Detroit bankruptcy eligibility hearing continues

(WXYZ) - Detroit's bankruptcy eligibility phase continues in court on Wednesday.  

Eleven objectors spoke first on Tuesday raising legal issues mainly over the Michigan Constitutional protections on public employee pensions, whether a Federal Chapter 9 process can still make cuts. 

Detroit is setting a national precedent in this case being watched coast to coast and Judge Steven Rhodes made sure when he took a position and asked questions to attorneys that everybody knew it was in a hypothetical context. 

Judge Rhodes has scheduled a trial on eligibility for next week.  He is not expected to rule until near the end of October.  The rebuttal legal arguments will continue on Wednesday. 

Krystal Crittendon who is a Detroit City Attorney argued that Detroit Emergency Manager Kevyn Orr is not properly in office because voters repealed Michigan Public Act 4 last November, the Emergency Manager Law that was replaced by the Governor and Legislature with PA 436 at the end of last year. 

That is a legal challenge that was filed in another court but is on hold during bankruptcy.

Bruce Bennett, an attorney for Detroit who is with the law firm Jones Day, argued to the court if people don't like the Chapter 9 law, write congress and get it changed. 

If people don't like the people in office, vote them out and if you don't like the Emergency Manager, write the Governor.  Judge Rhodes asked Bennett if the state would cover cuts to pensions if they are made in bankruptcy. 

Bennett responded that would be great, but the state has made it clear the city is on its own to restructure its debt. 

Print this article Back to Top