The Herald Bulletin

Morning Update

Nation & World

July 19, 2013

Michigan judge: Detroit bankruptcy move is illegal

DETROIT — A judge is ordering Michigan Gov. Rick Snyder to withdraw Detroit's bankruptcy petition, saying the state is illegally trampling the rights of pensioners.

However, the decision is unlikely to have any effect on the bankruptcy. That's because once a bankruptcy filing is made, it generally trumps other litigation in state courts.

Ingham County Judge Rosemarie Aquilina's decision Friday came in a lawsuit filed by Detroit pensioners. The judge had planned an emergency hearing Thursday, but Detroit then filed for bankruptcy protection.

The judge says plaintiffs in the case were "blindsided."

The attorney general's office says it will take Aquilina's order to the state appeals court.

 

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