A town in California is broke. The city had been warned several times over the last few years that it did not have enough money to pay out future...

A town in California is broke. The city had been warned several times over the last few years that it did not have enough money to pay out future pensioners. There is a law that says the town must pay promised benefits. The town says that it cannot, no money. You be the judge. Who wins here? The town or the pensioners? Why did they win and what did you cite for the reasons?