Arbitrators Not Prevented from Awarding Compensation Exceeding That Allowed under City’s Recovery Plan

For nearly 20 years, the City of Scranton, Pennsylvania has maintained the status of a “distressed municipality” under the Pennsylvania Municipalities Financial Recovery Act. Under the Act, the City’s financial affairs have been administered under various recovery plans with the assistance of a plan coordinator appointed by the Pennsylvania Department of Community Affairs. The City’s 2002 recovery plan imposed substantial cost containment measures addressing the City’s deficit and debt,…

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