Cries of Betrayal as Detroit Plans to Cut Pensions

[Lasher]

11. But they are still trying to proceed.

Michigan AG Appeals Court Order Blocking Detroit Bankruptcy

July 19, 2013

A circuit court judge has ruled that Detroit's bankruptcy filing violates the state's constitution and laws, and must be withdrawn; Michigan's attorney general has already appealed the decision.

Judge Rosemarie Aquilina made the ruling on Friday, a day after the city became the largest municipality in history to declare bankruptcy under federal Chapter 9 rules.

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Aquilina said the Michigan Constitution bars any action that would reduce public pensions. She said that Gov. Rick Snyder and Kevyn Orr, Detroit's state-appointed emergency financial manager, violated the constitution when they filed for bankruptcy because they were aware that the result would be reduced pension benefits.

Attorney General Bill Schuette's office says it's already appealed the decision:

"In addition, the Attorney General filed motions to stay the trial court rulings and any future proceedings while the appeals proceed," spokeswoman Joy Yearout said. "Later today, we expect to file additional motions seeking emergency consideration."

http://www.npr.org/blogs/thetwo-way/2013/07/19/203696417/michigan-ag-appeals-court-order-blocking-detroit-bankruptcy