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IN RE CITY OF STOCKTON, CAL.

Bankruptcy No. 12-32118-C-9. Adversary No. 12-2302.

478 B.R. 8 (2012)

In re CITY OF STOCKTON, CALIFORNIA, Debtor. Association of Retired Employees of the City of Stockton, a Nonprofit California Corporation, Shelley Green, Patricia Hernandez, Reed Hogan, Glenn E. Matthews, Patrick L. Samsell, Alfred J. Siebel, Brenda Jo Tubbs, Teri Williams, on Behalf of Themselves and Others Similarly Situated, Plaintiffs, v. City of Stockton, California, Defendant.

United States Bankruptcy Court, E.D. California.

August 6, 2012.

Attorney(s) appearing for the Case

G. Scott Emblidge (argued), Rachel J. Sater, Kathryn J. Zoglin, Moscone Emblidge & Sater LLP, San Francisco, CA, for Plaintiffs.

Marc A. Levinson (argued), Norman C. Hile, John W. Killeen, Orrick, Herrington & Sutcliffe LLP, Sacramento, CA, for Defendant.

OPINION

CHRISTOPHER M. KLEIN, Bankruptcy Judge.

The retired employees of the City of Stockton want this court to order the City to keep paying for their health benefits during this chapter 9 case. The difficulty is that 11 U.S.C. § 904 forbids the court from using any of its powers to "interfere with" property or revenues of a chapter 9 debtor. Accordingly, although the City's unilateral interim reduction of retiree health benefit payments may lead...

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