In what could become the first stone David has cast at Goliath, the U.S. Court of Appeals for the Second Circuit has decided to hear the appeal of the Indiana Pensioners. The WSJ reports that the Second Circuit will hear oral arguments on Friday the 5th, which will make bankruptcy emergence this week (as Chrysler and Obama had hoped) an impossibility. Furthermore, additional delays could jeopardize the case, which as Zero Hedge reported earlier, has to close by the 15th or Fiat is allowed to walk (whether it will chose to do so, considering the ridiculous taxpayer gift it is receiving, is another story).
From a legal perspective, the judges who will hear the appeal have lifetime appointments and don't have to be concerned about being re-appointed to a new 14 year term in about three months (don't worry Speed ball [a pun on Rogaine and very fast Mexican mice], you will get your 30 pieces of silver). Since one of the 2nd circuit judges is currently interviewing for a promotion, it will be interesting to see just who gets appointed.
And here is where the door to the Supreme Court of the United States opens. If a decision in favor of Chrysler at the 2nd circuit level differs from prior decisions on the priority of claims that other Appeals Courts have issued on bankruptcy issues, this case may have to advance to the Supreme Court to clarify any conflicts between courts at the same level. And once it gets here, there is no telling what speed the case may move with.
All in all, some very impressive gamesmanship by Lauria et al. As long as people keep fighting, fundamental rules of law and finance may yet be preserved and the buying up of electoral favors, i.e. UAW votes, in which the vast majority pays for the greed, laziness and stupidity of the few, whether it is Flint, Michigan or 85 Broad, may not be a done deal in this, what was once a truly great, country.
The case is 09-2311-mb in the Second Circuit.
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