The California city of Stockton has cut its budget and services to the bone and has no choice but to become the most populous U.S. city to go bankrupt, its lawyers said Monday. The state of California and its City Council passed a special budget on Tuesday, paving the way for the city to become the largest "American city" to file for bankruptcy since New York City in 2009.
Mark Levinson, a city attorney, argued in his opening argument in court that it had no choice but to file for bankruptcy, according to a transcript of his testimony. The city is trying to get all creditors on board, he said, but denied pushing for a Cram-down bankruptcy plan. Most importantly, California bankruptcy lawyers tell us at the first call which chapter of bankruptcy is best, "Cochran warned, warning that a last-minute settlement is unlikely. A spokesman for Stockton's city attorney John Cochran Jr. declined to comment Tuesday.
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In the 1960s, Belli was a leading member of the California Plaintiffs "Bar Association, which helped found the California Trial Lawyers Association, which was renamed Consumer Attorneys in California in the mid-1990s. In 2009, he was named American Lawyer by the American Bar Association and the National Association of Consumer Lawyers (NACL).
In the 1920s, the family moved to Stockton, California, where Belli attended Stockton High School. In the 1930s, the family moved back to San Francisco, then to Los Angeles and finally, in 1920, to his family's hometown, San Jose. SPOA sued Stocktons after it declared a budget emergency in 2010 and then changed its members "benefits and rights. Finally, a bankruptcy court rejected an order modifying the automatic stay so that retirees could appeal in a forum that supposedly had the power to provide benefits such as health care, pensions, pension benefits, health insurance, and other benefits. This restriction was fundamental to his decision and was contrary to the court's power to control the affairs of municipal debtors.