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.
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.
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!
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.