Roanoke Bankruptcy Dismissal

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authorizing governmental entity and is therefore a political subdivision of the State has been affirmed by the Alabama Supreme Court. The Alabama Supreme Court has further explained that these authorities are entitled to sovereign immunity. As an agent or instrumentality of a municipality, the Roanoke Authority is excluded from the definition of a person under ยง 101(41), and thus the Roanoke Authority is not eligible for relief under Chapter 11. A.

The Roanoke Authority is a Government Entity or an Agency or

Instrumentality Thereof. The Roanoke Authority is an agency or instrumentality of the City of Roanoke and Randolph County and is a political subdivision of the state. Ala. Code Section 22-21-318(c)(2). See Askew v. DCH Regional Health Care Authority, 995 F.2d 1033 (11th Cir. 1993) (holding that a health-care authority is a "political subdivision of the state") and Health Care Authority for Baptist Health v. Kay E. Davis 2011 Ala. Lexis 17 (Ala. 2011) ("HCA act specifically states that a health care authority established thereunder 'acts as an agency or instrumentality of its authorizing subdivisions and as a political subdivision of the state.'"). In Health Care Authority for Baptist Health v. Kay E. Davis, the Alabama Supreme Court looked to the applicable enabling legislation in determining that the health care authority in question was an agency or instrumentality of the University of Alabama Board of Trustees and a political subdivision of the State for purposes of sovereign immunity. Health Care Authority, 2011 Ala. Lexis at 37. Accord In re Greene County Hosp., 59 B.R. 388, 389 (Bankr. S.D. Miss. 1986) (finding that a county hospital was a municipality for purposes of chapter 9 eligibility based on applicable state enabling legislation). As in Health Care Authority, the entity at issue here (the Roanoke Authority) was created pursuant to Ala. Code Section 22-21-318(c)(2). The Roanoke Authority is also considered a governmental entity. See Todorov v. DCH Healthcare Authority, 921 F.2d 1438 (11th Cir. 1991) ("It is apparent from this Act that the -5B MAM01 971291 v2 1039340-000093 05/05/20111

Case 11-80502

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Filed 05/06/11 Entered 05/06/11 12:27:00 Document Page 5 of 10

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