National Public Finance Guarantee Corporation and MBIA Insurance Corporation prevail on appeal in Harris County bond litigation

Client(s) National Public Finance Guarantee Corporation

Jones Day represented National Public Finance Guarantee Corporation and won an appellate victory reversing the trial court's ruling and reinstating claims related to approximately $1 billion in bonds issued by the Harris County-Houston Sports Authority ("Sports Authority") in connection with the construction and development of professional sports stadiums in Houston. Jones Day originally brought suit in state court in Harris County, Texas to enforce the terms of bond indentures and related contracts executed by the Sports Authority and other parties. The Sports Authority, a political subdivision of both the City of Houston and Harris County, asserted governmental immunity, claiming that it could not be sued in connection with the $1 billion bond deal without first obtaining a waiver from the Texas Legislature. The trial court agreed and dismissed the claims against the Sports Authority. Jones Day filed an immediate, interlocutory appeal. After full briefing and oral argument, the First Court of Appeals in Texas agreed with Jones Day that the Sports Authority had expressly waived its immunity in connection with the bond deal. The Court reversed the trial court's dismissal of the claims against the Sports Authority and remanded the case for further proceedings in the trial court.

Nat'l Pub. Fin. Guarantee Corp. v. Harris Cnty.-Hous. Sports Auth., No. 01-13-00401-CV (Tex. App. Houston, 1st Dist., April 2014)