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|Current Court Information:|
|United States bankruptcy court, Eastern District of California|
Michael McManus is a Federal Bankruptcy Court Judge for the United States bankruptcy court, Eastern District of California. McManus was appointed to the bankruptcy bench on January 11, 1994, and was reappointed to a second term on January 11, 2008.
Judge McManus served as the Eastern District’s chief bankruptcy judge from November 3, 2000 through September 30, 2008.
City may reject pre-existing collective bargaining agreement
| United States bankruptcy court, Eastern District of California|
*[ In re City of Vallejo, California] 08-26813-A-9
|McManus, as the National Law Journal reported March 2009, "held the city of Vallejo, Calif., has the authority to void its existing union contracts in its effort to reorganize." This set precedence in California as it holds that public workers do not get the same protections Congress gave union workers at private companies.
McManus held March 13 that when Congress enacted 11 U.S.C. sec. 1113 to limit companies from rejection of union contracts it limited it to Chapter 11 bankruptcies. Because it failed to extend the limits to Chapter 9, covering municipal bankruptcy, McManus said cities have broader latitude to break existing union pacts.The city of Vallejo declared bankruptcy in 2008, blaming spiraling payroll costs and declining revenue. Within weeks the city asked McManus in Sacramento to void all four contracts with 400 police, firefighters, electricians, maintenance workers, secretaries, clerks and other city workers.