The Herald Bulletin

Afternoon Update

Nation & World

July 24, 2013

Judge freezes challenges to Detroit bankruptcy

DETROIT — A federal judge on Wednesday swept aside lawsuits challenging Detroit's bankruptcy, settling the first major dispute in the scramble to get a leg up just days after the largest filing by a local government in U.S. history.

After two hours of arguments, U.S. Bankruptcy Judge Steven Rhodes made clear he's in charge. He granted Detroit's request to put a permanent freeze on three lawsuits filed in Ingham County, including another judge's extraordinary decision that Gov. Rick Snyder trampled the Michigan Constitution and acted illegally in approving the Chapter 9 filing.

That ruling and others had threatened to derail the bankruptcy.

Questions about Detroit's eligibility to turn itself around through bankruptcy "are within this court's exclusive jurisdiction," Rhodes said.

He said nothing in federal law or the U.S. Constitution gives a state court a dual role. It was a victory for Detroit, which had warned that it would be "irreparably harmed" if it had to deal with lawsuits in state courts while trying to restructure $18 billion in debt with thousands of creditors.

"Widespread litigation ... can only confuse the parties, confuse the case and create serious barriers," attorney Heather Lennox told the judge.

Creditors "will have their day in court" — bankruptcy court, she said.

The courtroom was jammed with lawyers representing creditors as well as rank-and-file city employees and retirees eager to know the outcome. Some wore T-shirts that said, "Detroit vs. Everybody."

Detroit emergency manager Kevyn Orr, who recommended bankruptcy, sat in the front row for part of the hearing. Outside the courthouse, protesters held a banner with a message for Wall Street: "Cancel Detroit's debt. The banks owe us."

Detroit has about 21,000 retirees — police, firefighters, City Hall clerks, trash haulers, bus drivers — who are owed money and fear their income is at risk in a bankruptcy. Orr has said the city has underfunded obligations of about $3.5 billion for pensions and $5.7 billion for retiree health coverage.

Text Only
Nation & World
  • Oklahoma police chief resigns over racial slur repost to Facebook

    A repost on his personal Facebook page of a racially-charged comment by the original poster of a comedy video has forced the police chief of an Oklahoma city to resign his office.

    August 21, 2014

  • US existing home sales rise for 4th straight month

     Sales of existing U.S. homes rose for the fourth straight month in July to their highest level in nearly a year, the latest sign that the housing recovery is picking up after stumbling at the start of the year.

    August 21, 2014

  • Aid group: US doctor who had Ebola has recovered

    At least one of the two American aid workers who were infected with the deadly Ebola virus in Africa has recovered and was to be discharged Thursday from an Atlanta hospital, a spokeswoman for the aid group he was working for said.

    August 21, 2014

  • Holder bringing personal perspective to Ferguson

     Eric Holder talks about the nation's civil rights struggles in a way no previous U.S. attorney general could — by telling his own family story.

    August 20, 2014

  • Senate control could rest with well-funded women

    Control of the Senate could lie in the fortunes of female candidates and the deep-pocketed donors, like former New York Mayor Michael Bloomberg, who are sending piles of cash their way.

    August 20, 2014

  • Iraq forces retake Mosul Dam; militants deny claim

    Boosted by two days of U.S. airstrikes, Iraqi and Kurdish forces on Monday wrested back control of the country's largest dam from Islamic militants, a military spokesman in Baghdad said as fighting was reported to be underway for the rest of the strategic complex.

    August 18, 2014

  • US stocks open higher; Family Dollar jumps

     U.S. stocks are opening higher, following gains in Europe.

    August 18, 2014

  • Federal autopsy ordered in Missouri teen's death

    Attorney General Eric Holder on Sunday ordered a federal medical examiner to perform another autopsy on a black Missouri teenager whose fatal shooting by a white police officer has spurred a week of rancorous and sometimes-violent protests in suburban St. Louis.

    August 17, 2014

  • news_missingamish.jpg Official: Amish girls sexually abused in abduction

    Two young Amish sisters were sexually abused after their abduction from a roadside farm stand in northern New York, a prosecutor said Saturday.

    August 17, 2014 1 Photo

  • Ukraine [Duplicate] Ukraine says troops entered rebel-held city

    Ukraine's government said Sunday that separatists shot down a Ukrainian fighter plane after army troops entered deep inside a rebel-controlled city in the east in what could prove a breakthrough development in the four-month long conflict.

    August 17, 2014 1 Photo

More Resources from The Herald Bulletin
AP Video
Japan Landslide Rescuers Struggle in Heavy Rain Raw: Severe Floods, Fire Wrecks Indiana Homes Endangered Red Wolves Face Uncertain Future Raw: Russian Aid Convoy Arrives in Ukraine Hamm Talks Emmy Chances Okla. Policeman Accused of Sex Assaults on Duty Raw: Egypt Bus Crash Kills at Least 33 Two Bodies Found in Adjacent Yards Dominican Republic Bans Miley Cyrus Concert Raw: Israeli Air Strike in Gaza Raw: Rescue Efforts Suspended at Japan Landslide Raw: Bodies of MH17 Victims Arrive in Malaysia Raw: Smaller Marches in Ferguson Attorney: Utah Eatery Had Other Chemical Burn Farm Resurgence Grows With Younger Crowd Microbrewery Chooses Special Can for Its Beer Ky. Firefighters Hurt in Ice Bucket Challenge Federal Investigation Will Look at Use of Force Community Deals With Michael Brown Aftermath US: We Do Not Pay Ransom to Terrorists
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium