Facebook LinkedIn Twitter Youtube

Judge halts lawsuits seeking to block Detroit bankruptcy (Detroit Officially Bankrupt Now)

A federal bankruptcy judge on Wednesday suspended pending lawsuits in state courts that are challenging Detroit’s bankruptcy filing.

U.S. Bankruptcy Judge Steven Rhodes said there is nothing in the 10th Amendment, which guides state vs. federal jurisdiction, that bars federal jurisdiction in this case. He said his court will be the exclusive venue for any legal action regarding the bankruptcy.

Detroit’s Emergency Manager Kevyn Orr—a bankruptcy expert appointed by Gov. Rick Snyder earlier this year to oversee Detroit’s finances—has said the federal bankruptcy filing is necessary to get the city out from under some $18 billion in liabilities.

But the city’s employee unions argued the bankruptcy is an end-run around the state constitution, which protects their pension benefits. The unions backed a series of lawsuits filed in Michigan courts to block the bankruptcy. Last week, Ingham County Circuit Judge Rosemarie Aquilina ruled the bankruptcy filing unconstitutional, but a state appeals court put her ruling on hold, and Orr argued the federal court should make that stay indefinite.

The emergency manager said bankruptcy is a federal matter. A bankruptcy filing normally puts all other litigation on hold, but Orr’s office asked the judge to extend that automatic stay to cover him and state officials, including the governor. Orr’s attorneys acknowledged the request was unusual, but said “recent events”—the lawsuits in state court—made it necessary.

Read More…

Share This!
Weibo ButtonTencent ButtonQzone ButtonReddit ButtonStumbleUpon ButtonDigg ButtonOrkut ButtonBookmarks ButtonBlogger ButtonDelicious Button
Translate
ArabicChinese (Traditional)DanishDutchEnglishFilipinoFrenchGermanGreekHebrewHindiItalianJapaneseKoreanNorwegianPolishPortugueseRussianSpanishSwedish
Shop And Support Us!
Join The Fight!
Defend Marriage and Stop President Obama's Unconstitutional Power Grab


Join The NRA and Get $10 off a Yearly Membership!


Thousands of Deadly Islamic Terror Attacks Since 9/11

Twitter Feed
Welcome , today is Tuesday, July 30, 2013