Legal arguments in Detroit bankruptcy case being heard

(WXYZ) - A full day of legal arguments are taking place inside court in Detroit's bankruptcy case. Retirees and city employees gathered outside the courthouse and displayed a lot of emotion.

The protesters are holding an informational picket on the sidewalk outside of Federal Court downtown.

Inside, attorneys for retirees and employees are trying to convince Bankruptcy Judge Steven Rhodes that he should rule Detroit is not eligible to be in bankruptcy.

The arguments center on the decision to go into bankruptcy by Governor Rick Snyder and Detroit Emergency Manager Kevyn Orr. Those against the bankruptcy say it violates the Michigan Constitution which protects public employee pensions from cuts. 

The AFSCME Union which represents the most Detroit city employees also argued that Chapter 9 Municipal Bankruptcy is also unconstitutional.

Other attorneys will be representing the two Detroit Pension systems and individual city employees.
Next week is a trial in bankruptcy court over eligibility during which Emergency Manager Kevyn Orr could be called as a witness.
 

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