culmination of almost two and one-half years of legal battles.

Shorter has 10 days to ask the Georgia Supreme Court to reconsider the case. If the Court refuses to reconsider the case, the decision will be final.