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In re City of Stockton, California
United States Bankruptcy Court for the Eastern District of California
478 B.R. 8 (2012)
The City of Stockton (defendant) filed for chapter 9 bankruptcy on June 28, 2012. Stockton adopted a budget that, by state law, had to be balanced. Stockton unilaterally reduced retiree health benefits to balance the budget. Retired Stockton employees (plaintiffs) filed a motion for an injunction prohibiting Stockton from implementing the reduction, a declaration that the reduction was unlawful, and an order compelling Stockton to pay for all retiree health benefits and attorney’s fees.
Rule of Law
Holding and Reasoning (Klein, J.)
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