Cases Against Detroit's Bankruptcy Suspended

By: Associated Press
By: Associated Press
Judge stops lawsuits against Detroit

The Detroit skyline rises behind the Monument to Joe Louis, also known as "The Fist," Thursday, July 18, 2013. State-appointed emergency manager Kevyn Orr asked a federal judge permission to place Detroit into Chapter 9 bankruptcy protection. (AP Photo/Paul Sancya)

DETROIT -- A federal judge has put a stop to lawsuits threatening Detroit's bankruptcy and declared that he will handle any challenges.
The decision Wednesday after two hours of arguments is a victory for Detroit. A county judge last week said Gov. Rick Snyder ignored the Michigan Constitution and acted illegally in approving the Chapter 9 filing, the largest ever U.S. municipal bankruptcy.
Retirees sued, claiming their pensions are protected by the constitution and are at risk in a bankruptcy.
U.S. Bankruptcy Judge Steven Rhodes suspended any pending lawsuits and barred new ones. He says his court will be the exclusive venue for any legal action regarding the bankruptcy.


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