Litigation
Sep. 9, 2011
Cities suing bond issuers over deserted projects
Land use and municipal lawyers say cities are increasingly going to court to try to force bond companies to pay to finish public developments after the project developers go belly-up.
Daily Journal Staff Writer
The developer agreed to finish a street extension and install sewers, gutters and other public improvements for a small subdivision in Rancho Mirage. But then the company went belly-up after only moving around a little dirt.
When the city turned to the insurer that issued the developer a performance bond for the project to pay to finish the work, the agency balked, and the city filed a lawsuit. ...
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