Law and legal issues

Municipal bond groups are seeking federal appeals court guidance in a ratepayer appeal of part of Jefferson County, Ala.'s Chapter 9 bankruptcy plan, saying the district court decision allowing a challenge of the plan threatens to undermine market stability.

Litigation challenging Chicago's pension reform legislation threatens the city's ability to escape $19 billion of unfunded liabilities, Fitch Ratings said.

One week after its emergency from Chapter 9 bankruptcy, Moody's Investors Service has assigned Detroit an issuer credit rating that's deep in junk bond territory at the B3 level.

Missouri Attorney General Chris Koster sued 13 St. Louis County municipalities Thursday alleging violations of a state law that limits how much money they can make from court-related traffic fines.

The attorney for the New York City Housing Authority came out swinging in response to a stinging report by city Comptroller Scott Stringer that accused the agency of squandering nearly $700 million of federal funds.

A ruling by the U.S. Surface Transportation Board that it has authority to pre-empt state environmental law on construction of California's high speed rail project conflicts with a previous decision by a California Court of Appeals.

A group of Chicago unions, employees and retirees sued Tuesday to overturn pension reforms approved earlier this year, a move that threatens to reverse strides in stabilizing two of the city's four pension funds and the city's credit ratings.

Missouri State Auditor Tom Schweich last week announced guidelines for his planned audit of 10 municipal court systems that includes Ferguson amid growing public and legislative concerns over abuses.

New York City Comptroller Scott Stringer and Hewlett-Packard settled for $10.6 million in dispute over a city emergency communications contract.

Illinois Gov.-elect Bruce Rauner has the legal authority to appoint a replacement to serve out the upcoming term of the late Comptroller Judy Baar Topinka, but Illinois lawmakers should hand the decision over to voters in 2016, Attorney General Lisa Madigan said.

Detroit has just under two weeks to submit and disclose the final tab of its 17-month bankruptcy after attorneys and advisors agreed in mediation to reduce their fees.

A federal judge in Chicago has signed off on Harvey, Ill.'s settlement with the Securities and Exchange Commission over charges it misled investors by diverting bond proceeds from their intended use.

Stockton, Calif. received approval of its bankruptcy plan in October, but it continues to face challenges from its holdout creditor, Franklin Advisors.

Topeka, Kan., will await a ruling from the Kansas Court of Appeals on a citizens petition before issuing $5 million of sales tax and revenue bonds to buy a financially trouble race track. The petition drive seeks a vote on whether to buy the track.

Michigan Attorney General Bill Schuette issued an opinion that Detroit's Downtown Development Authority has the constitutional authority to use its funds for a new $650 million public-private hockey stadium and entertainment district.

Seven St. Louis County local governments, including Ferguson, face litigation challenging the legality of their municipal court fees.

Detroit issued $1.28 billion of new debt that its bond team says required novel financing structures to satisfy both Michigan municipal law and the strict confines of Chapter 9 creditor settlements.

Georgia Gov. Nathan Deal created a special agency and brought in anew attorney for the state's defense in the lawsuit over water rights filed by Florida.

The Illinois Supreme Court agreed Wednesday to an expedited review of Illinois' appeal of a lower court ruling overturning state pension reforms.

A San Francisco Superior Court judge will decide in January whether to uphold a decision to terminate the accreditation of the City College of San Francisco.