A judge has issued a temporary restraining order to stop construction preparation.
Residents on the property believe the hospital getting built on the golf course breaks an easement clause in their contract.
The clause states residents have a perpetual easement to protect the view of the golf course from their homes and also the view of their homes from the golf course.
"These folks bought these homes knowing these covenants and restrictions and easements were all in place perpetually for their use and their benefit," said Grand Island Homeowner's Association Attorney David Orlowski.
Another part of the lawsuit claims their land deeds guarantee no barriers will block the view of the golf course property without the written permission of all the home owners. They feel the proposed hospital and other development will violate that.
"They are frustrated. They are very frustrated. Because from what we've seen, they are doing this in direct violation of those documents," said Orlowski.
The county has a different viewpoint.
Commission Chairman Rick Muggridge said officials are glad the lawsuit has been filed, and will defend their position that the proposed hospital is permitted.
"It will be a Judge's decision on what the law says. the sooner that happens the better. The good news is we are anticipating it all to be heard in 30 days. And this will all be behind us before the beginning of the year," said Muggridge.
Judge Rucker Smith has been assigned the case, but he is out of town.
Judge George Pegler signed the restraining order, good for 30 days.
Judge Smith returns Monday, and both sides say they want the hearing as soon as possible.
Both sides say this is friendly disagreement.
No one is upset or talking angrily, even with millions of dollars and hundreds of jobs at stake.
Both sides say they think they have the law on their side, and will let a judge decide the issue.