In a mandamus motion, we represented National City Bank and The Cleveland Trust Company looking for a delineation of the appropriate steadiness between state and federal judicial authorities. Our clients had issued tax anticipation notes to the Cleveland Public Schools. These notes may only be repaid with tax revenues collected earlier than the tip of the present 12 months.
We sought a writ of mandamus to require the college board to adjust to its authorized duty to pay tax revenues into the retirement fund to retire the notes. The Ohio Supreme Court granted the writ, but the federal court docket promptly renewed its order to the college board with no hearing and enjoined the banks from additional litigation. That order was stayed by a single decide of the sixth circuit of that courtroom and a panel remanded the case with directions to hold a hearing. The panel held that only if there have been a purposeful intent to evade desegregation required by the federal constitution might a federal district choose intervene with state and local college financing.
The faculty system was under a desegregation order administered by the federal court docket. The federal district decide had ordered that available funds be used just for school operations and that funds could not be expended to retire the notes.
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