Sherman v. City of Atlanta, in which the Supreme Court of Georgia held that the trial court was required to determine objectors’ standing before addressing merits of objections in bond validation hearing and that attorney proffers were insufficient to establish objectors’ standing; greatest case name ever! Land of Lincoln Goodwill Industries, Inc. v. PNC Financial
In re Allstate Life Ins. Co. Litigation, in which the district court found that underwriters’ counsel spent enough time reviewing and editing the POS in a bond sale that a trier of fact could find that it had actual knowledge of the misstatements contained in the POS, thus giving rise to a duty to disclose,
In a precedent-setting decision that could have major ramifications for issuers, the IRS has ruled that a Florida Community Development District is not a political subdivision that can issue tax-exempt bonds. Panelists at a GFOA conference warned issuers to be wary of dealer contracts that might violate municipal securities rules and to make sure they
SEC, FINRA Probing Dealers Over Issuers’ Continuing Disclosure Compliance. WSJ: South Miami Charged With Defrauding Bond Investors and SEC Charges City of South Miami with Defrauding Investors About Tax-Exempt Status of Municipal Bonds. See also, Reuters: Wielding Harrisburg Example, SEC Cajoles Cities Nationwide. In re Jerome Markowitz Trust, in which the Superior Court of Pennsylvania
Raymond James Financial Services, Inc. v. Phillips, in which the Supreme Court of Florida held that state statutes of limitations apply to securities arbitrations. This article discusses the potential implication of this decision. Woman’s Hosp. Foundation v. National Public Finance Guarantee Corp., in which a Louisiana court of appeals upheld a bond insurer’s contractual right
City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc., in which the Supreme Court of California held that Compassionate Use Act and Medical Marijuana Program Act do not preempt local bans on medical marijuana dispensaries. Sherman v. Development Authority of Fulton Count, in which the validation of a bond transaction leasehold estate
The SEC has charged the City of Harrisburg, Pa., with securities fraud for its misleading public statements when its financial condition was deteriorating and financial information available to municipal bond investors was either incomplete or outdated. SIFMA, as part of the Bank Loan Disclosure Task Force, has released a white paper regarding voluntary secondary market
Webb v. First Tennessee Brokerage, Inc., in which the court held that a purchaser of Lehman Brothers bonds was not required to arbitrate dispute with broker; cautionary tale for brokerage firm clients. Wall Street Journal article on an investment firm specializing in distressed municipal debt. IRS announces new Exempt Organizations Workshops focusing on changes to
April 23, 2013 – Issue 16
First Arkansas Bank & Trust, Trustee v. Gill Elrod Ragon Owen & Sherman, P.A., in which the Supreme Court of Arkansas discusses the liability of issuer’s counsel to purchasers in bond offering, finding: 1) no liability under state securities act; 2) no relationship giving rise to a duty under contract, negligence, or breach of a
April 17, 2013 – Issue 15
You may find the following items in this issue of particular interest: Kaplan v. Shanahan, in which the court affirmed an arbitration award in which the prevailing party was awarded attorneys’ fees, as the parties had agreed to be bound by FINRA arbitration rules, which permit such fees. State v. McElroy, in which a city
April 10, 2013 – Issue 14
You may find the following items in this issue of particular interest: Wells Fargo Advantage Nat. Tax Fee Fund v. Helicon Associates, Inc., in which the appeals court reversed summary judgment in favor of a law firm on securities law and negligent representation allegations in connection with a bond issuance for which the firm served
April 4, 2013 – Issue 13
You may find the following items in this issue of particular interest: In re Blue Ridge Housing of Bakersville LLC, in which a North Carolina court held that a nonprofit organization was the “owner” of low income housing development, and thus development entitled to property tax exemption, even though nonprofit had only a 0.1% legal
March 13, 2013 – Issue 10
You may find the following items in this issue of particular interest: Borikas, et al. v. Alameda Unified School District, in which a California appeals court found that that parcel tax’s residential/commercial property classifications and differential tax burdens based on property size exceeded the school district’s taxing authority. Northglenn Urban Renewal Authority v. Gil Reyes,