Over the weekend, lawyers representing three Indiana public employee pension funds, a collection of consumer advocacy groups and a widow of a Chrysler employee each filed emergency applications to the court asking for more time so they can file additional paperwork arguing why the court should overturn the sale.
The parties each argue that the New York bankruptcy rubber stamping[Ed]
judge who approved the sale last week misinterpreted the law. The Indiana pensioners contend the government's handling of Chrysler was a "ploy" to divert Chrysler's assets toward preferred unsecured creditors.
Sen. Richard Shelby, R-Ala., expressed his frustration Sunday over the Chrysler sale and the administration's overall handling of the auto industry bailout.
"The bondholders have been sacrificed. The unions have carried the day," he said on "FOX News Sunday."
The pensioners fear if the sale goes through, it will deprive them and the nation as a whole from getting a fair legal shake at challenging the administration's use of taxpayer money. In their filings, they contend the government without congressional approval "is using the bankruptcy system to re-order private property rights on a scale and in a way that America has never before seen."
Five consumer rights groups joined in their own petition to the court arguing against the terms of the sale which they say will prohibit all current and future legal claims against Chrysler. They contend the waiver of "successor liability" is a dangerous precedent that will encourage future bankruptcy filings to seek similar arrangements.
Patricia Pascale is presumably one person whose lawsuit against Chrysler will get tossed out of court by the successor liability provision. Her husband died of asbestos-related lung cancer and she's suing for damages. Pascale's trial is supposed to start next week but her lawyers say the Chrysler sale means her due process rights are being "trampled in a process that bears little resemblance to a fair or orderly judicial proceeding."
Cmitch is another person who is looking for a free paint job.
Foes of Chrysler Deal Await Supreme Court Decision - Political News - FOXNews.com