Calif. City Can't Use Debt Cap To Dodge Suit Over $35M Deal

Law360, Los Angeles (February 7, 2013, 6:20 PM EST) -- The city of Bell, Calif., lost its bid to escape a suit by a Dexia NV/SA unit on Thursday, when a judge ruled that state constitutional caps on the city's total debt didn't bar the Belgium-based bank's claims that a $35 million real estate bond deal violated the state's False Claims Act.

At a Thursday hearing in Los Angeles County Superior Court, Judge Amy D. Hogue ruled that the city's motion for summary judgment had failed to present admissible evidence that it was unable to pay...
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