Green Room

Breaking: Judge overrules objections to Detroit bankruptcy

posted at 2:28 pm on July 24, 2013 by

Looks like Detroit’s bankruptcy is definitely on:

When more news comes, I’ll add it as a link, but this is bad news for the unions, as NBC reports:

The PEUs had wanted to stop the bankruptcy under the state constitution, which requires municipalities to guarantee pension obligations. Municipal bankruptcies, however, are within federal jurisdiction since the Depression.  This means that Detroit can force unions to negotiate on pension terms in a bankruptcy proceeding — still a politically dangerous task, but one that will be necessary to unwind the massive debt load of the city.

Update: The Detroit News has more:

A bankruptcy judge has overruled objections to the city’s bankruptcy filing, freezing several lawsuits filed against Detroit and will allow the bankruptcy case to proceed in federal court.

U.S. District Judge Steven Rhodes also decided Wednesday that an automatic stay triggered by Detroit’s Chapter 9 filing extends to Emergency Manager Kevyn Orr, Gov. Rick Snyder and members of the restructuring team.

The decision comes after city lawyers — during a hearing that lasted almost two hours over the biggest municipal bankruptcy case in U.S. history — argued Wednesday morning that Detroit would be “irreparably harmed” if retirees were able to block its Chapter 9 filing.

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But I thought this was illegal because it was insulting to Obama or something…

NerwenAldarion on July 24, 2013 at 2:31 PM

LEAVE BARACK ALONE!

/The Honorable Rosemary Aquilina

Christien on July 24, 2013 at 2:33 PM

Did the bankruptcy judge CC Barry on this opinion?

blammm on July 24, 2013 at 2:33 PM

Isn’t this disrespecting Obama’s honor also?

Bitter Clinger on July 24, 2013 at 2:35 PM

this will get very interesting very quickly but first we will be subjected to a week’s worth of horror stories of helpless retirees losing their pensions, and hey that’s a very tough deal but it is good to see reality has not been declared unconstitutional

DanMan on July 24, 2013 at 2:37 PM

In defeat for employee unions, federal judge rules Detroit bankruptcy can proceed

The unions were one of the big drivers that destroyed Detroit. Eventually you run out of other people’s money – even if your state constitution says you wont.

gwelf on July 24, 2013 at 2:38 PM

I can’t believe that there are people stupid enough to argue that state property law trumps Federal bankruptcy law.

blammm on July 24, 2013 at 2:41 PM

But it dishonors Father Obama!

The Rogue Tomato on July 24, 2013 at 2:45 PM

I haven’t looked recently, but I wonder how munis are responding to this? It’s not a guaranteed investment any longer, and thank god for that. Eventually math catches up to wishful thinking and political promises.

beatcanvas on July 24, 2013 at 2:47 PM

I haven’t looked recently, but I wonder how munis are responding to this? It’s not a guaranteed investment any longer, and thank god for that. Eventually math catches up to wishful thinking and political promises.

beatcanvas on July 24, 2013 at 2:47 PM

Government entities might just decide that defined-benefit pensions aren’t so good after all.

Bitter Clinger on July 24, 2013 at 2:53 PM

this will get very interesting very quickly but first we will be subjected to a week’s worth of horror stories of helpless retirees losing their pensions, and hey that’s a very tough deal but it is good to see reality has not been declared unconstitutional

DanMan on July 24, 2013 at 2:37 PM

They don’t have to wipe out everybody’s pensions. Just cut them down to a sane level for retirees, and eliminate them entierly for current employees.

Ward Cleaver on July 24, 2013 at 2:57 PM

I feel dishonored because Obama and this judge were dishonored. Something smells racist about this whole thing.

guido911 on July 24, 2013 at 3:02 PM

But Obama is watching!!!!

portlandon on July 24, 2013 at 3:05 PM

Oh but what are all those 50 year old retires going to do?

bsinc1962 on July 24, 2013 at 3:05 PM

U.S. District Judge Steven Rhodes has been reported to attack watch.

JusDreamin on July 24, 2013 at 3:14 PM

Just In!!! Detroit renamed OBAMAGRAD.

MaiDee on July 24, 2013 at 3:31 PM

The joy of this is that former Dem pols negotiated with PEUs for so many of these benefits in past deals. Now, their successor Dem pols are at the helm when these benefits evaporate.

BuckeyeSam on July 24, 2013 at 3:36 PM

Did the bankruptcy judge CC Barry on this opinion?

blammm on July 24, 2013 at 2:33 PM

Let’s all b0mb the White House twitter account with links to the judge’s ruling.

Nutstuyu on July 24, 2013 at 3:38 PM

PEU member: “Hey, I know I only had $35,767.88 taken out of my paycheck over the years, but I earned that $994,356.44 pension!”

BigAlSouth on July 24, 2013 at 3:42 PM

Another devastating blow to Unions and the DNC!

Need to park a satellite over Detroit and create a pay per view station where you can watch its serfs riot, self destruct and burn the city to the ground from a safe distance in Real Time.

Just a thought.

Jack Deth on July 24, 2013 at 3:49 PM

Reckoning

Bmore on July 24, 2013 at 3:50 PM

Does Obama still get his image on Mt Rushmore?

faraway on July 24, 2013 at 3:50 PM

This guy is clearly racist and needs to get down on his knees and beg forgiveness from The One.

Chris of Rights on July 24, 2013 at 3:57 PM

Dang, I thought it might be more fun to watch the other way.

Detroit slashing city services by 60-70% in order to pay pensions.

May still come down to that, I guess.

I still think some rich libs should get together and buy the city.

Second chance for Utopia!

Meremortal on July 24, 2013 at 3:57 PM

Part of me wants the bankruptcy judge to put the unionistas at the very back of the line, behind even the equally-unsecured bondholders, so they get nothing. I’ll settle for the rule of law here – i.e. the unions get the same pennies on the dollar the bondholders do.

Steve Eggleston on July 24, 2013 at 4:04 PM

Another devastating blow to Unions and the DNC!

Need to park a satellite over Detroit Detriot and create a pay per view station where you can watch its serfs riot, self destruct and burn the city to the ground from a safe distance in Real Time.

Just a thought.

Jack Deth on July 24, 2013 at 3:49 PM

You misspelled Detriot.

Steve Eggleston on July 24, 2013 at 4:05 PM

LEAVE BARACK ALONE!

/The Honorable Horrible Rosemary Aquilina

Christien on July 24, 2013 at 2:33 PM

FIFY.

either orr on July 24, 2013 at 4:08 PM

Does Obama still get his image on Mt RushmoreTrashmore?

faraway on July 24, 2013 at 3:50 PM

FIFY.

either orr on July 24, 2013 at 4:09 PM

Very few things going right in the Liberal/Parasite world… And they won the 2012 elections?… Thank the Founding Fathers who created a system that even when the fools win elections the power of the system will eventually crush them…

mnjg on July 24, 2013 at 4:15 PM

Federal exclusivity of bankruptcy was obvious to everyone except the Obama Phone Judge in state court.

Attila (Pillage Idiot) on July 24, 2013 at 4:16 PM

O

BA

MA

Hey Libtards. Chant it loud, chant it proud.

GrannyDee on July 24, 2013 at 4:33 PM

blockquote>Jack Deth on July 24, 2013 at 3:49 PM

No can do – EPA rules on demolition preclude burning.

Zomcon JEM on July 24, 2013 at 4:36 PM

I wonder how long before Canada moves troops to Windsor

Iblis on July 24, 2013 at 4:37 PM

This Judge realizes this dishonors Obama right?

I think every single public employee in Michigan should immediately have their pension include a $Trillion dollar lump sum payment due at retirement. Why not? If the state has to pay it per the State Constitution, and any single stop light town in Michigan can vote itself a public employee pension that bankrupts the town that the state of Michigan has to pay… why not?

DANEgerus on July 24, 2013 at 4:47 PM

Municipal bankruptcies, however, are within federal jurisdiction since the Depression.

As much as I’m glad this happened, it disturbs me that the feds are involved in a local matter. Michigan should have paid the price for putting something so stupid in their constitution.

Kafir on July 24, 2013 at 5:14 PM

it disturbs me that the feds are involved in a local matter.

Bankruptcy is, and always has been, a Federal matter….

Article 1, Section 8, Clause 4

SpudmanWP on July 24, 2013 at 5:37 PM

Time to go to the Obama “stash!” That’s outside of a judge’s ruling.

KCsecurity1976 on July 24, 2013 at 5:40 PM

Jack Deth on July 24, 2013 at 3:49 PM

Robocop remake is a reality TV show?

malclave on July 24, 2013 at 6:56 PM

Kafir on July 24, 2013 at 5:14 PM

Other way round – local judge tried to impose her will in a Federal matter.

PJ Emeritus on July 24, 2013 at 7:29 PM

Jack Deth on July 24, 2013 at 3:49 PM

Nice nick.

Jeff Weimer on July 24, 2013 at 7:30 PM

Bite us barrack

crosshugger on July 24, 2013 at 7:40 PM

Just In!!! Detroit renamed OBAMAGRAD.

MaiDee on July 24, 2013 at 3:31 PM

It won’t be long and we’ll all be living in OBAMASTAN.

HiJack on July 24, 2013 at 8:45 PM

It had to happen, but I do feel bad for the 70 and 80 year old retirees.

Obama and his honor, not so much.

talkingpoints on July 24, 2013 at 10:47 PM

There was already an illegal hijacking of the GM shareholders by the union car assemblers. (and a complete hosing of the non-union employees of parts suppliers). Watch for extra-legal taxpayer bailouts of gov. employees pensions.

trl on July 25, 2013 at 12:27 AM

All of you Detroit pensioneers who gleefully voted for every Democrat you could find for some sixty years thinking you could live high on the government hog: TIME TO EAT THIS CRAP SANDWICH AND SMILE!! YOU MADE IT, YOU EAT IT!!!

Obama has a city, and its name is Detroit.

Bubba Redneck on July 25, 2013 at 3:35 AM

Does Obama still get his image on Mt Rushmore?

faraway on July 24, 2013 at 3:50 PM

No, his son Trayvon does.

Bubba Redneck on July 25, 2013 at 3:38 AM

Aljazeera is getting a network in the US. I think being close to Dearborn makes Detroit a perfect Hub for them. The hot new fashion in Michiganistan is the Hijab with the Wolverine stripes.

Gedge on July 25, 2013 at 5:06 AM