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In reply to the discussion: So Detroit- what went wrong? [View all]FarCenter
(19,429 posts)52. The case could proceed with the creditors represented.
And the Federal judge can hold the state judge in contempt anyway.
Legal battle brews over Detroit bankruptcy filing
http://www.usatoday.com/story/news/nation/2013/07/19/detroit-bankruptcy-unconstitutional/2569481/
DETROIT -- While Detroit emergency manager Kevyn Orr on Friday was offering short-term reassurances to thousands of city pensioners whose benefits are in jeopardy, his lawyers were waging a whirlwind legal battle over the constitutionality of the bankruptcy filing that could land both sides before a federal judge early next week.
On Friday, Michigan Attorney General Bill Schuette said he will appeal an Ingham County judge's ruling that Detroit's bankruptcy filing must be withdrawn because it violates the Michigan Constitution and state law.
However, the order from Ingham County Circuit Judge Rosemarie Aquilina ultimately could have little effect because the bankruptcy case already was filed in federal court, and federal law generally trumps state law. The city filed a motion requesting to include the state as a party in the bankruptcy code's provisions that put on hold all lawsuits against the city, a clear attempt to fight the Ingham County ruling by preventing the state from being sued in similar fashion. The city is asking U.S. District Judge Steven Rhodes to hold a hearing on Tuesday, or earlier, to decide this and other matters.
On Friday, Michigan Attorney General Bill Schuette said he will appeal an Ingham County judge's ruling that Detroit's bankruptcy filing must be withdrawn because it violates the Michigan Constitution and state law.
However, the order from Ingham County Circuit Judge Rosemarie Aquilina ultimately could have little effect because the bankruptcy case already was filed in federal court, and federal law generally trumps state law. The city filed a motion requesting to include the state as a party in the bankruptcy code's provisions that put on hold all lawsuits against the city, a clear attempt to fight the Ingham County ruling by preventing the state from being sued in similar fashion. The city is asking U.S. District Judge Steven Rhodes to hold a hearing on Tuesday, or earlier, to decide this and other matters.
University of Michigan law professor John Pottow said the issue could travel up the court system, all the way to the Michigan Supreme Court. Or it could be answered decisively and quickly in bankruptcy court, he said.
"There's nothing that precludes a federal judge from adjudicating the constitutionality of the Michigan statute," Pottow said. "The bankruptcy judge can interpret Michigan law."
"There's nothing that precludes a federal judge from adjudicating the constitutionality of the Michigan statute," Pottow said. "The bankruptcy judge can interpret Michigan law."
What we know for sure is that a lot of lawyers will spend a great number of billable hours on this case in the next years.
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Kicking the can down the roadism. Pensions, TBTF bank loans, Wall Street fuckery.
Safetykitten
Jul 2013
#2
Quite simply, Detroit and much of what was industrialized Michigan, is a testament...
MrScorpio
Jul 2013
#5
Two full generations from now, the US as it is today and the wreckage of what it once was
Javaman
Jul 2013
#23
The Bethlehem Steel plant at Sparrows Point did not have to be closed. It was closed because
byeya
Jul 2013
#40
The state of Michigan (Governor Snyder) stripped Detroit of all its independent authority and
Liberal_Stalwart71
Jul 2013
#8
Unionized Detroit abandoned by Big 3 for non-unionized locales in the South.
reformist2
Jul 2013
#10
Governor Rick Snyder and Dennis Archer and Kwame Kilpatrick and years of
mstinamotorcity2
Jul 2013
#12
Factories moving to suburbs, school quality, corruption, corruption, corruption
JPZenger
Jul 2013
#17
I think there are a lot of correct answers in this thread that need to be combined.
last1standing
Jul 2013
#18
The state can request that the filing be withdrawn, but it is up to the Federal court to dismiss it.
FarCenter
Jul 2013
#42
and if the state can't pursue the case because it is declared unconstitutional
Motown_Johnny
Jul 2013
#50
Years of nation-wide support by politicians for let's-send-manufacturing-jobs-to-foreign-countries
AnotherMcIntosh
Jul 2013
#51