A federal court judge is holding a hearing Friday to decide whether to temporarily restrain actions at Alabama’s largest water utility.
A ruling issuing a temporary restraining order could bring back workers who were part of a mass layoff last month and prevent future moves that could affect Central Alabama Water’s structure and governance. The hearing, which is open to the public, will take place at 1:30 p.m. in the Robert S. Vance Courthouse in Birmingham.
“I'm just pleased that the court has prioritized the case and set us for hearing as quickly as the court did,” said Richard Rice, an attorney representing two former members of the utility’s board of directors.
The motion for a temporary retraining order makes 11 requests, and U.S. District Court Judge Anna Manasco could selectively deny or grant each one, said Calvin Grigsby, another attorney representing former board members William Muhammad and Brenda Lewis. He said requests related to terminated employees are key.
CAW has asked laid-off employees to sign an agreement surrendering their rights to sue in exchange for eight weeks of severance pay, Rice said. A federal law requiring employers with 100 or more employees to provide at least 60 days’ notice of layoffs affecting 50 or more workers at a single site might come up during the hearing, he said.
The requests are part of a lawsuit that challenges the constitutionality of Alabama laws passed in 2015, 2016 and 2025 that Grigsby said resulted in an illegal state takeover of what was then the Birmingham Water Works. The temporary restraining order could block further changes at the utility while the court considers the larger case, he said.
In addition to the mass layoff cutting a quarter of the utility’s staff, a new CEO replaced its entire senior management team late last year, and the new board of directors approved a resolution that significantly expands the CEO’s authority to act without board oversight.
James Davis, an attorney representing the governor and other defendants in the case, said the hearing also will be a status conference in which the judge could weigh in on other motions in the case and in a lawsuit city of Birmingham officials filed that also challenges the 2025 law. One motion is a request to combine the two suits.
“There'll be two cases under consideration,” Davis said. “Judge Manasco is assigned to both cases, so she's going to take up issues with both cases.”
In a written response to the motion for a restraining order, defendants argue the judge should deny it because issues it brings up, including those surrounding employees, differ from allegations in the overall case. They also say there is no emergency because the challenged laws were implemented 10 years ago and 10 months ago, and they claim no evidence supports the request.
All parties to the lawsuit will have a chance to address the court, Rice said.
The judge could rule from the bench on Friday, Rice said, or her decision could come later.
