SCOTUS orders dismissal for Chrysler case

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The U.S. Supreme Court took a look at Chrysler's bankruptcy, but decided that the issue is moot and remanded it to the 2nd Circuit Court of Appeals with instructions to dismiss the case.

In September, three Indiana pension and construction funds asked the nation's highest court to reconsider their objections to the Chrysler bankruptcy proceedings that earlier this year resulted in the sale of most of the American automaker's assets to an Italian company.

The case of In re: Chrysler LLC, Debtor, Indiana State Police Pension Trust, et al., v. Chrysler LLC, et al., No. 09-285, centered on the bankruptcy of Chrysler. Indiana officials claimed the sale to Italian company Fiat unfairly favored Chrysler's unsecured stakeholders like the United Auto Workers ahead of the secured debt holders like the pension funds.

At a minimum, Indiana's funds lost $6 million in value during the bankruptcy sale, according to the state treasurer's office.

The Indiana State Police Pension Trust, Indiana State Teachers Retirement Fund, and the Indiana Major Moves Construction Fund joined together to request certiorari, asking the justices to decide whether bankruptcy proceedings similar to Chrysler should be allowed in the future. The court initially stayed the bankruptcy sale in June but then allowed it to proceed. That move to block the automaker's sale came after the 2nd Circuit Court of Appeals in New York had given it the green light. At the time, the high court did not consider the merits of the opponents' arguments and left the door open for this certiorari request.

The question presented is whether Section 363 of the bankruptcy code may freely be used as a "side door" to reorganize a debtor's financial affairs without adherence to the creditor protections provided by the Chapter 11 plan-confirmation process.

A paragraph-long summary disposition order was issued today, following the justices' final conference of the year Friday. Justices granted certiorari but dismissed the case.

"The judgment is vacated, and the case is remanded ... with instructions to dismiss the appeal as moot," the order says, citing the precedent of United States v. Munsingwear Inc., 340 U.S. 36 (1950). That case from the 8th Circuit Court of Appeals involved price-fixing claims, and the Supreme Court held that the established practice of dealing with an appeal that becomes moot while pending review is to reverse or vacate the judgment and direct that it be dismissed.


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  1. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  2. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

  3. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  4. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  5. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.