Federal judge throws out ‘racial discrimination’ lawsuit against Central Alabama Water: ‘A generalized grievance’

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October 19, 2026

A federal judge on Thursday threw out Birmingham Mayor Randall Woodfin’s lawsuit against Governor Kay Ivey over the law that broke up the Birmingham Water Works Board, ruling the city never showed it was harmed by the creation of Central Alabama Water.

U.S. District Judge Anna Manasco dismissed all nine counts in Woodfin, et al. v. Ivey, et al. for lack of standing. The city, Woodfin and several Birmingham City Council members sued Ivey, Lt. Governor Will Ainsworth, Attorney General Steve Marshall and the new regional board.

Manasco wrote that the plaintiffs brought the court political complaints, not legal injuries.

“A generalized injury cannot provide standing,” Manasco wrote. “The Supreme Court has been clear that a generalized grievance, ‘no matter how sincere,’ cannot support standing.”

Woodfin sued in May 2025, before Ivey had signed the bill. The complaint said the law “constitutes blatant racial discrimination” against a majority-Black city.

“To us, it is clear that SB330 is unconstitutional on its face,” Woodfin said at the time.

“This is a taking of power from the local rate payer by Republican politicians in Montgomery,” he said the day Ivey signed it.

The court never reached any of that. Birmingham could not clear the first hurdle in federal court.

Outgoing-State Sen. Dan Roberts (R-Mountain Brook) and State Rep. Jim Carns (R-Vestavia Hills) carried SB330 through the Legislature.

Governor Ivey signed it on May 7, 2025, as Act 2025-297. The law dissolved the Birmingham-controlled board and replaced it with seven directors, two chosen by Birmingham and the rest appointed by the Governor, the Lieutenant Governor, the Jefferson County Commission president and Shelby and Blount counties. The board voted that June to do business as Central Alabama Water.

“I never hear anyone that’s happy with the Birmingham water system,” Carns said while the bill was moving.

Central Alabama Water is the largest water system in the state. It serves roughly 770,000 people in Jefferson, Shelby, St. Clair, Blount and Walker counties.

Thursday’s ruling is the second federal loss for opponents of the overhaul. In August, Manasco dismissed with prejudice Muhammad, et al. v. Waggoner, et al., a class action from former board members William Muhammad and Brenda Lewis, ruling from the bench that the plaintiffs’ desire to undo the Legislature’s work was not enough to carry a lawsuit.

“That alone is not the making of a sufficient complaint,” Manasco said at that hearing.

Shan Paden, general counsel for Central Alabama Water, said the utility was pleased.

“The Court’s action lifts a heavy burden and confirms that Alabama Act No. 2025-297 was lawfully passed by the Alabama Legislature and created a new regional water utility,” Paden said. “We have maintained that our legal position was supported by facts and the law and this ruling validates our claims. We will continue building a world-class water utility that focuses on serving its customers.”

Woodfin’s case was dismissed without prejudice, which leaves the city room to refile. Birmingham officials said Thursday evening that the city’s legal team is reviewing the order. A separate class action from a Birmingham resident, filed in September, remains pending before Manasco.

Grayson Everett is the editor in chief of Yellowhammer News. You can follow him on X @Grayson270.