Opinion ID: 785104
Heading Depth: 2
Heading Rank: 2

Heading: Proceedings Concerning the Settlement Agreement

Text: 27 After lengthy negotiations, all of the Defendants, the United States, and the lead Private Plaintiff (Congressman Bennie Thompson), 10 on behalf of both himself and the Private-Plaintiff class, reached a settlement agreement. By its terms, [j]udicial approval of [the] Agreement is to relieve the Board, and all other defendants, of any further obligations under the remedial decree. Further, the only obligations of the Board, and other defendants, arising out of or related to the Ayers litigation will be those specified in [the] Agreement. We describe below the major obligations contained in the Agreement.
28 Under the agreement, the State will provide special funding in the amount of $500,000 annually for five years (from 2002-2006) and $750,000 annually for five additional years (from 2007-2011) to supplement the need-based financial aid presently available to summer program participants. 11 Further, the agreement obligates the Board to widely publicize both the opportunity to enroll in the summer remedial program and the availability of financial aid for program participants. 12
29 The agreement provides for the establishment, continuation, or enhancement of a variety of academic programs at Alcorn State, Jackson State, and Mississippi Valley State. 13 Further, beginning with fiscal year 2002, annual appropriations are to be provided to the historically black universities for seventeen years, in the total amount of $245,880,000, to fund the numerous academic programs detailed in the agreement. 14
30 The agreement establishes both a publicly funded and a privately funded endowment for the benefit of Alcorn State, Jackson State, and Mississippi Valley State. Mississippi will create the public endowment, which will consist of $70 million, over the course of fourteen years. Additionally, the agreement requires the Board to use its best efforts over a seven-year period to raise $35 million for the privately funded endowment. 31 Initially, the endowments will be managed by a seven-person committee composed of the presidents of the historically black universities, the Commissioner of Higher Education, two members of the Board, and a member to be agreed on by the other members. The income from both endowments will be allocated 28.3% to Alcorn State, 43.4% to Jackson State, and 28.3% to Mississippi Valley State, with the schools being required to use the funds for other-race 15 marketing and recruitment, including the employment of other-race recruiting personnel and the award of other-race student scholarships. The schools may also expend the endowment income on the academic programs provided for in the agreement. 32 Alcorn State, Jackson State, and Mississippi Valley State will each receive its pro rata share of the endowments when the institution attains a total other-race enrollment of ten percent and sustains that enrollment for three consecutive years. After obtaining full control over the endowment funds, the historically black universities may use the income for sound academic purposes such as faculty compensation, academic program enhancements and student scholarships.
33 The agreement authorizes various capital improvements, at a total cost of up to $75 million, at Alcorn State, Jackson State, and Mississippi Valley State.
34 According to the agreement, the funding necessary to implement the agreement's provisions supplements the usual appropriations made to the state-university system and does not supplant normal funding for Alcorn State, Jackson State, and Mississippi Valley State.
35 Acknowledging that Jackson State presently offers a broad array of academic programs and that its service area extends beyond the Jackson, Mississippi, metropolitan area, the Board agrees that Jackson State should be recognized as a comprehensive university. The additional programs, facilities, and other resources to which comprehensive recognition entitles Jackson State are those provided for in the agreement.
36 Under the agreement, the attorneys for the Private Plaintiffs will receive a total of $2.5 million for fees, costs, and expenses. Additionally, the agreement states that 37 The class representative (Congressman Thompson) and Class counsel Byrd, Derfner and Pressman specifically represent that North Mississippi Rural Legal Services, The Center for Law and Education, and Alvin O. Chambliss, Jr. have knowledge of these provisions (i) that the Ayers defendants' obligations for attorneys' fees, costs and expenses will be fully satisfied on payment of $2,500,000 ... and (ii) that no present or former counsel for the Class, or member of the Class, may seek attorneys' fees, costs and expenses other than as set forth in this Agreement.
38 The agreement obligates the Board to report annually to lead counsel for the Private Plaintiffs and counsel for the United States on the agreement's implementation. In addition, it expresses the parties' decision to submit to the exclusive jurisdiction of the district court any dispute relating to the agreement. Also, the agreement will not become final until its approval is no longer subject to further appeal or judicial review.
39 Unhappy with the relief provided for in the agreement, Appellants filed a motion to opt out of the Private-Plaintiff class. After holding a two-day evidentiary hearing, the district court denied their motion. See Ayers v. Musgrove, No. 4:75CV009-B-D, 2001 U.S. Dist. LEXIS 19730, at ,  (N.D.Miss. Nov. 26, 2001). 40
41 Several months after it ordered that notice of the proposed settlement be published in newspapers throughout Mississippi, the district court conducted a fairness hearing, receiving testimony from proponents of and objectors to the settlement. See Ayers v. Musgrove, No. 4:75CV009-B-D, 2002 WL 91895 (N.D.Miss. Jan. 2, 2002). The district court acknowledged that it had heard persuasive arguments both for and against approving the settlement. Id. at . 16 Despite having concerns about the proposed settlement, including its high cost and long duration, the district court expressed a preference for ending this case through agreement of the parties. Id. at . But it worried that none of the parties involved had the authority to appropriate the substantial sum necessary to fund the proposal. Id. at . Accordingly, the district court stated that — if the Mississippi Legislature would endorse the agreement and agree to fund it — the court would approve the settlement. Id. at . 42 After the district court received a concurrent resolution evidencing the Legislature's support for and agreement to fund the settlement, the court issued a final judgment approving the settlement. According to the district court, 43 [I]f the State of Mississippi through its elected representatives, the policymakers of the State, wants to go further in the enhancements to the historically black institutions than called for by the court — and they have advised the court they do — then their actions will be given precedence. It is not illegal to do more than that required by the Constitution. 44 Ayers v. Musgrove, No. 4:75CV009-B-D, slip op. at 2, 2002 WL 32127613 (N.D.Miss. Feb. 15, 2002). The court's decision, inter alia, specified that (1) this suit is a class action certified under Rule 23(b)(2); (2) the settlement agreement is incorporated by reference into the final judgment; (3) the agreement affords the Class Members considerable relief in light of the established law of this case, the present stage of these proceedings and the range of possible recovery through further litigation, and is, in all respects, fair, reasonable, adequate and in the best interest of the Class; and (4) all claims relating to this controversy are dismissed with prejudice. 17 Id. at -4. In addition to appealing the district court's final judgment approving the settlement, Appellants challenge the district court's denial of their motion to opt out of the Private-Plaintiff class. 18