« Ind. Courts - "Veto of done deal could yet be undone" | Main | Courts - Chrysler lender responses now availble »

Sunday, June 07, 2009

Courts - Update on: Indiana pension funds' application for immediate stay filed with Supreme Court [Updated]

Early this morning, in this ILB entry I noted:

[Update at 7:70 am] Perhaps I am wrong, but I don't recall seeing the Indiana Attorney General's name on earlier documents.
Among the questions one might ask: Does this representation involve a change of heart, is it a US Supreme Court requirement, had the Treasurer solicited the State AG's involvement earlier?

A few minutes ago the ILB received this news release titled "Attorney General Greg Zoeller's statement on filing the State Treasurer's application for stay to the U.S. Supreme Court":

INDIANAPOLIS -- Indiana Attorney General Greg Zoeller issued the following statement today concerning the Attorney General's Office filing an application for a stay to the United States Supreme Court on behalf of our client, State Treasurer Richard Mourdock:

"The Treasurer of the State is a consitutional officer who is 'responsible for the safekeeping and investment of moneys and securities paid into the state treasury' (under Indiana Code 4-8.1-2-1), and I will represent him as a client to the best of my ability," Zoeller said.

"We have a good-faith basis upon which we seek the Supreme Court's relief and we intend to zealously represent our client," Zoeller added.

[Updated at 9:22 pm]] Tony Mauro of the Blog of Legal Times has a good summary of the current status of the Chrysler challenge, one that highlights the new involvement of the Indiana Attorney General. A quote:
Taken together, the challenges have hurdles including standing to overcome, and the Supreme Court may not want to stand in the way of an arrangement devised by the political branches that its supporters say will save thousands of jobs. But the applications also point out that if the high court does not intervene now, a deal that raises major questions relating to bankruptcy law and the power of the executive branch will go unreviewed, and the questions unanswered.

"The public is watching and needs to see that, particularly, when the system is under stress, the law will be honored and an independent judiciary will properly scrutinize the actions of the massively power executive branch," wrote Indiana Solicitor General Thomas Fisher, who sought a stay on behalf of three state funds that will lose out if the sale goes through. He says the deal could constitute a "sub rosa Chapter 11 reorganization plan" that violates the priority status of first-lien creditors in bankruptcy, and a misuse of so-called TARP funds. Also on the Indiana brief is a team of lawyers from White & Case led by partner Thomas Lauria. The case is titled Indiana State Police Pension Trust v. Chrysler LLC.

Posted by Marcia Oddi on June 7, 2009 05:38 PM
Posted to Courts in general | Indiana Government