Law and legal issues

Jersey City sued the Port Authority of New York and New Jersey for $400 million, saying the payments the city receives in lieu of property taxes from the regional transportation infrastructure overseer are grossly inadequate.

The Michigan House Thursday overwhelmingly and speedily passed legislation aimed at resolving Detroit's bankruptcy and creating oversight for the post-bankrupt city as it exits bankruptcy.

JP Morgan Chase CEO Jamie Dimon said Detroit's bankruptcy and proposed bondholder treatment shouldn't hurt the market for local Michigan bonds over the long run, according to the Detroit Free Press.

A Michigan House committee devoted to Detroit's bankruptcy unanimously approved legislation to authorize a $195 million state contribution to the city's pensions and outline oversight of the city post-bankruptcy for the next 20 years.

Rhode Island House Speaker Nicholas Mattiello and Majority Leader John DeSimone plan to meet with Moody's and S&P in New York to discuss the possible fallout of missing 38 Studios-related bond payments.

Michigan legislators neared a vote on a package of bills aimed at resolving Detroit's bankruptcy after a hearing that saw testimony from public finance veteran Richard Ravitch and Detroit Mayor Mike Duggan.

The California Public Employees' Retirement System requested another extension to file court documents in its appeal of San Bernardino's eligibility to be in bankruptcy citing progress made in the confidential mediation.

Underwriter Citi terminated a $265 million bond deal after an Anaheim, Calif. activist organization filed a lawsuit May 12 seeking to invalidate the bonds, which were to finance a convention center expansion.

The North Carolina Department of Transportation won federal approval to resume work on the $900 million, 20-mile Monroe Bypass project stalled by a federal ruling.

The fight over Detroit's proposed 10% recovery for its limited-tax general obligation bonds heated up last week as Ambac challenged the treatment as a failure to understand the basics of Chapter 9 and municipal finance.

Public finance guru Richard Ravitch, in a lengthy interview, discusses his new book and how cities and states haven't learned from New York's 1975 fiscal crisis.

The lawyer for former Rhode Island House Speaker Gordon Fox said a grand jury investigation may include the financing of failed video-game company 38 Studios.

The Louisiana State Bond Commission wants to meet with the Department of Justice in hopes of resolving a housing discrimination lawsuit.

The confirmation hearing to determine if Stockton can emerge from bankruptcy will go into a fifth day, on June 4, to allow more time to hear arguments, according to the case judge.

Federal Judge Steven Rhodes Thursday shot down bond insurers' requests that they be given special access to Detroit's prized art collection for an independent valuation.

Stockton, Calif. heads into the final day of its scheduled four-day trial to determine if it can emerge from Chapter 9 bankruptcy.

An Illinois state court judge on Wednesday agreed to temporarily halt the June 1 effective date of state pension overhaul legislation passed last December.

Debate among Rhode Island politicians percolates over payment of 38 Studios debt, and a consulting firm hired to explore the fallout of nonpayment in the bond market warned of negative snowballing should the state not pay.

Detroit emergency manager Kevyn Orr testified before a special House committee Tuesday that is considering a $195 million state contribution to the city's pension funds that Orr said is essential to the city's recovery.

Defined benefit pension plan promises in the public sector are not as secure as many had thought they were before the financial crisis, given that courts have largely upheld states' cuts to cost-of-living adjustments, a recently released report said.