Bankrupt Calif. City Can Reject Union Contract

Law360, New York (June 16, 2010, 4:27 PM EDT) -- A federal judge has ruled that the city of Vallejo, Calif., which is in Chapter 9 bankruptcy proceedings, can reject its collective bargaining agreement with the International Brotherhood of Electrical Workers, upholding a ruling by a bankruptcy judge.

Judge John A. Mendez of the U.S. District Court for the Eastern District of California ruled Monday that the bankruptcy court hadn't made a clear error of law in finding that the CBA would be burdensome for the city as it tries to meet its Chapter 9 solvency...
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