Ala. City's Bid To Sue Bankrupt County Over Hospital Denied

Law360, New York (December 20, 2012, 2:55 PM ET) -- An Alabama federal judge on Wednesday blocked the city of Birmingham from suing the state’s bankrupt Jefferson County over a partial hospital closure while the county is mired in a Chapter 9 proceeding, finding such a suit is unlikely to succeed.

U.S. Bankruptcy Judge Thomas B. Bennett noted that courts routinely deny relief from a stay of outside legal action when, as here, a creditor has little to no chance of success on the merits.

At issue is Jefferson County’s plan to shutter Cooper Green Mercy...
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