Irondale’s breach of contract lawsuit against Trinity Medical Center will proceed, a Jefferson County Circuit Court judge ruled Tuesday.
Trinity Medical Center attorneys said the east Birmingham hospital never agreed to build a hospital in Irondale and asked a Jefferson County judge Thursday to dismiss the city’s lawsuit seeking financial damages.
National insurance firm Allstate could play a pivotal role in helping Irondale unwind $32.2 million in bonds the city issued to aid Trinity Medical Center’s now aborted relocation effort.
Council members tabled the pay-cut discussions to have time to review Alexander’s proposed budget lineby- line and to listen to suggestions from city employees, including the local’s members, about what can be adjusted in the budget to prevent pay cuts.
Under Councilman Craig Sanderson’s resolution, the mayor would have had options including reaching a settlement with the hospital and Daniel Corp. to pay off the debt, reaching a payoff arrangement with bond holders or filing for Chapter 9 bankruptcy in federal court.
The rest of the council — including Alexander — voted against the resolution that would have given the mayor those powers instead of the council.
The Irondale City Council on Tuesday is expected to discuss allowing Mayor Tommy Joe Alexander power to resolve the city’s debts concerning Trinity Medical Center’s abandoned plans to move to Irondale, with bankruptcy listed as one option.
The Irondale City Council tonight voted to authorize Mayor Tommy Joe Alexander to take “any and all steps” to protect the city’s interests concerning Trinity Medical Center’s decision to abandon its deal to build a new hospital in that city and move to Birmingham for bigger incentives.
Trinity Medical Center and Irondale have agreed to go to mediation May 27 in the dispute over the hospital’s decision to pull out of its plans with the city when Birmingham offered larger incentives, Irondale officials said Tuesday night.
Irondale raised the stakes in its threats to sue Trinity Medical Center on Thursday night, hiring two lawyers who are experts in litigation and health care.
The Irondale City Council tonight unanimously approved a water rate increase, in part to pay for lines it built for Trinity Medical Center before the hospital pulled out of a contract with Irondale and moved to Birmingham instead.