Jefferson County wants out of lawsuits on sewer debt

Nov 9, 2013

BIRMINGHAM, Ala. (AP) — Jefferson County officials are seeking dismissal of two lawsuits by sewer customers as part of the county's plan to emerge from bankruptcy. reports county attorneys filed a court motion last week asking a judge to throw out the lawsuits as part of the county's agreement with creditors. Attorneys for the plaintiffs in both cases, who sued over rate increases, said they oppose having the suits dismissed. Jefferson County's settlement agreements with creditors are at the core of its plan to exit bankruptcy by the end of the year. U.S. Bankruptcy Court Judge Thomas Bennett must approve those settlements. Both lawsuits challenge the validity of the county's refinancing of sewer debt a decade ago, which led to large increases in debt and higher rates for consumers.