A hearing on whether Detroit's bankruptcy filing violates the state's constitution rules against tampering with pension benefits was adjourned to July 29.
Despite the state's desire to move the case to federal court, Judge Rosemarie Aquilina of Ingham County Circuit Court said Monday that she believes the case should be heard in state court.
"This is a very important issue," she said. "I understand that there may be this question of moving it to federal court. … But these are state issues. We're dealing with the state constitution and an emergency manager who is a product of the state legislation." The city's emergency manager, Kevyn Orr, filed for Chapter 9 bankruptcy in federal court Thursday, and Detroit became the largest city government ever to declare bankruptcy.