California Public Employees' Retirement System v. City of San Bernardino

ORDER RE APPELLANT’S MOTION FOR LEAVE TO APPEAL AND MOTION REQUESTING CERTIFICATION FOR DIRECT APPEAL TO NINTH CIRCUIT

This matter is before the Court on Appellant California Public Employees’ Retirement -System’s (“CalPERS”) motion for leave to appeal and motion requesting 'certification for direct appeal to the Unites States Court of Appeals for the Ninth Circuit. [Doc. ## 3, 6.] The Court held a *1218 hearing on the motions on December 13, 2013.

Having duly considered the respective positions of the parties, the Court now renders its decision. For the reasons set forth below, the motion for leave to appeal is GRANTED, and the motion requesting certification for direct appeal to the Ninth Circuit is DENIED as moot.

I.

PROCEDURAL HISTORY

On August 1, 2012, the City of San Bernardino (“the City”) filed its petition for bankruptcy protection under chapter 9 of the Bankruptcy Code in the Central District of California. CalPERS filed objections to the City’s eligibility for relief on two grounds: (1) the City did not “desire to effect a plan to adjust debts” pursuant to 11 U.S.C. § 109 (c)(4); and (2) the City did not file the petition in good faith as required under 11 U.S.C.…