Association of Retired Employees v. City of Stockton (In re City of Stockton)
United States Bankruptcy Court, E.D. California
1Opinion of the Court
OPINION
CHRISTOPHER M. KLEIN, Bankruptcy Judge.
The retired employees of the City of Stockton want this court to order the City to keep paying for their health benefits during this chapter 9 case. The difficulty is that 11 U.S.C. § 904 forbids the court from using any of its powers to “interfere with” property or revenues of a chapter 9 debtor. Accordingly, although the City’s unilateral interim reduction of retiree health benefit payments may lead to tragic hardships for individuals in the interval before their claims are redressed in a chapter 9 plan of adjustment, the motion for injunctive…
2Cases cited16 opinions
- Stern v. MarshallSupreme Court of the United States · 2011
- Garcia v. San Antonio Metropolitan Transit AuthoritySupreme Court of the United States · 1985
- National League of Cities v. UserySupreme Court of the United States · 1976
- National Labor Relations Board v. Bildisco & BildiscoSupreme Court of the United States · 1984
- Bank of Columbia v. OkelySupreme Court of the United States · 1819
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- In re Jefferson CountyUnited States Bankruptcy Court, N.D. Alabama · 2012
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