Law and legal issues

The New York Supreme Court dismissed the lawsuit brought by various financial institutions against MBIA Inc. over its 2009 split into two companies.

Michigan Gov. Rick Snyder's historic decision Friday to take over the city of Detroit bodes well for the credit and for other local distressed governments, muni experts said, even as Snyder warned that all creditors might take have to take a loss.

Michigan Gov. Rick Snyder Friday announced that the long-suffering city of Detroit was in a state of financial emergency, paving the way for a full state takeover within two weeks.

U.S. District Court Judge John Jones III refused to reconsider the January dismissal of a lawsuit that challenged the state recovery plan for Harrisburg, Pa.

Providence, R.I.'s lawsuit accusing an actuary of miscalculating savings on pension benefits reflects greater exposure of advisors to liability, experts say.

San Diego-based Common Bond Capital Partners has acquired its first distressed land-secured municipal bond project in Florida.

Federal Judge Thomas Bennett Friday entered several major orders that chisel away portions of the $1.63 billion class-action suit filed in Jefferson County, Ala.'s Chapter 9 bankruptcy case.

Stockton, Calif.'s unhappy bond market creditors will get a trial starting March 25 to challenge the city's eligibility for Chapter 9 bankruptcy protection.

Providence, R.I., sued longtime actuary Buck Consultants, accusing it of miscalculating $700,000 of savings the city expected to realize through pension overhaul.

Stockton, Calif., in the midst of Chapter 9 bankruptcy proceedings, announced Tuesday that it had reached an agreement with Ambac.

Illinois Attorney General Lisa Madigan's office argued in state court that state constitutional protections against impairing retiree pensions don't extend to healthcare benefits.

Peabody Energy Corp., which led efforts to develop the mostly bond-financed, joint power agency-owned Prairie State Energy Campus, has received a subpoena from the Securities and Exchange Commission on the coal-fired plant's development.

Arkansas Supreme Court said property tax for schools cannot be diverted to economic development.

The Harris County-Houston Sports Authority said in a court filing Monday that MBIA Insurance Co. is not out "a single penny" for covering $1 billion of its stadium bonds.

All three major rating agencies are saying a recent court decision is a potential credit negative for Nassau County, N.Y.

A teacher's union has sued New York State government to overturn a cap on property tax increases enacted in 2011.

Citing the need to review millions of pieces of evidence, former Bank of America executive Phillip Dennis Murphy, who was indicted in July 2012 for scheming to rig bids for investment contracts, has waived his right to a speedy trial and requested a trial date of Feb. 3, 2014.

The San Bernardino City Council on Tuesday approved the contract for its new city manager, Allan Parker, who will guide the city through Chapter 9 bankruptcy.

If Michigan Gov. Rick Snyder appoints an emergency manager for Detroit, that person will tackle $15 billion of long-term debt liabilities and try to maneuver around a $440 million swap termination payment.

Florida's Santa Rosa Bay Bridge default makes it the largest issuer in default of its municipal bonds this year, according to Bank of America Merrill Lynch.