Lommen Abdo Prevails in Minnesota Supreme Court on 876 Bondholder Contracts Case

9/11/2009

The Minnesota Supreme Court has vindicated the 876 Bondholders' position that courts do not have jurisdiction to alter, amend or deviate from the revenue bond contracts the St. Paul Port Authority entered into with the 876 Bondholders. This is good news for the holders and issuers of all bonds in Minnesota. The Minnesota Supreme Court opinion finds the challenged district court orders are void because the court lacked jurisdiction to act. Lommen Abdo, on behalf of the 876 Bondholders, will be seeking practical relief and look forward to entering into constructive discussions with the Port Authority to restore the bond fund. The critical impact of the Court's decision is that it removes from the Port Authority and the trial court the authority to unilaterally change the terms of the bargain struck with the bondholders when the bonds were sold by the Port Authority.

News coverage of the Supreme Court decision:

St. Paul Port Authority can't shed bond fund, high court says - Minneapolis Star Tribune, September 11, 2009
Bond fund selloff blocked - St. Paul Pioneer Press, September 11, 2009

For further information, please contact Keith Broady, who represents the 876 Bondholders, at kbroady@lommen.com or 612-336-9346.