Rochester, MN  (KROC AM News) -  A hearing was held Friday in Olmsted County Court dealing with the three year legal battle between the city of Rochester and the former provider of public transit services.

It was the first hearing since the Minnesota Supreme Court recently overturned an appellate court ruling that essentially dismissed a lawsuit filed by Rochester City Lines after it lost its contract with the city in 2012.

The Court ruled RCL did present sufficient evidence to raise questions about whether the selection process that led to a new contract was fair and unbiased. The court then sent the case back to Olmsted County Judge Joseph Chase for a possible trial.

The two sides met with the judge Friday and agreed they will try to settle the case through mediation. If that doesn’t work the case will go to trial, either before Chase or a jury. The city prefers a court trial while RCL wants a jury to decide the issue.

The judge is expected to issue a ruling soon and then decide the scope of the trial, which will determine how long it will run.

At this point, the trial is expected to begin next spring.