CCA sues alternative schools venture

Prison operator claims fellow Nashville company owes $1.6M in lease dispute

Let’s call this a battle between two private corporations who make their money by partnering with public entities.

The property division of Corrections Corp. of America is suing Nashville-based Community Education Partners over an office building lease. CCA, the largest player in the privatized prison space, claims that CEP owes it more than $1.6 million after backing out of a lease.

CEP is a for-profit company that operates alternative schools for public school systems in Houston, Dallas and Pittsburgh, among other places. CCA claims the company entered a six-year lease agreement amendment for nearly 100,000 square feet of office space for an educational facility. (The suit doesn't mention the location of the office building.) The lawsuit says CEP vacated the property in July 2011, only halfway through the lease.

The agreement required that CEP pay $89,833 per month, which it did until May 2012. That's when CEP execs officially notified CCA that they'd no longer be able to fulfill the obligations of the lease, according to the suit.

CCA is asking Davidson County Circuit Court to order CEP to pay $1,619,815 — including more than $90,000 for past due rent and a “discount” of $1,529,341 to cover the remaining rent obligations.

According to CEP CEO Randle Richardson, they hadn't yet been served with a lawsuit — which is available here.