On the quality of legislation

This judge doesn\’t sound very happy at the ruling he\’s just made:

Mr Justice Briggs said he regretted having to make the ruling, which he blamed on \”a legislative mess\”. \”Parliament might wish to consider a suitable amendment,\” he added.

\”The conferring of super-priority as expenses on the financial liabilities arising from the FSD regime is both potentially unfair to the target\’s creditors and inconsistent with a decision taken in 2004 not to elevate employees\’ pensions claims above the claims of those creditors.\”

For he\’s just put pension funds at the top of the queue (just behind secured creditors) in bankruptcy proceedings.

Now, you might design a bankrupcty system which did this: there\’s nothing particularly wrong or right about having pension funds at any particular point in the unsecured creditors queue.

But to change that ordering by court order after everyone\’s been working for decades/a century under the current rules is a disaster. There are hundreds of billions of loans, commercial paper, bonds and so on which have now had their terms retrospectively changed.

Note that the judge is actively suggesting that Parliament like to clear this little mess up. For the matter has occured because Parliament has, to put it politely, managed to fuck up in their legislation.

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