BRADENTON, Fla. - A group appealing Jefferson County, Ala.'s bankruptcy exit plan will not go forward with their petition.
The so-called Wilson ratepayers, a group of three customers on the county's sewer system, filed a motion Sunday night to dismiss their appeal of the county's plan of adjustment, according to attorney Joshua Firth with Birmingham-based Hollis, Wright, Clay & Vail PC.
U.S. Bankruptcy Judge Thomas Bennett issued a formal written opinion approving the county's plan of adjustment on Nov. 22. The county closed on the sale of $1.78 billion of new sewer warrants Dec. 3 and used the proceeds to write down $3.1 billion of old debt - a major step toward implementing the plan.
"After careful consideration of Judge Bennett's order confirming the plan of adjustment and the legal precedents of both the Eleventh Circuit Court of Appeals and other circuits, we simply feel that the likelihood of success at this stage is minimal and unlikely to produce any benefit or favorable result for the ratepayers," Firth said in an email Monday.
The only other appeal was filed by attorney Calvin Grigsby on behalf of Jefferson County Tax Assessor Andrew Bennett and 12 others, who include current and former Birmingham City Council members, state lawmakers, and others on the county's sewer system.
Grigsby said Monday that he is moving forward with the appeal.
The Wilson group filed a lawsuit involving the sewer debt in 2008 in Jefferson County Circuit Court. A portion of the case was elevated into the Chapter 9 bankruptcy proceedings after the county filed for protection in 2011. Both cases were dismissed when the bankruptcy plan was approved.
"Though we do not believe the ratepayers should be burdened with any of the outstanding debt service due to the history of malfeasance and corruption associated with the sewer system, we also must look to the likelihood of success on appeal," Firth said. "Though we have reservations regarding the ability of the county to meet its financial obligations under the plan of adjustment, we believe the most prudent course of action is to allow the county and the ratepayers to put these issues to rest and move forward."
Firth declined to comment when asked if the Wilson ratepayers reached a settlement with the county or if the case was discussed with the county's attorneys.
"We were always confident in our legal positions," said County Commission President David Carrington about the withdrawal of the Wilson appeal.
When asked if the county reached a settlement with the Wilson group, Carrington said, "The county did not, and will not, negotiate any settlement with the Wilson or Bennett plaintiffs."
