By a general consensus, most gearheads feel that the Chrysler takeover by Fiat will end in some sort of disaster. The question is only if it will be long-term disaster, short-term disaster, or the latest option, an explosion on the launch pad.

Several pension funds in Indiana have filed court paperwork that if recognized would delay the merger/sale/government takeover of Chrysler to the point that it would not longer be feasible and the company would be liquidated and essentially dissolve in front of our very eyes. The documents have been filed because those pension funds are not being paid their outstanding debts while other debtors with less debt and less tenure are being paid first.

Interestingly enough, the papers filed by the funds are asking the court to check the constitutionality of what is happening and state their concern that the government does not have the authority to do what they are doing.

This has much larger implications that Chrysler. If the case is taken up and makes its way up the food chain we could literally be seeing a scenario with the Supreme Court ruling on this. If that happened, Chrysler would be dead and buried, but the legal precedent would be huge.

Click here to see the whole Reuters story and join us in counting down until Fiat jumps ship.