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Appeals court puts brakes on state judge’s order derailing Detroit bankruptcy

Posted Jul 23, 2013 3:30 PM CDT
By Martha Neil

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Injunctive relief granted Friday by a Michigan judge who ordered the city of Detroit to withdraw its Chapter 9 bankruptcy filing was stayed Tuesday by the state court of appeals.

It stayed all three orders issued Friday by Ingham County Circuit Judge Rosemarie Aquilina while the appellate court decides whether to grant an interlocutory appeal requested by the state attorney general, the MLive.com reports. At issue in the litigation is whether the bankruptcy filing infringes on a state constitutional guarantee of retirement benefits for public employees.

Aquilina had told the state governor and treasurer not to work on the federal bankruptcy case, but they are now free to do so.

See also:

ABAJournal.com: "Detroit files for bankruptcy, the biggest US city ever to do so"

ABAJournal.com: "Detroit bankruptcy brings business to multiple law firms"

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