California Choo Choo – (Cont’d.)

A California Court of Appeal has issued an order expediting the review of a trial court decision whose effect has been to stop the sale of railroad bonds by the state, thereby dooming the proposed Los Angeles to San Francisco “bullet train.” The appellate court decision does not reverse that ruling; it just lets the railroad authority cut into the line of cases awaiting court review on the merits.

Stripped to plain English, the issue in this appeal, inter alia, is whether bond promoters are free to mislead the voters when they submit their proposed state bond issue for voter approval in an election. Specifically, can they represent the public debt to be incurred by those bonds as $X but then go ahead and issue bonds for it that are ten times that amount.

The ruling is covered by the L.A. Times (Ralph Vartabedian, Appeals Court Stays Judge’s Bullet Train Bond Ruling Pending Appeal,  Feb. 16, 2014, http://www.latimes.com/local/la-me-bullet-decision-20140216,0,155139.story#axzz2tV7leS8Z ).

Stay tuned.

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