June 08, 2009
The Court Stays Chrysler
Posted by David Zaring

As the Times says, Justice Ginsburg, who handles emergency matters arising from the United States Appeals Court for the Second Circuit, in a one-sentence order, said the orders of the bankruptcy judge allowing the sale “are stayed pending further order of the undersigned or of the court.”

Since the Court never hears bankruptcy matters, ever, and since Ginsburg is hardly known as a business-oriented judge, I am tempted to assume that the Takings Clause question is one that Ginsburg finds intriguing (it also could be that she isn't buying the waaaaay-too-short standing analysis).  But remember, it is the Court, and so she may have a few clerks from the D.C. Circuit who have never seen a bankruptcy, let alone a 50 claim bankruptcy appeal from a very short opinion, who can't quite handle all the paper, and who are used to agency records which look comprehensive, rather than bankruptcy court orders, which do not.

Or it could be that Ginsburg's friend Scalia told her that there could be five votes to undo the deal.  If so, that will have the con law professors crying "Lochner!"

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