Law and legal issues

The California Supreme Court will hear a case challenging the state's 2013 pension changes, after seemingly settling the issue with a 2020 ruling.

Utah's Seven County Infrastructure Coalition has asked the U.S. Supreme Court to review an appeals court ruling that led to the loss of federal permits for a proposed bond-financed railway that would transport crude oil.

The bankruptcy of Iowa City's Mercy Hospital is closer to an end with the resolution of a dispute between unsecured creditors and the trustee and bondholder.

Austin Transit Partnership's ability under Texas law to seek expedited court validation for bonds to finance light rail is the subject of an April 25 hearing.

Under the proposed deal, the city would sell $650 million of judgment bonds to fund back pay for firefighters, whose wages would increase by up to 34% over the life of a new five-year contract.

The extraordinary redemptions being used to call Build America Bonds "are based on a creative but flawed legal argument driven by the current change in interest rates," said Kramer Levin partner Amy Caton.

The payout represents the maximum percentage a whistleblower can receive under the False Claims Act in Illinois.

There is no timetable for rulings in bankruptcy case or appeal of lien rulings, which could lead to months of additional work on a new payment plan.

The state Supreme Court ruled that prevailing wage rules for public projects don't apply to private entities that borrow using tax-exempt conduit bonds.

The $650 million settlement will fund back pay for firefighters, who will also get future wage hikes.

The Chapter 11 case for Harvest Gold Silica follows two other bankruptcy filings over the last year by entities that sold bonds through the Arizona Industrial Development Authority.

The denied motion will give Rochester MAs Richard Ganci and Richard Tortora of Capital Markets Advisors the opportunity to motion for summary judgment, giving the judge a chance to consider all of the evidence present in the case.

A power struggle over the governance of the Oklahoma Turnpike Authority and a Houston mayor ending a legal dispute with firefighters that could improve the city's Fitch rating are among the legal stories bond market professionals are watching.

Oklahoma Attorney General Gentner Drummond released opinions that disallowed the holding of multiple government roles by Turnpike Authority Executive Director Tim Gatz and upheld the constitutionality of a 2023 law that altered the turnpike's governance structure.

Legal challenges to congestion pricing tolls may delay much-needed repairs to the city's transit system, the Metropolitan Transportation Authority said. 

Austin Transit Partnership, which was created by the city and its mass transit agency to develop and finance Project Connect, approved an initial bond sale of up to $150 million.

Oklahoma is on a roll, notching its third positive rating outlook since July with the latest move coming from Fitch Ratings.

After two auctions, Mercy Hospital, a nonprofit hospital in Iowa City, was sold, but bondholders' recovery will hinge on the Chapter 11 liquidation process.

Proponents of the proposed bond-financed 86-mile railway in northeast Utah are hoping Congress or a U.S. Supreme Court review can advance the project.

Bonds sold through conduit debt issuer Arizona Industrial Development Authority are involved in Chapter 11 bankruptcies filed over the last year.