LOS ANGELES — U.S. Bankruptcy Judge Meredith Jury on Friday rejected the California Public Employees’ Retirement System’s second request that she certify a direct appeal to the U.S. Ninth Circuit Court of Appeals of San Bernardino’s eligibility to be in bankruptcy.
Jury denied the motion without prejudice saying the eligibility orders are interlocutory and CalPERS must first obtain leave from the District Court, before the interlocutory, or non-final matter, qualifies for a direct appeal to Ninth Circuit court.
In her ruling, Jury called the request, “duplicative and not an efficient use of judicial resources.”
If Jury had granted certification, CalPERS also had proposed to file a motion for leave in the Ninth Circuit, she said in her ruling.
“This duplication is inefficient and possibly may lead to inconsistent results,” Jury said. “The better procedure is to allow the district court to rule on the motion for leave first. If that is granted, CalPERS may request the District Court certify the direct appeal.”
Jury granted San Bernardino eligibility to be in Chapter 9 bankruptcy on Aug. 28.
In the CalPERS appeal, the pension fund’s attorneys argue that the city did not file in good faith or with any plan as to how it would exit bankruptcy.
The decision comes just days before the city and its creditors are due to fly to Reno, Nev. for mediation before U.S. Bankruptcy Judge Gregg Zive on Nov. 25.
The city filed a confidential term sheet laying the groundwork for the mediation on Oct. 15.
