Issues and Procedures in Municipal Finance Litigation

Summary

This practice note discusses issues and procedures in municipal finance litigation. Carefully prepared, adequately supported, and well-structured municipal bonds rarely result in litigation. Nonetheless, lawsuits can and do result from the issuance of municipal securities, particularly, where governmental entities are embroiled in fiscal crises, and a bond default occurs or the possibility of one looms. Municipal attorneys must be prepared for the possibility of such disputes. Similarly, attorneys for bondholders must be aware of their clients' rights and be ready and able to pursue legal action when doing so will advance their clients' interests. This practice note considers some of the issues that typically arise in municipal bond litigation.