Last July, a California appellate court invalidated a decision by Coast Community College District, which was selling off its Public Television Station, to reject a high bid from the religious Daystar Television Network. The religious broadcaster's bid was rejected in favor of a lower bid from the KOCE Foundation that would keep the station as part of the PBS system. Upon the petition of both parties, the court granted a rehearing, and on Thursday reached the same result that it had before, but for different legal reasons. In Word of God Fellowship, Inc. v. Coast Community College District, (Cal. 4th App. Dist., May 25, 2006), the court found that it was improper for Coast Community College to materially amend a public contract in favor of a private bidder after the bidding is closed and the contract was awarded.
In reporting on the decision today, the Los Angeles Times points out that Coast Community College is also defending a second lawsuit seeking $20 to $30 million in damages brought by Daystar, alleging that the district and board trustees violated Constitutional freedom of religion protections when it refused to sell the station to the Christian broadcaster. Richard Sherman, the attorney for Daystar, said that Daystar would be more willing to settle the second suit if the district offers the station for sale again.