US Defends Constitutionality Of Detroit Bankruptcy

Law360, Los Angeles (November 7, 2013, 6:40 PM EST) -- The U.S. on Wednesday lobbied a Michigan federal judge to reject a labor union's arguments challenging the constitutionality of Detroit’s bankruptcy, saying the union’s argument runs contrary to Congress and the Supreme Court.

The American Federation of State County and Municipal Employees had argued that Detroit was ineligible for chapter 9 bankruptcy because it was barred by Article I, Section 10 of the Constitution, according to its October brief. But that section articulates powers forbidden to the states, while the laws guiding chapter 9 are federal,...
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