The parents of a baby born sickened by a virus in a surrogate motherhood arrangement are suing the would-be father of the baby boy.

Judy and Ray Stiver of Lansing are seeking unspecified damages from Alexander Malahoff of Middle Village, N.Y., for loss of privacy and emotional damage after the baby's birth became front page news.

Mrs. Stiver, 26, was hired by Malahoff, 46, to be artificially inseminated with his sperm and to turn the baby over to him at birth. She was to be paid $10,000.

The child was born Jan. 10 with a virus infection and Malahoff allegedly refused medical treatment for the baby, leading to news coverage.

Tests later revealed that Stiver, 41, fathered the boy. The Stivers are raising the child, who doctors suspect is mentally retarded because of the virus.

Malahoff earlier filed a $50 million lawsuit against the Stivers for breach of contract; he did not pay them the $10,000.

The Stivers also are suing six people involved in setting up the surrogate motherhood arrangement--two Dearborn attorneys and four Detroit-area doctors.

The couple's attorney said they abided by the terms of their contract with Malahoff but were not properly instructed on when it would be "safe" to have intercourse before the artificial insemination operation was carried out.