Law and legal issues

Acting on an emergency basis, the City Council in cash-strapped Scranton, Pa., adopted a 1% commuter tax, which still needs approval from a Lackawanna County Court.

In a cross appeal brief this week, Jefferson County, Ala., argues that the bankruptcy judge erred when he allowed sewer warrant holders to be paid with the Chapter 9 case pending.

Moody's hit 54 California city ratings with downgrades or downgrade reviews after a sector review launched after three California cities filed for bankruptcy.

BRADENTON, Fla. — Jefferson County, Ala., said Monday that the Internal Revenue Service is examining $82.5 million of outstanding lease revenue warrants issued in 2006.

Glendale, Ariz. is trying to lower the subsidy it would pay next year to Greg Jamison, the would-be owner of a pro hockey team at city owned Jobing.com arena.

Former Harrisburg, Pa., mayor Stephen Reed blamed initially low cost estimates for incinerator-related debt that ballooned into a $340 million debt crisis.

A judge ruled in favor of Oakland in its pursuit of alleged overpayments to retirees in a long-closed police and fire pension fund.

Investigator Steven Goldfield of Public Resources Advisory Group told a Pennsylvania Senate committee frequent red flags were ignored while Harrisburg incinerator-related debt spiraled.

Gov. Rick Snyder Tuesday formally declared the Detroit suburb of Allen Park to be in a state of fiscal emergency after denying the city's appeal two weeks ago. The city's problems are tied largely to a $31 million 2009 bond issue floated for a now-failed film studio.

The 11th Circuit Court of Appeals has yet to rule on a number of pending motions in Jefferson County, Ala.'s Chapter 9 bankruptcy.

Highmark has sued West Penn Allegheny Health for calling off their $475 million merger, calling the action a contract breach and "a flight from reality."

The U.S. Court of Appeals for the Federal Circuit heard oral arguments Tuesday in the case of Corr V. Metropolitan Washington Airports Authority, a lawsuit that strikes at MWAA's primary mechanism of repaying more than $2 billion of bond debt.

Harrisburg, Pa., has enough cash through November and delaying payments to some vendors could help it make through the end of the year, a state official said.

Rhode Island's state-appointed receiver has scheduled two auctions this month for the assets of failed video-game company 38 Studios.

The Ohio Supreme Court Friday declined to rule on Gov. John Kasich's controversial, bond-financed plan to privatize the state's liquor distribution system, sending the case back to the lower courts.

Alabama's Birmingham-Jefferson Civic Center Authority has seen its bonds upgraded to investment grade after S&P determined that revenues are not affected by Jefferson County's bankruptcy.

Harrisburg City Council member Brad Koplinski introduced legislation to allow the sale of the city's Wild West artifacts to proceed.

A proposed restructuring of lease revenue warrants sold by Jefferson County, Ala., in 2006 would not reduce principal or interest payments to investors, according to insurer Ambac Assurance Corp.

Bankrupt Jefferson County, Ala., told general obligation warrants holders Wednesday that it plans to default on the warrants until they are restructured in the county's Chapter 9 case.

Great Platte River Road Archway Monument in Nebraska museum, showcasing America's pioneer history, defaulted this month on $20 million of capital appreciation bonds, the latest in a series of defaults on $60 million of debt issued in 1998 that the museum has never had enough money to service.