Tuesday, June 9, 2009

Supreme Court Vacates Stay in Chrysler Case

The Supreme Court vacated the stay entered by Justice Ginsburg allowing the Chrysler sale to move forward. Apparently, the sale could be complete as early as Wednesday morning. A copy of the order can be found here. Notably, the Court specifically limited its ruling by stating "Our assessment of the stay factors here is based on the record and proceedings in this case alone."

The Court stated:

A denial of a stay is not a decision on the merits of the underlying legal issues. In determining whether to grant a stay, we consider instead whether the applicant has demonstrated "(1) a reasonable probability that four Justices will consider the issue sufficiently meritorious to grant certiorari or to note probable jurisdiction; (2) a fair prospect that a majority of the Court will conclude that the decision below was erroneous; and (3) a likelihood that irreparable harm will result from the denial of a stay." Conkright v. Fommert, 556 U. S. ___, ___ (2009) (slip op., at 1–2) (GINSBURG, J., in chambers) (internal quotation marks and alterations omitted). In addition, "in a close case it may be appropriate to balance the equities," to assess the relative harms to the parties, "as well as the interests of the public at large." Id., at ___ (slip op., at 2)(internal quotation marks omitted)


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