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Thursday, July 25, 2013

Why Constitutional Protections Won’t Mean Diddly for Detroit’s Labor Unions in Bankruptcy

A federal judge yesterday threw out multiple union lawsuits challenging the constitutionality of Detroit’s bankruptcy filing and declared his courtroom the exclusive venue for future proceedings. This is a setback for the unions’ legal argument that the filing violates the state constitution in not holding their pension benefits harmless. It is also a strategic setback because they no longer have the option for shopping around for friendly judges who they have helped elect to state courts.

Via Reason, which links to a longer article in Bloomberg.

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