Federal Judge Clears Way for Detroit Bankruptcy Case

Detroit’s bankruptcy case will continue without legal challenges. The decision by Judge Steven Rhodes of the U.S. Bankruptcy Court halts all litigation against the city, its emergency manager and Gov. Rick Snyder.

Protests by retired city employees over potential pension cuts and a potential challenge to the city’s Chapter 9 filings will be addressed in upcoming hearings. Judge Rhodes said the Federal Bankruptcy Court has “exclusive jurisdiction” over this case.

Protesters gathered around the downtown Detroit courthouse while the Judge reviewed arguments on whether or not Mr. Snyder had crossed his authoritative boundaries when forcing the city into the largest municipal bankruptcy case in American History.

[NYTimes]

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Featured image courtesy of [Ian Freimuth via Flickr]

Davis Truslow

Davis Truslow is a founding member of Law Street Media and a graduate of The George Washington University. Contact Davis at staff@LawStreetMedia.com.