Parties go to battle in bankruptcy court of Detroit case

On Tuesday, attorneys representing city unions, retirees and creditors argued in bankruptcy court that Detroit’s bankruptcy violated Michigan’s constitution.  They argued that ceding control of the city’s finance to the federal government, through bankruptcy, was unconstitutional.  On Wednesday, they argued the legality surrounding the appointment of the emergency manager for Detroit – – the state Legislature and the Governor to enacted a law permitting the appointment even after a failed attempt to pass it by public referendum.  Even the bankruptcy judge questioned this reasoning.

For more read both stories at, “Judge hearing Detroit bankruptcy case grills state attorney over EM law” and “Legality of Detroit bankruptcy contested in court.”