Law and legal issues

San Bernardino City Attorney James Penman filed a lawsuit against the state claiming that if the city's sales and property taxes are docked, the city will be forced to shut down.

If Stockton is granted the right to file for bankruptcy protection, the next big fight ahead may be with its whale of a creditor, the California Public Employees' Retirement System,

Altoona has received a $519,000 grant to support new technologies that will help the financially distressed city implement its financial recovery plan.

The trial over Stockton, Calif.'s eligibility to enter bankruptcy protection is expected to wrap up Wednesday, with bankruptcy Judge Christopher Klein saying he is likely to rule Monday.

Alabama Rep. John Rogers, D-Birmingham said he will sponsor legislation to re-institute an occupational tax for bankrupt Jefferson County.

The San Bernardino County, Calif. District Attorney office announced the arrest of former airport developer Scott Spencer on charges that he defrauded the San Bernardino International Airport Authority of more than $1 million.

Moody's Investors Service called an Illinois judge's dismissal of litigation challenging the state's retiree healthcare reforms a credit positive for the state.

Stockton and its bond market creditors postured for a fight Monday at the start of a Federal court trial over the city's ability to enter Chapter 9 bankruptcy protection.

A federal appeals court ruling struck a blow to a financing program for energy efficiency and water conservation projects on homes when it upheld a decision last week by the Federal Housing Finance Administration prohibiting participation by Fannie Mae and Freddie Mac.

A bankruptcy court hearing is slated next week on settlement agreement between American Airlines Inc. and holders of its $1.4 billion of New York City airport debt.

Pennsylvania Turnpike Commission Secretary-Treasurer J. William Lincoln resigned from the panel in the aftermath of a grand jury report over pay to play.

The Virginia attorney general's office has issued an opinion that a sweeping new transportation law passed by the legislature last month violates the state constitution.

Detroit's new emergency manager began the job early Monday morning, meeting with the mayor and city council members and reiterating his agenda of tackling the city's debt, employee benefits, and city services.

Florida's Santa Rosa Bay Bridge Authority has scheduled a meeting April 10 but a resolution to the agency's ongoing default on $131.2 million of bonds is not expected to be on the agenda.

The Rev. Jesse Jackson Friday traveled to Detroit to join local leaders in calling for mass civil disobedience against Michigan's takeover of Detroit and to announce a federal lawsuit expected to be filed next week.

A Los Angeles County jury deliberated 18 days before finding five of six former Bell officials guilty on charges of mismanaging funds and collecting exorbitant salaries.

Attorneys say resolution may be near for the Ritter Ranch community facilities district in Palmdale, Calif. after 23 years of trouble, including bankruptcies of the developer and Lehman Brothers.

Pittsburgh Mayor Luke Ravenstahl is challenging the nonprofit status of the University of Pittsburgh Medical Center, Pennsylvania's largest employer.

Chicago must compensate the private operators of four downtown city- and park district-owned parking garages for $58 million in lost revenue and interest stemming from the city's approval of a competing parking facility.

Appeals are likely after a Superior Court judge ruled last week that a San Diego hotel room tax to finance the $520 million planned expansion of San Diego¹s convention center is legal.