Sharon Ebanks was elected in Kingstanding after two recounts
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A petition to overturn an election result is having a preliminary hearing in the High Court.
Sharon Ebanks became Birmingham's first BNP councillor in May's local elections when she was officially declared to have won the poll in Kingstanding.
The returning officer later said a mistake had been made and she had polled fewer votes than announced.
The Labour Party, which claims its party members should have been elected, has lodged a petition in the court.
'Error made'
Rules mean the announced result can only be overturned in court.
The petition has been served on Ms Ebanks and the city council's returning officer, Stephen Hughes.
Mr Hughes had said the seat should have been a Labour win, after it became clear an error had been made and some votes had been counted twice.