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Detroit bankruptcy judge unconstitutional

detroit bankruptcy judge unconstitutional

Jul 19,  · Detroit%27s % billion bankruptcy%2C filed Thursday%2C is largest city filing in U.S. history; Emergency manager filed the petition 5 minutes before . Jul 19,  · Judge calls Detroit bankruptcy unconstitutional, orders filing withdrawn Updated Apr 03, ; Posted Jul 19, By Khalil AlHajal | [email protected] One little snag emerged today regarding Detroit's bankruptcy filing: A county judge declared the move unconstitutional and ordered the bankruptcy withdrawn, reports the Detroit Free Press.

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Judge rules bankruptcy filing unconstitutional

Later today, we expect to file additional motions seeking emergency consideration. Aquilina, a Democrat appointee, also ordered that a copy of her order be sent all the way to the White House , saying that President Obama "bailed out Detroit" and might want to take a closer look, reports the Free Press.

Obama said Thursday that he is "monitoring the situation" but that the responsibility for Detroit's finances lies with municipal and state leadership. Although Michigan's constitution protects public employee pensions from being reduced, federal bankruptcy law does not necessarily offer that same protections to pensioners.

It's uncertain how Michigan's constitutional guarantee of retiree pensions would fare before a bankruptcy judge. In the California city of Stockton, which was approved to go through bankruptcy in April, bondholders objected to pre-bankruptcy talks that proposed preserving funding to Calpers, the state's public employee retirement system.

Judge Christopher Klein's opinion approving Stockton's bankruptcy petition noted that bondholders could allege "unfair discrimination" if the pension system's payments weren't cut.

Some have suggested that the fight over pension obligations in Stockton could go all the way to the Supreme Court. Until Detroit, Stockton, with a population of ,, was the largest U.

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Toggle navigation. Previous: 'Trayvon Martin could've been me,' says President Obama Next: Scalia says judicial activism can distort democracy. Give us feedback, share a story tip or update, or report an error. Included in the bankruptcy filing is a four-page letter signed by Michigan Gov. Snyder and dated July 18 in which he wrote that a "vital point" made by Orr was that, "Detroit tax rates are at their current legal limits, and that even if the city was legally able to raise taxes, its residents cannot afford to pay additional taxes.

Jefferson County, Ala. In a statement, Detroit Mayor Dave Bing said, "Today's bankruptcy filing is an unfortunate event in our city's history. While it has never been my desire that the city file for bankruptcy, I understand why Kevyn found it necessary to do so. Snyder and [Kevyn] Orr are not above the law and cannot ignore the Michigan constitution. Shows Good Morning America. World News Tonight. This Week. The View. What Would You Do? Sections U.

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