Judge Delays Hearing on Detroit Bankruptcy

Set to determine whether it violates the state's constitution

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.

Comments

[ant1sthenes]

I don't know how to feel about this. On the one, the pubsec unionistas showed that no institution is too healthy for them to destroy, and they should reap what they have sown. But on the other hand, killing the municipal bonds market would throw more union-owned cities onto the scrap heap of history, and it will be hard for the President to bail them out while he's being perp-walked out of the White House.