Judge: Detroit bankruptcy move is illegal
Fri, 19 Jul 2013 18:51:59 GMT —
A judge is ordering Gov. Rick Snyder to withdraw Detroit's bankruptcy petition, saying the state is illegally trampling the rights of pensioners.
But the practical impact of the decision is unclear. 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.