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Judge halts state lawsuits seeking to block Detroit bankruptcy
CNBC ^ | 7/24/13 | Scott Cohn

Posted on 07/24/2013 11:33:25 AM PDT by illiac

A federal bankrutpcy judge ruled Wednesday that federal courts will decide if Detroit is eligible for bankruptcy, staying challenges to the bankruptcy in state court.

Detroit's Emergency Manager Kevyn Orr—a bankruptcy expert appointed by Gov. Rick Snyder earlier this year to oversee Detroit's finances—has said the federal bankruptcy filing is necessary to get the city out from under some $18 billion in liabilities.

But the city's employee unions argued the bankruptcy is an end-run around the state constitution, which protects their pension benefits. The unions backed a series of lawsuits filed in Michigan courts to block the bankruptcy. Last week, Ingham County Circuit Judge Rosemarie Aquilina ruled the bankruptcy filing unconstitutional, but a state appeals court put her ruling on hold, and Orr argued the federal court should make that stay indefinite.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events; US: Michigan
KEYWORDS: bankruptcy; chapter9; detroit; economy; lawsuit; michigan; rosemaryaquillina; ruling
And the beat goes on....
1 posted on 07/24/2013 11:33:25 AM PDT by illiac
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To: illiac

Yeah!!!!


2 posted on 07/24/2013 11:36:52 AM PDT by House Atreides ( D)
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To: illiac

What matters is the suits got filed.

Lawyers will get paid for the effort


3 posted on 07/24/2013 11:37:36 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Travon... Felony assault and battery hate crime)
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To: illiac
But the city's employee unions argued the bankruptcy is an end-run around the state constitution, which protects their pension benefits.

Translates to: "Screw Dee-troit...Ah wants mah money."

4 posted on 07/24/2013 11:44:40 AM PDT by RobinOfKingston (Democrats--the party of Evil. Republicans--the party of Stupid.)
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To: illiac
In an interview before the hearing, Orr said the majority of the pensions are funded, but there remains a $3.5 billion shortfall—and the city has no way to make it up.

"The money's not there," Orr said.

Duh. That fact is conveniently ommitted in everything I read. There ain't no money. Assuming for the moment that the MI constitution does indeed guarantee these pensions, does it also make provisions for conjuring up the money out of thin air?

Liberals and liberal unions *never* see the NO MONEY fact as having any relevance to their desires. In Freudian terms, these unions are nothing more than a collective Id.

5 posted on 07/24/2013 11:45:20 AM PDT by ChildOfThe60s (If you can remember the 60s.....you weren't really there)
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To: illiac

Funny how selective Leftists can be on the subject of States Rights...


6 posted on 07/24/2013 11:45:50 AM PDT by Buckeye McFrog
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To: illiac

So they will show how you can get money out of thin air ... forget everything else that needs money what ever there is of it ...give them IOU’s or warrants like CA did to their teachers ...


7 posted on 07/24/2013 11:46:24 AM PDT by SkyDancer (Live your life in such a way that the Westboro church will want to picket your funeral.)
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To: illiac

But, but....What about honoring Obama??


8 posted on 07/24/2013 11:47:31 AM PDT by VanDeKoik
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To: RobinOfKingston

The Feds (ie our wallets) guarantee the leeches will be paid their pensions.


9 posted on 07/24/2013 11:48:35 AM PDT by Ingtar (The NSA - "We're the only part of government who actually listens to the people.")
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To: cripplecreek

MI ping.


10 posted on 07/24/2013 11:49:32 AM PDT by Squawk 8888 (I'd give up chocolate but I'm no quitter)
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To: illiac

Pension bankruptcy is probably the best lesson Detroit teachers could give their students - “Don’t spend money you don’t have!”


11 posted on 07/24/2013 11:50:19 AM PDT by P.O.E. (Pray for America)
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To: illiac

The MI constitution of 1963 appears to be written with unions in mind, and provides for pri-planned suicide. Seems to me the state needs to... do a bit of shrugging:

§ 24 Public pension plans and retirement systems, obligation.
Sec. 24. The accrued financial benefits of each pension plan and retirement system of the
state and its political subdivisions shall be a contractual obligation thereof which shall not be
diminished or impaired thereby.


12 posted on 07/24/2013 11:50:45 AM PDT by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: illiac

“constitution, which protects their pension benefits”

Really, that is what a Constitution does?


13 posted on 07/24/2013 11:52:36 AM PDT by edcoil (Something wonderful is going to happen today!)
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To: rockrr
Why aren't all the Confederate apologists here on this thread supporting the unions?

Could there be a more clear cut violation of "state's rights" than a federal bankruptcy court judge nullifying the provisions of the Michigan constitution?

14 posted on 07/24/2013 11:58:30 AM PDT by wideawake
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To: illiac

Federal Bankruptcy judges are very territorial about their jurisdiction. They have always construed the Constitution as meaning that the Federal Bankruptcy laws are the exclusive bailiwick of the Federal Judiciary, and they trump state courts. Running afoul of a bankruptcy judge by pushing something in state court contrary to their wishes can be hazardous to a legal career.


15 posted on 07/24/2013 11:58:56 AM PDT by henkster (The 0bama regime isn't a train wreck, it's a B 17 raid on the rail yard.)
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To: ChildOfThe60s

Here is a thought. The unions should take the money that is funded for them and split it equally amongst all members.

This way it is fair and equitable.


16 posted on 07/24/2013 12:02:27 PM PDT by EQAndyBuzz (The reason we own guns is to protect ourselves from those wanting to take our guns from us.)
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To: ChildOfThe60s
In an interview before the hearing, Orr said the majority of the pensions are funded, but there remains a $3.5 billion shortfall—and the city has no way to make it up. "The money's not there," Orr said.

Duh. That fact is conveniently ommitted in everything I read. There ain't no money. Assuming for the moment that the MI constitution does indeed guarantee these pensions, does it also make provisions for conjuring up the money out of thin air? Liberals and liberal unions *never* see the NO MONEY fact as having any relevance to their desires. In Freudian terms, these unions are nothing more than a collective Id.

Most government contracts have a "Non-Funding" clause that says essentially, "If our budget doesn't get funded we don't have to honor this contract and pay for it"

17 posted on 07/24/2013 12:03:58 PM PDT by Auntie Dem (Hey! Hey! Ho! Ho! Terrorist lovers gotta go!)
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To: illiac
. But the city's employee unions argued the bankruptcy is an end-run around the state constitution, which protects their pension benefits

Idiots still don't grasp the facts.....their unreasonable pensions stolen from defenseless taxpayers are the reason for the bankruptcy.....they can join the thousands of investors and pensioners that got screwed when Obama bailed out the auto companies and gave the money to the unions!!!! How's it feel boys!!!!!

18 posted on 07/24/2013 12:07:18 PM PDT by ontap (***)
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To: RobinOfKingston

It’s a question of jurisdiction. Once the BR is filed, there is an automatic stay which means that no state court action can be taken. I knew this would be the order. The BR court however, can take the constitutional issue into consideration.


19 posted on 07/24/2013 12:09:58 PM PDT by Mercat
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To: illiac

20 posted on 07/24/2013 12:11:03 PM PDT by xp38
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To: Springman; cyclotic; netmilsmom; RatsDawg; PGalt; FreedomHammer; queenkathy; madison10; ...
Sorry your honor but we're going to dishonor Obama after all.

Image Hosted by ImageShack.us

Michigan legislative action thread
21 posted on 07/24/2013 12:11:07 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: wideawake

“Could there be a more clear cut violation of “state’s rights” than a federal bankruptcy court judge nullifying the provisions of the Michigan constitution? “

Without federal bankruptcy law and federal bankruptcy courts, any bankruptcy involving creditors from multiple states would be impossible as all creditors would file their own suits in their own local jurisdictions under their own codes. Such a situation could never be resolved.


22 posted on 07/24/2013 12:12:34 PM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: wideawake

If the people of Michigan wish to bail out Detroit I’m all for it.....so long as I don’t have to. I’m guessing when the 80% who have to pay the 20% who have been raping them for 50+ Years the answer will be a resounding “Go to hell”.


23 posted on 07/24/2013 12:13:20 PM PDT by ontap (***)
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To: illiac

Probably disturbing for those who didn’t want “exclusive jurisdiction” to mean EXCLUSIVE jurisdiction.


24 posted on 07/24/2013 12:23:58 PM PDT by ArmstedFragg (hoaxy dopey changey)
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To: C210N

Weren’t we told by the Liberals, on a multitude of occasions, that Constitutions were living documents?? Well it appears this one is currently on life support... yep!


25 posted on 07/24/2013 12:24:56 PM PDT by carlo3b (Speechless in Sugar Land)
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To: edcoil
Really, that is what a Constitution does?

In Michigan, yes it does, quite explicitly. See the language quoted in post #12 of this thread.

But that doesn't matter, because federal bankruptcy law trumps the State Constitution.

26 posted on 07/24/2013 12:28:04 PM PDT by Lurking Libertarian (Non sub homine, sed sub Deo et lege)
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To: catnipman

I agree with you. It demonstrates the Founders’ wisdom in enshrining the Supremacy Clause in our federal Constitution.


27 posted on 07/24/2013 12:31:20 PM PDT by wideawake
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To: ChildOfThe60s

We should ask the unions to spell “money.” The few smart ones will say

“M-O-N-E-Y”

Tell them they forgot the “F”


28 posted on 07/24/2013 12:37:03 PM PDT by henkster (The 0bama regime isn't a train wreck, it's a B 17 raid on the rail yard.)
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To: illiac
The state judge WAY over stepped her authority.

Article 1 Section 8 reads in part "...;To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;..."

The Constitution clearly enumerates the power to decide the rules for bankruptcies shall lie with Congress, not the States or the State's Constitutions.

29 posted on 07/24/2013 12:48:56 PM PDT by taxcontrol
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To: catnipman

The US Constitution clearly empowers Congress to set the rules for all bankruptcies. See Article 1 Section 8.


30 posted on 07/24/2013 12:51:05 PM PDT by taxcontrol
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To: taxcontrol
AND she was irked that the bankruptcy case dishonored OBAMA!
31 posted on 07/24/2013 12:56:14 PM PDT by xsmommy
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To: illiac

Public sector unions need to banned forever before they bankrupt the whole country.... Oh wait a minute, they basically already have.


32 posted on 07/24/2013 12:59:29 PM PDT by Bullish (Psalm 46)
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To: ontap
I’m guessing when the 80% who have to pay the 20% who have been raping them for 50+ Years the answer will be a resounding “Go to hell”.

In many ways the emergency manager law was the rest of the state telling Detroit "fix your problems or we will fix them for you". Detroit is in bankruptcy because it has what is probably the most toxic relationship with it's suburbs of any city in the US. In 1970 Detroit while not in good shape, was no worse than many urban areas of the US. Thanks to the actions of Colman Young and the kleptocracy of Kwame Kilpatric, the rest of the state refuses to bailout Detroit. Young is the Mayor most responsible for the toxic relationship between Detroit and it's suburbs.

33 posted on 07/24/2013 1:37:25 PM PDT by Fraxinus (My opinion, worth what you paid.)
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To: C210N

The Illinois State Constitution has a very similar provision. This was pointed out to me by a teacher, rather smugly in fact.

So I told her: “When the State is bankrupt you take can your copy of the Illinois Constitution down to the bank and see if they’ll cash it, you moron.”


34 posted on 07/24/2013 2:11:54 PM PDT by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
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To: cripplecreek; AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; ...

Thanks cripplecreek.


35 posted on 07/24/2013 8:02:42 PM PDT by SunkenCiv (It's no coincidence that some "conservatives" echo the hard left.)
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To: illiac

ANY state court judge KNOWS you can NOT violate the automatic stay without an order of stay relief from the bankruptcy court.

The state court judge opened themselves up to being investigated as part of the long line of detroit corruption.


36 posted on 07/25/2013 9:31:41 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Ingtar

Bankruptcy judges are appointed, they are glorified magistrates. They appointments are open for renewal every six years.

Next step, seed the bankruptcy courts with pro union leftist wack jobs.


37 posted on 07/25/2013 9:33:20 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory

“ANY state court judge KNOWS you can NOT violate the automatic stay without an order of stay relief from the bankruptcy court.”

I suspect she’s from an entitled class with no such knowledge or belief.


38 posted on 07/25/2013 9:34:50 AM PDT by TheThirdRuffian (RINOS like Romney, McCain, Dole are sure losers. No more!)
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To: Auntie Dem

THey could sell off parts of the city, that would get .....................................................................................................................2 cents.


39 posted on 07/25/2013 7:26:38 PM PDT by TomasUSMC ( FIGHT LIKE WW2, FINISH LIKE WW2. FIGHT LIKE NAM, FINISH LIKE NAM)
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To: ChildOfThe60s

that comparison is a great insult to Freudian ids :-)


40 posted on 07/25/2013 7:28:05 PM PDT by HiTech RedNeck (Whatever promise that God has made, in Jesus it is yes. See my page.)
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To: TomasUSMC

Give those abandoned properties to the public employees whose pensions they can’t afford to pay.

A fitting tribute I think. They OWN their mess.


41 posted on 07/25/2013 7:29:01 PM PDT by GeronL
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To: ChildOfThe60s

It does not guarantee the pension amounts or the form of these payments. Give them abandoned properties as payment.


42 posted on 07/25/2013 7:33:25 PM PDT by GeronL
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