Skip to comments.Judge halts state lawsuits seeking to block Detroit bankruptcy
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 Orra bankruptcy expert appointed by Gov. Rick Snyder earlier this year to oversee Detroit's financeshas 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 ...
What matters is the suits got filed.
Lawyers will get paid for the effort
Translates to: "Screw Dee-troit...Ah wants mah money."
"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.
Funny how selective Leftists can be on the subject of States Rights...
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 ...
But, but....What about honoring Obama??
The Feds (ie our wallets) guarantee the leeches will be paid their pensions.
Pension bankruptcy is probably the best lesson Detroit teachers could give their students - “Don’t spend money you don’t have!”
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.
“constitution, which protects their pension benefits”
Really, that is what a Constitution does?
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?
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.
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.
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"
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!!!!!
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.
“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.
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”.
Probably disturbing for those who didn’t want “exclusive jurisdiction” to mean EXCLUSIVE jurisdiction.
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!
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.
I agree with you. It demonstrates the Founders’ wisdom in enshrining the Supremacy Clause in our federal Constitution.
We should ask the unions to spell “money.” The few smart ones will say
Tell them they forgot the “F”
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.
The US Constitution clearly empowers Congress to set the rules for all bankruptcies. See Article 1 Section 8.
Public sector unions need to banned forever before they bankrupt the whole country.... Oh wait a minute, they basically already have.
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.
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.”
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.
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.
“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.
THey could sell off parts of the city, that would get .....................................................................................................................2 cents.
that comparison is a great insult to Freudian ids :-)
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.
It does not guarantee the pension amounts or the form of these payments. Give them abandoned properties as payment.