Posted on 10/06/2004 8:11:43 PM PDT by Cultural Jihad
Bankruptcy judge orders Lockyer to dismiss suit against Enron
The Associated Press
Last Updated 2:17 pm PDT Wednesday, October 6, 2004
SACRAMENTO (AP) - A federal bankruptcy judge has ordered California Attorney General Bill Lockyer to dismiss a lawsuit against Enron Corp., officials said Wednesday. Lawsuits against companies that are in bankruptcy are subject to automatic stays or can be dismissed, but Lockyer argued that should not apply to police or regulatory lawsuits to enforce laws.
Lockyer sued Enron in state court in June for commodities fraud and unfair competition. Judge Arthur J. Gonzalez, a bankruptcy judge in the Southern District of New York, ruled last month that Lockyer's suit is preempted under the bankruptcy law. Gonzalez, who is overseeing Enron's bankruptcy, gave the attorney general until Oct. 18 to dismiss the case.
Federal bankruptcy law does allow lawsuits aimed at protecting public health or safety, Gonzalez said. But because Lockyer's suit was seeking financial restitution, the "police power exception" doesn't apply, he said.
(Excerpt) Read more at sacbee.com ...
Dismiss lawsuit against Enron. Why not they only ripped off Californians a few million. What's that between friends.
because you can't get blood out of a rock. all Lockyer can do is get in line with the rest of the Creditors and hope for the best.
Darn. Bill will just have to use some other vehicle to get his name in the papers. How's a guy supposed to run for governor under these conditions?
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