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Judge Rules That Detroit Bankruptcy Filing Is Unconstitutional
Mediaite ^ | 07/19/2013 | Josh Feldman

Posted on 07/19/2013 2:23:28 PM PDT by SeekAndFind

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1 posted on 07/19/2013 2:23:28 PM PDT by SeekAndFind
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To: SeekAndFind

MORE HERE:

Michigan judge rules Detroit bankruptcy violates state constitution

Read more: http://www.upi.com/Top_News/US/2013/07/19/Michigan-judge-rules-Detroit-bankruptcy-violates-state-constitution/UPI-85361374250852/#ixzz2ZWrAnaFh


2 posted on 07/19/2013 2:24:23 PM PDT by SeekAndFind
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Comment #3 Removed by Moderator

To: SeekAndFind

I believe bankruptcy court is a federal jurisdiction, you know, like civil rights violations which we hear about every day lately for Mr. Zimmerman.

I don’t see the standing here for this to be in state court.

So, tell the judge to STFU.


4 posted on 07/19/2013 2:26:15 PM PDT by Mouton (108th MI Group.....68-71)
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To: SeekAndFind

I guess this “judge” expect the city to create money out of thin air.


5 posted on 07/19/2013 2:26:18 PM PDT by Arm_Bears (Refuse; Resist; Rebel; Revolt!)
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To: SeekAndFind

And she’s gonna tell on us. LOL

She’s gonna get swept aside.


6 posted on 07/19/2013 2:27:00 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Mouton

Hey Judge, when the state goes BK, you will lose your income too so make plans now to get a job you are qualified for, try over at Arlington Park in Ill cleaning out horse stables.


7 posted on 07/19/2013 2:27:27 PM PDT by Mouton (108th MI Group.....68-71)
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To: Mouton

Here’s the judge’s reasoning:

http://www.theglobeandmail.com/report-on-business/international-business/us-business/michigan-judge-orders-withdrawal-of-detroit-bankruptcy-petition/article13323992/

The state court judge in Michigan’s capital of Lansing ordered Orr to withdraw the bankruptcy petition because the state law that allowed Snyder to approve the bankruptcy violated the Michigan Constitution. The governor lacks the power to “diminish or impair pension benefits,” according to the ruling by Ingham County Circuit Court Judge Rosemarie Aquilina.


8 posted on 07/19/2013 2:28:32 PM PDT by SeekAndFind
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To: SeekAndFind

Contractual obligations go out of the window in Federal Bankruptcy Court. GM had contractual obligations to bondholders which evaporated 5 years ago in bankruptcy court.


9 posted on 07/19/2013 2:29:13 PM PDT by expat2
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To: SeekAndFind

Judges cant change a bankrupt city into a solvent one with a ruling, through legal alchemy. Regardless of legal status, Detroit is still broke, and pensioners can be assured that they will be too.


10 posted on 07/19/2013 2:31:27 PM PDT by RFEngineer
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To: cripplecreek

Actually this is an interesting case on state’s rights.

Can a state through it’s constitution or own laws limit when an individual, corporation or municipality files for federal bankruptcy relief?

My guess is not. I think you are right and the Federal judge will vacate the State judge’s order.


11 posted on 07/19/2013 2:33:37 PM PDT by DannyTN
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To: SeekAndFind
Just a reminder of Rick Snyder's utter disregard for what these people want. He brushed off Obama when Obama came to try and stop the RTW law. He's a liberal but "most" things come down to dollars and sense with him.

Gov. Snyder reveals his conversation with President Barack Obama

"He wasn't pleased with Right to Work," Mr. Snyder reveals for the first time.

And the governor's response?

Short, sweet and to the point. "I said thank you for sharing that with me."

And that was it?

"Pretty much, yeah," the GOP governor glibly recalls.

12 posted on 07/19/2013 2:34:06 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: SeekAndFind

A wise Latina?


13 posted on 07/19/2013 2:34:59 PM PDT by HChampagne
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To: RFEngineer

Where is the constitutional right against insolvency? Broke is broke. I mean who is protected here by the constitution? The debtors? The creditors? The taxpayers? This judge is just plain high.


14 posted on 07/19/2013 2:35:05 PM PDT by fhayek
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To: SeekAndFind

You can’t get blood from a stone.
(unless you hit someone on the head with it)


15 posted on 07/19/2013 2:35:26 PM PDT by Berlin_Freeper (Obama makes Jeantel sound like Einstein.)
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To: expat2
True that but the interesting twist is the ability or Constitutional inability to initiate the bankruptcy in the first place.

When all is said and done, it would appear that the bankruptcy will proceed but with the pensions kept off-limits, much as a student loan not being dischargable. Naturally, the pensions are at the root of the bankruptcy so it will be a circle jerk of the first order of magnitude.

16 posted on 07/19/2013 2:35:29 PM PDT by NonValueAdded (Unindicted Co-conspirators: The Mainstream Media)
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To: SeekAndFind
This was the most amazing BS

"It's cheating sir, and it's cheating good people who work," Aquilina told assistant state Attorney General Brian Devlin. "It's also not honoring the [United States] president, who took [Detroit automakers] out of bankruptcy."

17 posted on 07/19/2013 2:35:43 PM PDT by mykroar (China and Russia are playing chess while Obamas's playing 52 card pick-up.)
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To: expat2

Yes, I believe that is part of the point of filing for bankruptcy.

The only thing they could argue is that GM’s shareholders didn’t have a line in the MI Constitution saying their pensions couldn’t be reduced/impaired.

Still I’d like to see how they get blood from stones though. If you’re broke, I don’t know how you pay the pension obligations.


18 posted on 07/19/2013 2:36:13 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: SeekAndFind

Another “Wise Latina.”


19 posted on 07/19/2013 2:36:22 PM PDT by dfwgator
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To: SeekAndFind

Really? What does it matter what any Judge rules. The fact is the place is a shit hole and has been bankrupt for many years and will never, let me repeat that, NEVER be solvent. Do the bankruptcy and move on.


20 posted on 07/19/2013 2:36:51 PM PDT by SECURE AMERICA (Where can I go to sign up for the American Revolution 2013 and the Crusades 2013?)
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To: SeekAndFind
Aquilina said she would make sure President Obama got a copy of her order.

“I know he’s watching this,” she said, predicting the president ultimately will have to do something to make sure existing city workers’ pension agreements are honored.

Impeach her. She's essentially calling for a dictatorship. Obama simply executes the laws written by Congress. A judge should at the very least understand the operations of the US Constitution.

21 posted on 07/19/2013 2:37:04 PM PDT by 1010RD (First, Do No Harm)
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To: SeekAndFind

It’s interesting how a judge will read “shall not be diminished or impaired” one way here but “shall not be infringed” a completely different way somewhere else.


22 posted on 07/19/2013 2:37:05 PM PDT by Track9 (hey Kalid.. kalid.. bang you're dead)
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To: SeekAndFind

Under normal circumstances, what you have accrued means what you have accrued to date. Some judge a long time ago in CA deemed that to mean whatever your contract said you WILL accrue and that is what the unions there base their claims on.
They all need to go to a defined contribution plan, but the unions would rather bankrupt the country first.


23 posted on 07/19/2013 2:37:14 PM PDT by Rusty0604
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To: Arm_Bears

No. The hack judge expects U.S. taxpayers to bailout bankrupt cities.
Never mind the fact that decades and decades of liberal policies and
Union Thugs have reduced this once active city to a current cesspool
city. She wants U.S. taxpayers to foot the bill.


24 posted on 07/19/2013 2:37:15 PM PDT by tennmountainman
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To: mykroar

In many cases bankrputcy cheats a lot of people out of money.

How often do we hear of state judges stopping bankruptcies because it’s “cheating”? They occur all the time. They are broke, they can’t pay, they can’t meet obligations, that’s why they are bankrupt.

Detroit is broke. It will continue to be broke. It will become even more broke than it is now.


25 posted on 07/19/2013 2:38:53 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: SeekAndFind

One can find a “Goofy Judge” to block anything.


26 posted on 07/19/2013 2:38:57 PM PDT by AEMILIUS PAULUS (It is a shame that when these people give a riot)
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To: RFEngineer

Judges cant change a bankrupt city into a solvent one with a ruling, through legal alchemy.
*******
Nicely said. Legislative monitization. lol


27 posted on 07/19/2013 2:39:12 PM PDT by Starboard
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To: Mouton
The feds would have standing if the retirement was covered by Federal law. Lets say under title nine.
28 posted on 07/19/2013 2:40:06 PM PDT by Domangart
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To: 1010RD

” Impeach her. She’s essentially calling for a dictatorship.”

No thanks, we already have one.


29 posted on 07/19/2013 2:42:13 PM PDT by stephenjohnbanker (K I L L T H E B I L L !!)
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To: SeekAndFind
County judge.

'nuff said.

30 posted on 07/19/2013 2:42:40 PM PDT by Timber Rattler (Just say NO! to RINOS and the GOP-E)
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To: DannyTN

I agree. The “dishonor Obama” comment, if true, is ridiculous beyond belief and indicative of a stupid judge. Nevertheless, the provision in the State Constitution does present an interesting legal issue. It seems to me a State should have the right to protect pensions like this, regardless of the sanity of the provision. It’s a State and its political subdivisions and they should have the right to determine such matters, but I do think it will be overturned via Federal pre emption.


31 posted on 07/19/2013 2:43:12 PM PDT by A_Former_Democrat (LEAVE THE ZIMMERMANS ALONE . . . NOT guilty . . .you LOST Now SHUT UP)
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To: Arm_Bears
I guess this “judge” expect the city to create money out of thin air.

I suspect her ruling -- which she knows to be a loser on appeal -- was a sop to her constituency.

32 posted on 07/19/2013 2:43:26 PM PDT by martin_fierro (< |:)~)
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Comment #33 Removed by Moderator

To: tennmountainman

” No. The hack judge expects U.S. taxpayers to bailout bankrupt cities.”

Yep.


34 posted on 07/19/2013 2:43:49 PM PDT by stephenjohnbanker (K I L L T H E B I L L !!)
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To: tennmountainman

The scary part is that this is really quite minor compared to the debt many cities have on top of the debt the nation has.


35 posted on 07/19/2013 2:44:11 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: DannyTN

And what about taxpayers rights? The unions get the officials elected who in turn approve these benefits that cannot ever be paid under the assumption that the taxpayers will pay or else.
Time for taxpayer revolt!


36 posted on 07/19/2013 2:44:54 PM PDT by Rusty0604
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To: SeekAndFind

And I thought it was just racists.


37 posted on 07/19/2013 2:46:29 PM PDT by fwdude ( You cannot compromise with that which you must defeat.)
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To: SeekAndFind

Bimbos come in back robes too.

Remember the “supreme” court.

The day is soon when we tell these undereducated minions to shove it.


38 posted on 07/19/2013 2:50:45 PM PDT by Da Coyote
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To: A_Former_Democrat

So the State has a right to enslave the few tax paying citizens left to pay for the bloated pensions of public employees because the political officials that agreed to the pensions were bought and paid for by the public employee unions?


39 posted on 07/19/2013 2:51:13 PM PDT by Rusty0604
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To: SeekAndFind

Words mean things. Does anyone know what part of the Constitution she cited in order to rule the bankruptcy “un-Constitutional?”


40 posted on 07/19/2013 2:52:06 PM PDT by ez (Muslims do not play well with others.)
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To: Mouton

No provision for Bankruptcy for states.


41 posted on 07/19/2013 2:56:21 PM PDT by Kozak ("Send them back your fierce defiance! Stamp upon the cursed alliance! To arms, to arms.....")
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To: DannyTN

My guess is possibly, but the state court has no jurisdiction once bankruptcy was files and the proper place to make an argument about the constitutionality of the filing would be in the Federal bankruptcy court.


42 posted on 07/19/2013 2:56:46 PM PDT by Piranha (Power is not only what you have but what the enemy thinks you have - Saul Alinsky)
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To: SeekAndFind

Apparently this judge believes it is okay to write rubber checks and they won’t bounce just because she says so. Perhaps she’s been watching Obama, Geithner and Bernanke for 5 years and believes if the federal government get away with writing checks without sufficient funds the state and local government can as well.

No matter what this “naive” judge says or does, the pension checks are going to start bouncing. That’s when the rubber will truly hit the road.

Be prepared for Obama to demand Congress compel the Pension Benefit Guaranty Corporation, set up to insure only private pensions and completely funded by insurance premiums from companies, to take on Detroit’s public worker pensions. Any Congressman who dares to oppose this taking of private property will be labeled a racist so McConnell, Boehner, McCain, Graham, and the rest will trip over themselves passing the legislation.

After the pension are taken care of by private industry, expect a push for billions to fund public works and infrastructure projects to rebuild Detroit.


43 posted on 07/19/2013 2:56:55 PM PDT by Soul of the South (Yesterday is gone. Today will be what we make of it.)
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To: SeekAndFind

The U.S. Bankruptcy Code trumps state law. It is called federal preemption, a concept most first year law students are familiar with.

Of course, since the judge is a Democrat, she only has to apply the laws that she likes when she feels like it.


44 posted on 07/19/2013 2:57:15 PM PDT by Bubba_Leroy (The Obamanation Continues)
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To: Mouton
Didn't the public employee unions greed result in astronomical taxes, wholesale flight out of town, leaving only population of parasites and overpaid bureaucrats?
presumably including clueless judges.

I wonder when the position was born that "you can't get blood out of a turnip" except when it involves public employees.

If the City of Detroit is ever resurrected, it is doomed to fail again if public unions, all of them, are allowed to exist. Public employment of the incompetent as a hidden welfare program, has been tried and failed.
It's not rocket science, make public employee wages, including benefits, never higher than the average private sector similar job

And secondly, bar forever affirmative action, and make all positions competitive, meaning taking and passing a competency test; highest scores get hired first, color blind and politics blind.

Ignore common sense at your peril.
Leave welfare to the welfare (not a typo>) welfare industry.

Tried that, monumental FAIL!

45 posted on 07/19/2013 2:58:21 PM PDT by publius911 (Look for the Union label, then buy something else.)
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To: SeekAndFind

She just wants to keep HER future pension safe.


46 posted on 07/19/2013 2:59:19 PM PDT by Mark (Obama is more confused than a hungry baby in a topless bar)
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To: fhayek
Where is the constitutional right against insolvency? Broke is broke.

That's a very simple but important point. The Michigan constitution didn't say that this applied to public entities but not private entities.

Are all pension adjustments for private companies that go bankrupt now null and void in Michigan according to this interpretation, or does this only apply to public entities with SEIU and possibly NEA employees?

Frankly, I don't think she has judicial standing here, anyway. I've heard shee's a county judge, and therefore a state level municipal bankruptcy should be out of her jurisdiction. The outrageous expansion of judge's power in recent decades cannot be what the Founders intended.

47 posted on 07/19/2013 2:59:24 PM PDT by Pearls Before Swine
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To: ez

It was the state constitution and not the Federal constitution.


48 posted on 07/19/2013 2:59:54 PM PDT by Piranha (Power is not only what you have but what the enemy thinks you have - Saul Alinsky)
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To: NonValueAdded

I think the pensions would have priority under Federal laws anyway. The judge may have some leeway to reduce the liability, but I would expect the pensions to take the softest hit of anyone.


49 posted on 07/19/2013 3:00:05 PM PDT by DannyTN
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Comment #50 Removed by Moderator


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