Detroit's Bankruptcy Filing Ruled Unconstitutional

Law360, New York (July 19, 2013, 9:58 PM EDT) -- A Michigan state judge on Friday declared the governor’s decision allowing the long-suffering city of Detroit to enter Chapter 9 bankruptcy unconstitutional, saying it threatens to harm retirees’ accrued pension benefits.

Ingham County Circuit Judge Rosemarie E. Aquilina’s order came just one day after Detroit emergency manager Kevyn Orr received authorization from Gov. Rick Snyder to submit the bankruptcy filing. Judge Aquilina said Snyder is prohibited by the Michigan Constitution from authorizing Orr to “proceed in a manner that threatens to diminish or impair accrued pension...
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