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Judge: Bankruptcy law shields Pipeline from Melrose Park's lawsuit over using bankruptcy to close Westlake Hospital
A federal judge has ruled bankruptcy laws should block lawyers representing the village of Melrose Park from continuing to sue the owners of a now-shuttered suburban hospital for using federal bankruptcy protection to close the hospital, despite a state court order blocking the owners from locking the doors at the financially-troubled health care facility.
Pipeline Health: Melrose Park broke law by asking Cook County judge to find Pipeline in contempt for Westlake bankruptcy
As a Cook County judge prepares to handle the question of whether to hold the owner of a Melrose Park hospital in contempt for filing bankruptcy, the hospital owner has in turn asked a federal bankruptcy judge to find the village of Melrose Park broke federal law by asking the Cook County judge to find them in contempt.
Faced with a possible court order forcing them to keep open a hospital they claim is hemorrhaging money, the owners of Melrose Park’s Westlake Hospital have asked a federal bankruptcy court to take oversight of the owners’ long-running efforts to wind down operations at the hospital, and take it out from under the Cook County courts, for now.