Former Birmingham Water Board Members Sue Over Utility Takeover

Lawsuit alleges unconstitutional seizure of water utility by state officials

Published on Feb. 21, 2026

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Two former members of the Birmingham Water Works Board, along with ratepayers, have filed a class-action lawsuit challenging what they describe as an unconstitutional and racially motivated state takeover of the utility. The lawsuit names several state and local officials, including the governor, and seeks over $1.6 billion in compensation along with an injunction to restore the previous board composition.

Why it matters

This case highlights concerns over the state's authority to seize control of a locally-managed public utility, potentially overriding the will of Birmingham residents who built and funded the system for decades. The lawsuit alleges the takeover was unconstitutional and disproportionately impacted the predominantly Black city of Birmingham.

The details

The lawsuit claims the state unconstitutionally seized control of the Birmingham Water Works Board (BWWB), which is now operating as Central Alabama Water (CAW). The plaintiffs argue the BWWB was a privately incorporated public benefit corporation, not a government agency, and that Birmingham residents had 100% control over the utility they capitalized and financed. The complaint targets legislative acts, specifically SB330, which the plaintiffs say constitutes an unconstitutional taking without just compensation and an oppressive act that strips Birmingham's authority.

  • The lawsuit was filed on Friday, February 21, 2026.

The players

William Muhammad

Former Birmingham Water Works board member.

Brenda Lewis

Former Birmingham Water Works board member.

Governor Kay Ivey

Governor of Alabama named in the lawsuit.

Central Alabama Water (CAW)

The water utility that took over operations from the Birmingham Water Works Board.

Richard Rice

Public Interest Attorney and founder of The Rice Firm, representing the plaintiffs.

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What they’re saying

“Water is life. The systems that distribute it and own it are the foundation of public health, economic development, and generational opportunity. SB330 was not a reform but rather it was a transfer of power. It removed local control from the very citizens who built, funded, and sustained this system.”

— Richard Rice, Public Interest Attorney and founder of The Rice Firm (wvtm13.com)

“Only in Communist countries like Cuba and China are governmental officials allowed to legally perpetuate the firing of the board members and the confiscation of privately incorporated and funded and managed corporate assets previously controlled by the fired board members for the so-called benefit of the public good or the benefit of the state, without compensation equal to the fair market value of the property and property rights taken.”

— Richard Rice, Public Interest Attorney and founder of The Rice Firm (wvtm13.com)

What’s next

The case is assigned to U.S. District Judge Anna M. Manasco, who will determine whether to grant the plaintiffs' request for an injunction to restore the previous Birmingham Water Works Board composition.

The takeaway

This lawsuit highlights the ongoing tensions between state and local control over critical public infrastructure, as well as concerns about the disproportionate impact on predominantly Black communities. The outcome could set an important precedent regarding the limits of state authority to seize control of locally-managed utilities.