Part of a council’s package of £40m cuts has been stalled by legal action over the planned closure of a home for elderly people.
Wolverhampton City Council had been set to shut Underhill House after a High Court judge rejected a request for a judicial review.
But the care home, which houses nine elderly people, has been halted by the Court of Appeal and the case will be heard again on 9 September.
The appeal court said the city had been wrong to act on the judge’s initial refusal of a review.
Opponents of the closure say the residents’ lives would be put at risk because of the stress of moving out.
A Wolverhampton City Council spokesman said: “The council will of course abide by the Court of Appeal’s decision to grant an interim injunction which prevents the relocation of residents from Underhill House.
The closure would save the council £240,000 out of the £40m package of savings covering the current financial year and next year.