Law and legal issues

Stockton and its bond market creditors will battle over whether the city should be allowed to enter bankruptcy protection during a four-day trial next week.

An Illinois judge on Tuesday dismissed litigation challenging a state overhaul of retiree healthcare benefits after concluding that strict protections afforded to pension benefits in the state constitution don't apply.

Bell, the working class Los Angeles-area city that achieved national notoriety in 2010 for the outrageous salaries of city leaders, recently scored high marks for transparency.

While the need for struggling cities to act now is a common refrain, roadblocks such as state laws often stand in the way.

Michigan Treasurer Andy Dillion could not pinpoint Detroit emergency manager Kevyn Orr's biggest challenge, but said reaction to Orr's appointment has been positive.

Solutions to municipal distress are as complex as the problem is widespread, panelists say at The Bond Buyer conference in Providence.

Gov. Lincoln Chafee and state General Treasurer Gina Raimondo touted Rhode Island's work with struggling communities Monday morning at The Bond Buyer's symposium on distressed municipalities.

The Securities and Exchange Commission has asked a federal court in Birmingham, Ala., to set a trial date for two former JPMorgan bankers facing charges related to bankrupt Jefferson County's defaulted sewer deals.

Standard & Poor's Friday boosted its outlook on junk-rated Detroit to stable from negative, saying the state's appointment last week of an emergency manager bodes well for the city's future fiscal position.

Ohio-based American Municipal Power Inc. has received a subpoena from the Securities and Exchange Commission tied to the Prairie State coal-fired plant, according to public documents obtained by an environmental group.

A judge has overturned a step by the State University of New York aimed at restoring financial health to the SUNY Downstate Medical Center.

Michigan firm Miller Canfield Paddock and Stone PLC is expected to continue to serve as Detroit's local outside counsel as it embarks on a large-scale restructuring, with Ohio-based Jones Day serving as national restructuring counsel.

Distressed Harrisburg's mayor's race became more crowded with the official candidacies of Dan Miller and Nevin Mindlin, both of whom look to unseat incumbent Linda Thompson in the fall.

Rochester, N.Y., will experience fiscal stress in the coming years, the office of New York Comptroller Thomas DiNapoli said in a recent report.

Jefferson County, Ala., expects to file a plan to adjust its debts in 90 days, said commission president David Carrington. A plan could help guide the county out of the country's biggest municipal bankruptcy.

Sentencing of David Rubin and his firm, CDR Financial Products Inc., for charges related to bid-rigging of municipal investment contracts, has been postponed by a federal judge until June 28.

Gov. Rick Snyder Thursday appointed Jones Day bankruptcy attorney Kevyn Orr as Detroit emergency financial manager. Orr warned creditors that he's willing to use bankruptcy.

The Supreme Court's 2010 Citizens United ruling should alleviate concerns by the Municipal Securities Rulemaking Board that additional regulation of bond ballot campaign contributions could violate free speech protections guaranteed by the First Amendment, according to the National Association of Independent Public Finance Advisors.

Stockton, Calif., which is battling with creditors over its attempt to enter Chapter 9 bankruptcy protection, received $1 million from the Federal Emergency Management Agency to buy two new fire engines.

San Bernardino, Calif., is the latest city to receive a letter from the state government demanding it hand over redevelopment funds but threatens to fight back in bankruptcy court.