San Benito Health Care District v. California Nurses Association
Opinion
Trial Court Opinion
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA 3 IN RE SAN BENITO HEALTH CARE Case No.24-cv-02266-JD
DISTRICT
5 Debtor. ORDER RE APPEAL
SAN BENITO HEALTH CARE DISTRICT
9 dba HAZEL HAWKINS MEMORIAL
HOSPITAL
11 Appellant, 12 v.
CALIFORNIA NURSES ASSOCIATION
14 & NATIONAL UNION OF
HEALTHCARE WORKERS
16 Appellees. 17 After months of financial distress and cost-cutting measures in 2022 and 2023, appellant San Benito Health Care District (San Benito or District) filed for bankruptcy on May 23, 2023. Appellees California Nurses Association and the National Union of Healthcare Workers (together Objectors) objected to the bankruptcy on the principal ground that San Benito was not “insolvent” for purposes of bankruptcy relief. The bankruptcy court held a four-day bench trial in December 2023 and issued a thorough order dismissing the petition on the ground that the District “ha[d] not met its burden of proving it was eligible to be a debtor under chapter 9.” A00741.1 San Benito appeals the dismissal of its petition and assigns…