BOISE, Idaho – In a major breakthrough for the proposed $685 million University of Phoenix purchase, an Ada County judge has dismissed an open meetings lawsuit against the State Board of Education. The ruling, delivered by Ada County District Judge Jason Scott on Tuesday, stated that the State Board had “reasonable belief” that the University of Idaho was competing with other potential buyers for Phoenix, justifying the closed-door discussions that took place. This decision marks a significant victory for Governor Brad Little and his appointed State Board members, while Attorney General Raúl Labrador experiences a setback.
The purchase of the University of Phoenix has been both complex and controversial, with university officials seeing it as a lucrative opportunity to generate millions of dollars in revenue for the University of Idaho. However, concerns about the financial risk, potentially reaching $10 million annually, have been downplayed. The ruling by Judge Scott removes a major obstacle in the path of the deal’s closure, which university officials had hoped would happen early this year.
The lawsuit was centered around a lesser-known section of Idaho’s open meetings law. The State Board, in collaboration with a University of Idaho lawyer, conducted closed executive sessions on multiple occasions to discuss the possible Phoenix purchase before publicly announcing their support in a vote. The closed meetings were justified under a clause that allowed for competitive purchases involving state agencies and public bidders from other states or countries.
During the trial, which lasted three days, Labrador’s legal team argued that the State Board did not request specific details about the competition, relying solely on U of I President C. Scott Green’s assessment of the marketplace. They further contended that the University of Arkansas’ rejection of a Phoenix purchase on April 24 altered the market dynamics. Nevertheless, the State Board’s legal team emphasized that competition was repeatedly mentioned in the discussions and that Phoenix was interested in partnering with a public buyer. They also argued that the belief that Arkansas was still in contention for the Phoenix acquisition was reasonable.
In a 15-page ruling, Judge Scott sided with the State Board and its deputy attorney general, Jenifer Marcus, stating that their continued belief in the competition between the University of Idaho and the University of Arkansas for the acquisition was reasonable under the circumstances. However, this ruling does not mark the definitive conclusion of the Phoenix purchase process. The deal still needs approval from the U of I’s accrediting bodies, and the funding for the purchase will be provided by a U of I-affiliated nonprofit.
The outcome of this case holds significance beyond the university’s purchase plans, as it represents a prominent win for Governor Little and his appointed State Board members, and a loss for Attorney General Labrador. As the U of I awaits final approvals, the implications of this ruling will be closely watched, and the story will continue to develop.
[This article has been updated to reflect the latest information on the case and ruling.]