Thank you for sharing!

Your article was successfully shared with the contacts you provided.
John Hansen

Within approximately one year of each other, the cities of Stockton, Calif., in June 2012, and Detroit, Mich., in July 2013, commenced municipal bankruptcy cases under Chapter 9 of the federal Bankruptcy Code. The two cities were the largest U.S, cities to ever file Chapter 9 bankruptcy cases. In each case a major financial obligation was the city’s unfunded pensions.

The two cities, however, took opposite approaches to their pension obligations. In the Detroit case, the city proposed and confirmed a plan of adjustment that reduced pensions; whereas in the Stockton case, the city proposed and confirmed a plan of reorganization that did not impair the pension rights of its employees or retirees, but achieved savings by other means. The difference appears to have stemmed at least in part from the fact that Detroit’s elected city officials were replaced by a manager appointed by the governor. By contrast, control over the Stockton case remained in the hands of the elected mayor and city council.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.