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Judge halts Detroit bankruptcy cuz it disses Obama

Discussion in 'Politics, Elections & Legislation' started by Brian in Oregon, Jul 19, 2013.

  1. Brian in Oregon

    Brian in Oregon Well-Known Member

    Jan 29, 1998
    Deplorable Bitter Clinger in Liberal La La Land
    You just can't make this crap up. The Detroit bankruptcy does not honor Obama.

    July 19, 2013 at 7:03 pm
    Ingham County judge rules Detroit bankruptcy be withdrawn; Schuette appeals

    Lansing — Ruling the governor and Detroit’s emergency manager violated the state constitution, an Ingham County Circuit judge ordered Friday that Detroit’s federal bankruptcy filing be withdrawn.

    “It’s absolutely needed,” said Judge Rosemary Aquilina, observing she hopes Gov. Rick Snyder “reads certain sections of the (Michigan) constitution and reconsiders his actions.”

    The judge said state law guards against retirement benefits being “diminished,” but there will be no such protection in federal bankruptcy court.

    State-level legal skirmishing over the Chapter 9 bankruptcy effort by Snyder and Detroit Emergency Manager Kevyn Orr now will quickly move to the Michigan Court of Appeals.

    Attorney General Bill Schuette, on behalf of Snyder, filed an application for Appeals Court consideration of Aquilina’s order an hour after it was issued.

    Schuette asked the Appeals Court to put a hold on present and future lower-court proceedings and was planning to seek emergency consideration to expedite the process, said spokeswoman Joy Yearout.

    Meanwhile, U.S. Rep. John Conyers Jr., D-Detroit, said Friday that Aquilina’s ruling justifies the need for congressional hearings on whether Detroit is misusing the bankruptcy process to slash retiree pensions and health insurance coverage.

    While experts say federal proceedings take precedence, state-level legal maneuvering could delay the process. Pension board attorneys said their pleadings could wind up in federal court, too.

    Snyder authorized Thursday’s bankruptcy filing in U.S. District Court in Detroit by Orr and his legal team. That was to set in motion a process in which the court determines whether Detroit qualifies for bankruptcy.

    The filing involved a bit of courtroom drama.

    With rumors it was imminent Thursday afternoon, attorneys representing the pension boards hurried into Aquilina’s court in Lansing to ask for a temporary restraining order.

    But Snyder and Orr beat them by a few minutes. Aquilina, informed by phone, allowed the pension board lawyers to revise their restraining order request, then granted it.

    Prior to her ruling on Friday, the judge criticized the Snyder administration and Schuette’s office over their hasty move.

    “It’s cheating, sir, and it’s cheating good people who work,” the judge told assistant state Attorney General Brian Devlin. “It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”

    Southfield attorney John Canzano, representing several pension plan members, said bankruptcies of cities such as Stockton, Calif., have been handled in a way that didn’t compromise pensions.

    From The Detroit News: http://www.detroitnews.com/article/20130719/METRO01/307190099#ixzz2ZYEYh4Ti
  2. Avatar

    Avatar TS Member

    Apr 18, 2013
    Politically and morally, it's hard to let cities declare bankruptcy and screw their pensioners. But, that's allowed to happen with corporations, and nobody seems to care, there...

    Any way you look at it, though, it's a shame how far Detroit has fallen.
  3. W.R.Buchanan

    W.R.Buchanan Member

    Dec 19, 2009
    Ojai CA
    I was born there in 1949 we left in 1954, I haven't been back.

    My dad saw it coming back then and moved us out!

  4. newbbs

    newbbs Member

    May 22, 2007
    Avatar, you really should research and study how pensions are funded and guaranteed.

    There is a great deal of difference between public, corporate and union pensions on how they are funded and the percentage of funds that are liquid.