The Supreme Court on Friday turned down California's request to delay a federal court order related to state prison overcrowding.

The justices refused to extend a deadline beyond Sept. 18 for telling a special three-judge panel how California will reduce its inmate population by 40,000, roughly a quarter, over two years.

The judges called for the reduction so the state can improve medical and mental health care for inmates in its 33 adult prisons. The federal courts have found the care so poor that it violates inmates' constitutional rights.

While rejecting the state's plea for a delay, the court noted that the three-judge panel has agreed not to put a final order into effect until after the justices have had a chance to review its decree.

The special three-judge panel had rejected California's request for a delay earlier this month, sending the matter to the high court.

In addition to its failed request for a delay, the Schwarzenegger administration is appealing to the Supreme Court the panel's inmate-release order. It has been joined by Republican legislators and associations representing prosecutors, sheriffs, police chiefs and chief probation officers.

The administration argues that the federal courts are overreaching in their effort to direct the state's affairs and are violating a federal law that restricts judges' actions in inmates rights cases

The Indiana Court of Appeals has ruled that a pizza shop must pay for weight-loss surgery for an obese employee to ensure the success of another operation for a back injury he suffered at work.

The decision is raising concern among businesses bracing for more such claims.

Boston's The Gourmet Pizza cook Adam Childers of Schererville weighed 340 pounds when he was injured by a freezer door. Doctors said he needed back surgery, but it wouldn't be successful unless he had weight-loss surgery first.

Boston's argued it shouldn't have to pay because Childers' weight was a pre-existing condition.

But a workers' compensation board and the court said the company had to pay because his weight and the accident created a single injury.

Finally, auction day has come for the Phoenix Coyotes. It's two days, actually.

The NHL franchise is to be sold at auction in a two-day hearing that began Thursday in U.S. Bankruptcy Court in downtown Phoenix.

Only two bids have been made.

One by Canadian billionaire James Balsillie is contingent on moving the team to Hamilton, Ontario, over the overwhelming opposition of the NHL.

The other is by the NHL, which says it will resell the team outside of the bankruptcy process, either to an owner who would keep the team in Glendale or, failing that, to someone who would relocate the franchise. Balsillie and NHL commissioner Gary Bettman were in the crowded courtroom when the hearing began.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

PHOENIX (AP) — Finally, auction day has come for the Phoenix Coyotes. It's two days, actually.

The NHL franchise is to be sold at auction in a two-day hearing that begins Thursday in U.S. Bankruptcy Court in downtown Phoenix.

Only two bids have been made. One by Canadian billionaire James Balsillie is contingent on moving the team to Hamilton, Ontario, over the overwhelming opposition by the NHL.

The other is by the NHL, which says it will resell the team outside of the bankruptcy process, either to an owner who would keep the team in Glendale or, failing that, to someone who would relocate the franchise.

The U.S. Appeals Court for the Federal Circuit says Microsoft Corp. can keep selling its Word desktop software as it appeals an unfavorable patent ruling.

In May, a Texas district court said some versions of Microsoft's word processing software infringe on a Canadian technology company's patent. The dispute is over the way Word 2003 and Word 2007 let users customize document encoding.

The Texas judge had ordered Microsoft to pay Toronto-based i4i LLP $290 million and stop selling infringing versions of Word by the middle of October.

Redmond-based Microsoft has appealed the ruling and is set to present arguments on Sept. 23.

The Schwarzenegger administration on Tuesday asked the federal courts to delay an order requiring California to reduce its inmate population over the next two years.

Last month, a special three-judge panel gave California 45 days to decide how it will cut the number of inmates in its 33 adult prisons by more than 40,000, bringing the population to about 110,000. They found that reducing the number of inmates in California's 33 adult prisons was the only way to improve medical and mental health care, which the courts previously ruled was so poor it violated inmates' civil rights.

The administration maintains that the courts cannot order the state to release prisoners and plans to file an appeal with the U.S. Supreme Court on Thursday.

Meanwhile, the administration wants the three-judge panel to stay its decision ordering the prisoner release. That motion was filed Tuesday with federal courts in Sacramento and San Francisco.

If the three California-based federal judges will not delay their order, Schwarzenegger spokesman Aaron McLear said the administration will seek a stay from the nation's high court.

Supreme Court Justice John Paul Stevens has hired fewer law clerks than usual, generating speculation that the leader of the court's liberals will retire next year.

If Stevens does step down, he would give President Barack Obama his second high court opening in two years. Obama chose Justice Sonia Sotomayor for the court when Justice David Souter announced his retirement in May.

Souter's failure to hire clerks was the first signal that he was contemplating leaving the court.

Stevens, 89, joined the court in 1975 and is the second-oldest justice in the court's history, after Oliver Wendell Holmes. He is the seventh-longest-serving justice, with more than 33 years and eight months on the court.

In response to a question from The Associated Press, Stevens confirmed through a court spokeswoman Tuesday that he has hired only one clerk for the term that begins in October 2010. He is among several justices who typically have hired all four clerks for the following year by now. Information about this advance hiring is not released by the court but is regularly published by some legal blogs.

Stevens did not say whether he plans to hire his full allotment of clerks or whether he will leave the court at the conclusion of the term that begins next month. Retired justices are allowed to hire one clerk.