February 3, 2006
Court Allows Lawsuits Against Va. Colleges
The legal principle of state sovereignty does not protect four Virginia public colleges from being sued under federal bankruptcy law, the U.S. Supreme Court ruled last week.
In a 5-to-4 decision, the justices sided with Bernard Katz, an official in charge of liquidating the bankrupt Wallace's Bookstores Inc. He had sued the four state-run colleges — Blue Ridge Community College, Central Virginia Community College, New River Community College, and the Virginia Military