San Bernardino Sues To Stop Calif. From Withholding Revenue

Law360, Los Angeles (March 27, 2013, 5:09 PM EDT) -- The bankrupt city of San Bernardino hit the state of California, the California Department of Finance and the California State Board of Equalization with a lawsuit in California bankruptcy court on Tuesday, hoping to enjoin the defendants from carrying out threats to withhold tax revenues due to the city.

The adversarial proceeding against the state and its officials relates to the city’s Chapter 9 bankruptcy, which was initiated in August 2012 after a fiscal emergency brought on by a budget shortfall forced the city to stop...
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