Law and legal issues

Arguing time is the enemy, Chicago attorneys successfully argued for a fast-track hearing on a pair of lawsuits challenging pension reforms that took effect in January.

The developer of the private All Aboard Florida passenger train expects to complete the project even if it cannot benefit from $1.75 billion in tax exempt private activity bonds, according to documents filed in federal court.

San Bernardino bondholders suffered a key bankruptcy court defeat this week as the city’s bankruptcy exit plan advances.

Jefferson County, Ala., officials traveled to New York to meet the “financial community” and rating agencies on the county’s progress since existing bankruptcy.

After years of financial problems, the school district of Gary is poised to become Indiana's first local government to be taken over by an emergency financial manager.

A Nebraska bill to give bondholders priority over other creditors in the event of a municipal bankruptcy is not likely to pass in the 2015 legislative session as different interest groups negotiate its language.

Florida Supreme Court justices heard oral arguments May 7 in two appeals challenging the Florida Development Finance Corp.’s validation of $2 billion in bonds for a PACE program; one appeal says Florida’s PACE law is unconstitutional.

The Illinois Supreme Court on Friday struck down legislation that had overhauled state employee pensions, leaving the state burdened with enormous pension liabilities.

Struggling cities like Chicago need to embark on serious restructuring efforts before it’s too late and mounting retirement debt pushes them toward the fate of Detroit, said some architects of that city’s bankruptcy.

Attorneys for All Aboard Florida told a federal judge that the private passenger train owners could close on $1.75 billion in tax exempt private activity bonds around June 8.

The New Jersey Supreme Court heard testimony in a case challenging Gov. Chris Christie's decision to reduce scheduled contributions toward state employees' pensions.

Madison County, Miss., disputes its obligation to backstop some public improvement district bonds in a lawsuit with Radian Asset Assurance Inc.

Oregon will be able to manage the immediate impact of the Oregon State Supreme Court’s restoration of the cost-of-living adjustment, Fitch Ratings said in a May 6 report.

An Oregon Supreme Court decision striking down cost-of-living reductions is credit negative for both the state and its municipalities, according to a Moody’s Investors Service report.

Ohio-based Promedica Health System Inc. must divest itself of another local hospital after the U.S. Supreme Court refused to hear the hospital’s appeal of a lower court ruling blocking the merger.

A sentencing recommendation of 15 years in prison for former Arkansas Treasurer Martha Shoffner prompts an objection from her lawyer.

A federal lawsuit seeks to stop Ohio from using toll revenue from the Ohio Turnpike to finance non-turnpike related highway projects.

Standard & Poor's kept Atlantic City on credit watch negative in a new report released April 30 as the struggling gambling hub seeks short-term options to avoid a long-term bankruptcy.

Michigan Gov. Rick Snyder says the Detroit schools can't move forward if burdened by their current "crushing" debt load. To that end, the governor wants to divide the Detroit school district into two entities.

A second federal lawsuit has been filed challenging the private activity bond financing for the All Aboard Florida train project; the latest suit comes from Martin County, Fla.