Tarrant County College trustees approved $3.8 million to negotiate a settlement agreement over an ongoing breach of contract lawsuit.\u00a0<\/p>\n
Blackboard T&L LLC, formerly known as Anthology Inc., sued the college<\/a> in 2024 for more than $23 million because it said TCC did not meet contractual expectations to terminate their 10-year contract early.\u00a0<\/p>\n \u201cThe proposed settlement agreement is intended to bring finality to the dispute while allowing the college district to continue focusing its resources on serving students, faculty, staff and the community,\u201d TCC general counsel Antonio Allen said.<\/p>\n A Blackboard spokesperson did not respond to a request for comment.<\/p>\n Signed in June 2022, the agreement was to provide the college with a planning project for an enterprise resource planning software and services. While it permitted TCC to terminate early without a cause, the contract stated the college had to provide Anthology with a 60-days written notice and pay a termination fee.<\/p>\n In October 2023, TCC wrote Anthology stating \u201cthis notice is being given pursuant to the \u2018termination without cause\u2019 clause,\u201d but it refused to pay the fee, according to the 2024 lawsuit. The college also demanded Anthology refund the $1.7 million it already paid under the contract.<\/p>\n Anthology sued TCC in the U.S. District Court for the Northern District of Texas, stating the college owed the termination fee and sought damages. The fee was the remaining contractual amount of $23 million.\u00a0<\/p>\n TCC\u2019s move to dismiss the lawsuit was granted in June 2024 based on the argument that the college district is a \u201cunit of state government,\u201d making it \u201centitled to immunity from the suit under Texas law,\u201d according to court documents.\u00a0<\/p>\n Anthology appealed<\/a> the dismissal. In May 2025, the U.S. District Court of Appeals for the 5th District stated the lower court\u2019s ruling was incorrect.\u00a0<\/p>\n \u201cA state-law immunity cannot limit the jurisdiction of federal courts,\u201d the appeal said. \u201cSo the district court should not have considered that issue first. Accordingly, we vacate the district court\u2019s judgement and remand for further proceedings.\u201d<\/p>\n While the college\u2019s original appeal argued it had legal immunity, Allen said TCC communicated issues it had with Anthology\u2019s ability to meet the district\u2019s standards and expectations.<\/p>\n \u201cThe college district identified significant concerns regarding Anthology\u2019s performance,\u201d Allen said. \u201cAfter extensive efforts to address those concerns, the college district terminated the contract.\u201d<\/p>\n Trustee Veronica Law asked Allen if he could be more transparent with the public on how the counsel reached the settlement amount and the model for financial liabilities involved, but he denied.<\/p>\n \u201cThat would be something we would discuss in closed session, but would not be discussed in public,\u201d Allen said.<\/p>\n Reginald Gates, vice chancellor for communications and external affairs, said the trustees\u2019 decision shouldn\u2019t affect planning for the 2026-27 academic year budget, but he didn\u2019t immediately respond to clarify his statement.<\/p>\n TCC\u2019s 2024-25 annual comprehensive financial report said the district<\/a> believed the lawsuit claims were without merit. So, any adjustments that could have resulted from the lawsuit weren\u2019t reflected in the financial statements.<\/p>\n For its 2025-26 operating budget<\/a>, the college allocated $450,000 for external legal fees.<\/p>\n Chief Financial Officer Pamela Anglin said legislative and local property tax exemptions have significantly decreased TCC\u2019s revenue.<\/p>\n \u201cThe amount of exemptions has grown and will continue to grow,\u201d Anglin said at an April 25 special meeting.\u00a0<\/p>\n Ash Petrie is a reporting fellow for the Fort Worth Report. Contact her at ash@fortworthreport.org<\/a>.<\/p>\n