Boy it is a sticky wicket. The Unions are claiming 10 admendment up the ying yang as State law denotes the State may have to pick up the Pensions, yet does this precident still exist if they go the Bankruptcy Route. Some legal eagles here in MI have pontificated these circumstances could fast track all these suits up to higher Courts....
I’m sure that’s right. And the ones who will be unquestionably screwed are the small unsecured creditors who will get nothing, whereas for the big pension funds, it’s just a matter of who pays.
I cannot see any possible way they win this. Bankruptcy laws exist under the power explicitly granted to Congress by the Constitution. If municipalities have a right to seek that protection (the statute clearly says they do), then stopping Detroit from filing will require some really creative lawyering and judging.