Law and legal issues

The bankruptcy judge overseeing Detroit's Chapter 9 case confirmed the city's plan of confirmation Friday, capping the largest municipal bankruptcy case in the U.S. by endorsing a plan that favored pensioners over bondholders

Standard & Poor's said Detroit's bankruptcy will not affect the agency's general obligation ratings despite "months of headlines and court battles."

The U.S. Supreme Court ruled Nov. 3 that Florida can proceed with its suit against Georgia over fresh water rights.

The Fix LA Coalition, an effort spearheaded by labor unions and its allies, wants Los Angeles City Attorney Mike Feuer to file a regulatory complaint against the underwriters involved in 2006 interest rate swaps saying the risks weren't disclosed.

Moody's Investors Service has upgraded the rating on Stockton, Calif.'s 2006 lease revenue bonds and its water bonds following the confirmation of the city's bankruptcy exit plan, while affirming a low speculative-grade Ca rating on its pension obligation bonds.

The city of Allen Park, Mich., is preparing to refinance up to $28 million of bonds that were the target of fraud charges and a recent settlement by the Securities and Exchange Commission.

The federal judge overseeing Detroit's bankruptcy will rule on the city's debt plan Friday, in one of the most closely watched cases in the muni market.

A Puerto Rico court affirmed its decision in favor of the Puerto Rico bank Doral Financial Corp., in a setback for the Puerto Rico Treasury.

San Bernardino voters decided the city should continue to determine police and firefighter pay by a charter formula that effectively ratchets up their pay.

The interim manager of Kentucky's Paducah Power System says he's working on a plan to deal with high costs tied to the Prairie State project in Illinois, while fending off some residents’ suggestion that the utility file for bankruptcy.

Moody's Investors Service said the outcome of Stockton, Calif.'s bankruptcy confirmation hearing is a credit positive for the California Public Employees Retirement System since pension obligations were unimpaired.

Three days before a judge rules on Detroit's bankruptcy exit strategy, the city posted a proposed order that defends the plan as conforming to all key federal benchmarks, highlighting its legal justification for favoring pensioners over bondholders.

Former Miami, Fla. budget director Michael Boudreaux is seeking a rehearing before a full federal court of appeals after a three-judge panel earlier this year denied his claim of immunity from a Securities and Exchange Commission lawsuit.

Monticello, Minn., will borrow $6.5 million to fund a settlement with holders of $26.4 million of defaulted telecommunication revenue bonds as the city seeks to turn the page from a failed deal that prompted investor accusations of fraud.

The U.S. Supreme Court ruled Nov. 3 that Florida can proceed with its suit against Georgia over fresh water rights.

Jefferson County is bringing additional attorneys into court to assist with its bankruptcy appeal case in U.S. District Court in Birmingham.

Puerto Rico officials said Thursday that the Puerto Rico Electric Power Authority would default on its bonds but that the Puerto Rico Highways and Transportation Authority would not.

While the judge's ruling in Stockton, Calif.'s bankruptcy case did not provide a precedent for dealing with pension obligations in Chapter 9, it did provide a "roadmap" for other municipalities that may want to cut pensions, one expert said.

Topeka leaders went to court in hopes of circumventing a petition calling for an election on the proposed purchase of a distressed automotive racetrack.

The Georgia Supreme Court set oral arguments in the Atlanta Falcons stadium appeal Nov. 3, and could hear arguments against the Atlanta Braves stadium in February.