Saturday, July 20, 2013

 

Judge denies Detroit bankruptcy; appeal filed

A state judge has ruled the Detroit bankruptcy petition violates the state constitution. Michigan's attorney general has appealed the decision.





Detroit bankruptcy: A vacant, boarded up house in the once thriving Brush Park neighbourhood of Detroit.
A judge has denied Detroit's request for bankruptcy.
DETROIT — Michigan Attorney General Bill Schuette on Friday appealed a state judge's declaratory judgment that the bankruptcy petition Detroit's emergency manager filed in federal court Thursday should be withdrawn.


The appeal of Ingham County Circuit Court Judge Rosemarie Aquilina's Friday order was made in the Michigan Court of Appeals on behalf of Governor Rick Snyder, according to a statement from Schuette's office. Additional motions seeking emergency consideration were expected to be filed later on Friday, the statement added.

Earlier Friday, Aquilina said the 2012 Michigan law that allowed Gov. Rick Snyder to approve the city's bankruptcy filing, the largest municipal bankruptcy filing ever in the United States, violates the Michigan Constitution.

The declaratory judgment came in lawsuits filed this month by Detroit pension funds, retirees and workers, which sought to prevent a bankruptcy filing that would ultimately impair retirement benefits in violation of constitutional protections for those benefits.

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