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Judge Stops Lawsuits Against Detroit Bankruptcy

A federal judge has put a stop to lawsuits threatening Detroit’s bankruptcy and declared that he will handle any challenges.

Detroit, Michigan
Detroit, Michigan (Bill Pugliano/Getty Images)

The decision Wednesday after two hours of arguments is a victory for Detroit. A county judge last week said Gov. Rick Snyder ignored the Michigan Constitution and acted illegally in approving the Chapter 9 filing, the largest ever U.S. municipal bankruptcy.

Retirees sued, claiming their pensions are protected by the constitution and are at risk in a bankruptcy.

U.S. Bankruptcy Judge Steven Rhodes suspended any pending lawsuits and barred new ones. He says his court will be the exclusive venue for any legal action regarding the bankruptcy.

 

(Copyright 2013 by The Associated Press. All Rights Reserved.)

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