San Bernardinom, a small Californian city, is the third city in the state forced to opt for bankruptcy in the last few weeks. This highlights the fact that the economic crisis is not over yet.

The elected officials of the 210,000 people in the city have authorized their city’s attorney to seek federal bankruptcy protection. The city is unable to pay the vendors, although a lot of measures have been taken like selling assets or cutting spending, and opting for bankruptcy has been the only possible solution.

The city is facing a budget shortfall of $45 million. City officials said the problem is weak property and sales tax revenue combined with escalating pensions and a loss of state redevelopment funds.

Stockton, a California city with almost 300,000 people was the first that filed bankruptcy on June 29. The second one was the small city of Mammoth Lakes this July 3.

The California Governor Jerry Brown didn’t want to speculate concerning other possible bankruptcy cases, instead declaring that the real problem is that the country, the states and the cities have lived beyond their means, and he specified that these finances were “means created by a mortgage bubble, by greed, by mistakes, by people not knowing what the hell they were doing, and millions of people have been hurt.”

Jim Spiotto, a Chicago attorney who tracks municipal bankruptcies, said that since Congress added chapter 9 to the bankruptcy code in 1937 to allow municipalities to seek protection, about 640 entities have filed. For Spiotto, bankruptcy is considered a measure of last resort because it carries the danger of increasing the city’s borrowing costs.

Bloomberg explained that in California “five of its 39 Chapter 9 petitions were made by cities or counties: Orange County in 1994, and the cities of Desert Hot Springs in 2001, Vallejo in 2008, and Stockton and Mammoth Lakes in the past month.”

San Bernardino, Stockton and Mammoth Lakes are not the only cases of city bankruptcy around the nation. Cities like   Harrisburg, Pennsylvania, Jefferson County, Alabama, and Central Falls, Rhode Island are on the same situation. For these cities bankruptcy is a great problem. The jobs in the public sector are threatened so a lot of people could loose their jobs, and also some vital services like the police could loose economic support and employees and would  not be able to fulfill their jobs as they did in the past.

The difference between a company and a city bankruptcy is that companies in this situation have the option to break up, cities do not have this option because this would be unconstitutional, so they must find another solution.

The article Bankruptcy: The Reality for Some California Cities appeared first on The Toonari Post - News, Powered by the People!.

Los Angeles Dodgers LLC has reported that it has filed a motion to disallow all claims (the “Stow Claim”) asserted by Bryan Stow, Tyler Stow and Tabitha Stow against the Los Angeles Dodgers with the U.S. Bankruptcy Court in Delaware.

On March 31, 2011, which was Opening Day for the Dodgers’ 2011 baseball season, Stow was injured during an altercation that occurred after the baseball game ended in Parking Lot 2, situated on the outer ring of the parking lots surrounding Dodger Stadium.  Stow subsequently filed a complaint in California state court against more than a dozen defendants, including LAD and other debtors.

Stow’s lawsuit, as against the debtors, was automatically stayed under the U.S. Bankruptcy Code when the debtors filed for bankruptcy protection on June 27, 2011.  Stow filed the Stow claim with the bankruptcy court on July 11, 2011.  Also in July, the Los Angeles Police Department arrested two individuals, Marvin Norwood and Louis Sanchez, as suspects in the altercation with Stow.

These individuals also attended the Opening Day game and sat on the opposite side of the stadium from where Stow was seated. Neither individual is part of the Dodger organization.  Norwood and Sanchez are currently in criminal custody awaiting trial.

The Dodgers have moved that the Bankruptcy Court disallow the Stow claim in its entirety because, as a matter of law, Stow cannot prevail in his claims against the debtors.

The debtors’ motion makes clear, among other points:

• As a matter of law, Stow cannot prove any link between the additional security related steps that Stow contends the debtors should have taken and his injuries;
• Stow cannot show that anything about the security personal staffing on Opening Day caused his injuries and, furthermore, the security staffing at the game greatly exceeded all requirements ofCalifornia state law;
• The Dodgers had no knowledge of any inappropriate conduct by Stow’s assailants prior to the time that Stow sustained his injuries and, as a matter of law, are not liable for failure to anticipate criminal acts of third parties;
• The California Court of Appeals has recognized that allegedly inadequate lighting cannot support a finding that a property owner “caused” an attack by a third party on its premises.  Moreover, Stow cannot show that inadequate lighting caused his injuries and, in fact, the Stow complaint alleges that the altercation “took place over a prolonged period of time and drew the attention of various other patrons,” which if true demonstrates that the assailants were unconcerned with concealing themselves from others;
• Contrary to Stow’s lawyers’ contentions, there was no “half-off” beer promotion at Opening Day and, thus, could not have had anything to do with his injury;
• The Dodgers cannot be held liable for failing to escort Stow and his companions through the parking lot; and, furthermore, neither Stow, nor anyone else in his party, ever asked to be escorted or for any other assistance;
• The Dodgers are not liable for the presence of persons who might be gang members and, in any case, there is no evidence that Norwood or Sanchez are gang members, or that the Dodgers had any knowledge of gang membership or prior criminal conduct by either of Stow’s assailants.

In addition, the debtors’ motion makes clear that, based on the material facts that are not genuinely at issue, and, as a matter of law, no basis exists for Stow’s claim for punitive damages.  Accordingly, Los Angeles Dodgers have moved that the bankruptcy court should grant summary judgment disallowing all punitive damage claims against LAD.

Image Courtesy of   https://www.facebook.com/Dodgers

The article L.A. Dodgers File Motion to Forbid Stow Bankruptcy Court Claim appeared first on The Toonari Post - News, Powered by the People!.