Judge orders Detroit to withdraw bankruptcy filing - KYTX CBS 19 Tyler Longview News Weather Sports

Judge orders Detroit to withdraw bankruptcy filing

Posted: Updated:
  • CBS19.tv Web ExclusivesMore>>

  • Web Exclusive: Company cancels class to nix Southern accents, y'all, after complaints

    Web Exclusive: Company cancels class to nix Southern accents, y'all, after complaints

    Wednesday, July 30 2014 12:00 PM EDT2014-07-30 16:00:17 GMT
    We live in the South, so some of us may have a Southern accent, but would you consider saying "goodbye" to "howdy, y'all"?
    The Oak Ridge National Laboratory in Tennessee was going to offer a speech class for its workers next month to do just that, until it got canceled.
    More >>
    We live in the South, so some of us may have a Southern accent, but would you consider saying "goodbye" to "howdy, y'all"?
    The Oak Ridge National Laboratory in Tennessee was going to offer a speech class for its workers next month to do just that, until it got canceled.
    More >>
  • Web Exclusive: Ultra HD TVs

    Web Exclusive: Ultra HD TVs

    (CNN) -Some people just have to have the latest in television technology. The newest TVs on the market- ultra-high definition TVs- or UHD TVs. They have higher screen resolution than current high def screens, and are also known as "4-K" sets. "More >>
    (CNN) -Some people just have to have the latest in television technology. The newest TVs on the market- ultra-high definition TVs- or UHD TVs. They have higher screen resolution than current high def screens, and are also known as "4-K" sets. "More >>
  • Web Exclusive: A product to help keep sharks away on sale

    Web Exclusive: A product to help keep sharks away on sale

    Monday, July 28 2014 9:40 AM EDT2014-07-28 13:40:46 GMT
    If you're headed on a beach vacation, there's a product you may be interested in to help keep sharks away.  The device is called a Shark Shield.  It is now being sold in Florida.More >>
    If you're headed on a beach vacation, there's a product you may be interested in to help keep sharks away.  The device is called a Shark Shield.  It is now being sold in Florida.More >>

NEW YORK (CNNMoney) - A Michigan Circuit Court Judge ruled Friday that Detroit's bankruptcy filing is unconstitutional and ordered the case be withdrawn from federal bankruptcy court.

But Michigan Attorney General Bill Schuette said in a statement soon after the decision that he intended an immediate appeal to the Michigan Court of Appeals and would seek to block this latest order from taking effect while the appeal is heard.

The order came in response to motions by lawyers for retirees and pension funds for city workers, who argue the state constitution prohibits cutting pension and retirement benefits, as has been proposed in the bankruptcy case.

The order was from Ingham County Circuit Judge Rosemarie Aquilina, the county that includes the state capital of Lansing. Aquilina had been ready to issue an order Thursday that would have blocked the filing in federal bankruptcy court, but the hearing on the motion to do so started five minutes after the bankruptcy case was filed.

It's not clear if a state court judge legally can order a party in a federal case to drop that action.

"Obviously there are constitutional issues," said Michael Sweet, a bankruptcy attorney with the California law firm of Fox Rothschild and an expert in municipal bankruptcy cases. "Anyone who thought this case would be resolved quickly was sorely mistaken. There is too much at stake for too many people. Clearly the gloves are coming off."

Detroit became the largest municipal bankruptcy in U.S. history Thursday evening when emergency manager Kevyn Orr filed the case in federal bankruptcy court in Detroit. Orr had been appointed to oversee Detroit's finances by Gov. Rick Snyder. Snyder authorized the bankruptcy filing. Aquilina's order says that Snyder must now order Orr to withdrawal the case.

Powered by WorldNow

CBS19, MYTX & KCEB
2211 ESE Loop 323
Tyler, TX 75701
Phone (903) 581-2211
Fax (903) 581-5769

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KYTX. All Rights Reserved. Users of this site agree to the Terms of Service, Privacy Notice/Your California Privacy Rights, and Ad Choices.