The city sued Attorney General Mike McGrath late last year when he issued an opinion that scuttled its plans to contract for prisoners from other states. A hearing in the case is scheduled for 2 p.m. Friday, before state District Judge Jeffrey Sherlock in Helena.

Hardin City Attorney Rebecca Convery says the outcome could determine whether bond investors try to mortgage the facility to recoup their money. Convery says when the jail defaulted on its bonds, the city was forced to dip into a $7.5 million reserve built into the jail's financing to cover an initial $900,000 debt payment due last week.