Judge Halts Lawsuits Seeking to Block Detroit Bankruptcy

Scott Cohn, CNBC, July 24, 2013

A federal bankruptcy judge on Wednesday suspended pending lawsuits in state courts that are challenging Detroit’s bankruptcy filing.

U.S. Bankruptcy Judge Steven Rhodes said there is nothing in the 10th Amendment, which guides state vs. federal jurisdiction, that bars federal jurisdiction in this case. He said his court will be the exclusive venue for any legal action regarding the bankruptcy.

Detroit’s Emergency Manager Kevyn Orr—a bankruptcy expert appointed by Gov. Rick Snyder earlier this year to oversee Detroit’s finances—has said the federal bankruptcy filing is necessary to get the city out from under some $18 billion in liabilities.

But the city’s employee unions argued the bankruptcy is an end-run around the state constitution, which protects their pension benefits. The unions backed a series of lawsuits filed in Michigan courts to block the bankruptcy. Last week, Ingham County Circuit Judge Rosemarie Aquilina ruled the bankruptcy filing unconstitutional, but a state appeals court put her ruling on hold, and Orr argued the federal court should make that stay indefinite.

The emergency manager said bankruptcy is a federal matter. A bankruptcy filing normally puts all other litigation on hold, but Orr’s office asked the judge to extend that automatic stay to cover him and state officials, including the governor. Orr’s attorneys acknowledged the request was unusual, but said “recent events”—the lawsuits in state court—made it necessary.

{snip}

Because of the intense interest in the largest municipal bankruptcy filing in U.S. history, the hearing was moved from Rhodes’ normal courtroom to a much larger one across the street at the Theodore Levin Federal Courthouset. Many members of the public and the media were relegated to an overflow courtroom down the hall to view a video feed.

Outside the courthouse, a handful of protesters carried signs in support of the unions. One demonstrator played a recording of Martin Luther King’s “I have a dream” speech through a megaphone.

{snip}

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  • [Guest]

    We’re not supposed to notice that the $18 billion liability is not as great a liability as an overwhelmingly black population.

    • Creepy as a cracker!

      I would say that the 700,000+ blacks are a greater liability then 18B of debt.

      • Guest

        The 70k whites and hispanics will have a hard time paying off that 18B debt without those section 8 vouchers

      • Stan D Mute

        The Africans are an immeasurably greater liability. Detroit could liquidate Belle Isle, DWS, and DIA to generate more than $18B in cash. But Detroit will never be rid of the 700,000 parasitic Africans who produce nothing but chaos and destruction.

        • Creepy as a cracker!

          and might I add, they will always be a drain on the White taxpayer where ever they might go.

      • [Guest]

        I’d say you’re right.

  • Stentorian_Commentator

    I, too, have a dream, a dream of a fleet of passenger and freight ships steaming at least the youngest and most fertile of the black population back to Africa. Alas, just a dream.

    • Ed_NY

      Except the sharks will be traveling in the wrong direction.

    • Strider73

      How about to Haiti? A much shorter (and less expensive) trip.

      • Romulus

        Still too close for comfort.

      • MBlanc46

        All the Haitians are trying to come here.

    • MBlanc46

      Sounds like Marcus Garvey. Alas, he failed.

  • din_do_nuffins

    I have a dream, too, and it sure doesn’t look like the dreams of St. MLK or La Raza. Mine is more 1930s Germanic.

  • Michelle

    What might black people learn from this? That you can accumulate mass amounts of dept by making one bad life choice after the next,but no worries cause you can claim bankruptcy and all will be forgotten.. There’s no justice in that. They made their filthy bed,they should have to lay in it. Your cities poor, so think of ways to get money back into the city. So typical black,to call it quits and let the government and everyone else’s tax dollars assist them. As if they don’t have enough of that already..How about they go find jobs,even if they have to find work out of the city, cut off welfare in Detroit for acouple years,and put that money back into the city. That alone will generate enough to get out of dept. Its their problem why should anyone else have to fix it. They wanted Detroit they got it. Its noones fault but their own that They turned their city into the poverty embarrassment that it is. Im so sick of blacks and their shameless ways of getting government assistance for Everything cause they literally can’t do Anything on their own. I know small children who are more self sufficient then most adult blacks..its embarrassing.

    • Ed_NY

      They said all debtors, employees and pensioners will have to accept less. I didn’t hear anyone say that entitlements will be cut.

    • evilsandmich

      What might black people learn from this?

      Absolutely nothing.
      What might white/Jewish creditors learn? Perhaps that loaning money to black majority municipalities might not be the best investment option. Detroit will be frozen out of the private credit markets for quite some time would be my guess. The feds can force banks to make bad housing loans, but they can’t make anyone buy bad munis. No doubt some version of a “government student loans for munis” plan is brewing somewhere inside Congress.

  • libertarian1234

    “Judge Rosemarie Aquilina”

    These liberal judges are tainted to their very core and are so biased their decisions are worthless, but when they’re non-white as well there’s no way they would EVER render a decision that they viewed to be unfavorable to non-whites.

    • Strider73

      Either she did not know that bankruptcy is a 100% federal matter IAW Article I, Section 8 of the Constitution, or she simply did not care. Either way, she should be kicked out of office and permanently disbarred.

      • Romulus

        “These are not mere orcs!! These are uruk-kai”
        Ever notice the resemblance between those movie monsters and that cities inhabitants.

      • I said basically the same thing when her “order” came out — How does a county circuit judge intervene in a federal procedure?

        • ShermanTMcCoy

          Same way the Parasite-In-chief ignores the Constitution he swore to uphold.

    • Extropico

      I am discommoded by the decision to let the bankruptcy proceed in that it does not honor Obama. 😀

  • Spartacus

    Whenever I’m depresed, or sad, or just confused, I remember that at least I don’t live in Detroit, and I feel better 🙂

    • Puggg

      This is what they call “winning” a war. Though it makes you wonder who really won, and what they/we really won. In a few hundred years, Japan will still be enduring the humiliation of losing a war to a country that by that time will no longer exist.

      • willbest

        Fertility rates what they are, in a few hundred years there won’t be many Japanese left to gloat

        • WR_the_realist

          Japan is a densely populated country. While their population may decline for a while, I have no doubt that fertility rates will rise once again. And if they maintain their current immigration policy, Japan will still be Japanese. Whereas the United States will look like a much bigger Detroit.

          • Romulus

            Really!? Japan is a volcanic archipelago with 30 million people around it’s capital. Their power generation comes from 54 nuclear reactors and imported fossil fuels. With the exception of the bounty of the sea to provide the necessary day to day caloric intake, they import most of their food. They don’t have scalable agriculture to suit their needs and the majority of their population is over 55. They tried last century to acquire more territory for their burgeoning population but didn’t succeed. However, Hawaii is now 60% Japanese. The good news is that Japan is still nearly entirely homogenous. Their population will eventually reach a homeostatic balance with available resources. Either what can be provided from within or without. Only then will their birthrate come up. Were it not for American consumerism and presently also China, net GDP wouldn’t be what it is.

          • Bon, From the Land of Babble

            Because the government is going to start PAYING the Japanese to have more children:

            A proposal to pay parents about $3,400 a year per child…The cash for kids plan is the brainchild of the country’s ruling Democratic Party of Japan.

            The proposal would pay families the money every year until the child reached high school. It is an effort to boost Japan’s birthrate, which is one of the lowest in the world and is a major drag on the country’s economy. It is compounded by Japan’s rapidly aging population.

            Meanwhile… the American and British governments are doing their best to genocide their native born White populations by forcing Native Born Whites to accept their own displacement and fund 3rd world welfare births. Don’t like it? Your career and reputation will be ruined for resisting the genocide of the White race and ONLY the White race.

            At least the Japanese government, unlike the American and British governments, looks out for native born Japanese — and refuses to accept massive 3rd world, destitute, blacks and browns from the most depraved areas of the world.

            Our worst enemy, and a ruthless one at that, is our own government. It means to genocide us and won’t stop until it does.

            Bon

          • evilsandmich

            Studies have been done (too lazy to find) that these birth credits simply don’t work. The government has to make everything more expensive via taxes to pay for the subsidy, but in making everything more expensive it makes the subsidy woefully inadequate. Rinse-lather-repeat as this process is seen in a wide variety of government subsidy schemes.

          • Strider73

            There is the rub. Japan’s new PM has ordered the central bank to print yen at a rate that would make our Fed seem miserly. The country has been mired in recession/depression for nearly 25 years because the government refuses to let zombie businesses fail (especially the banks). Until Japan adopts the Iceland model, its economy will not improve.

          • The problem there is that Japanese save money and do not spend very much of it. They tried making capital improvements as a way to stimulate their economy, but the ordinary people perversely saved the money they had made rather than recirculating it into their economy.

            This new measure won’t help because ordinary people won’t change quickly.

  • WR_the_realist

    Just whom do the unions expect to pay for their generous pension and health care benefits? What powerful economic engine is left in Detroit for them to tax? If the argument is that promises must be kept, no matter what, then the liability must fall upon those who made the promises. So let the unions get what they can of the personal assets of the politicians who have kowtowed to their demands for so many decades.

    • willbest

      I would raise the property taxes to 20% of FMV and then forclose on the entire city. Bulldoze it over, and build a communit of super exclusive mansion. Then I would install a mag rail capable of reaching NYC in 30 minutes and then I would sell those mansions for 300 million a pop.

      • IstvanIN

        There are a lot of nice, classic buildings in Detroit like libraries, schools, train stations and department stores that could be rehabbed if large swathes of land could be bought up, the locals disposed of and a new population brought in.

        • Fixed: There were a lot of nice, classic buildings in Detroit like libraries, schools, train stations and department stores …….

          • MBlanc46

            Many of them are still there, vacant. The shell of the Michigan Central train station has become almost iconic of twenty-first-century Detroit. A lot of the neighborhoods look like the aftermath of World War II, but much of the downtown infrastructure still exists. All we need are a million humans to invest in it, live there. and run the place.

    • Stan D Mute

      About all that’s left in Detroit city limits is GM (government motors) and Blue Cross. There are some smaller outfits like Compuware, Quicken, and Little Caesers Pizza, but not many. The majority of the population, claimed at 700,000 but probably less and nearly 90% African, is on the public dole. An article I read last week claimed the entire city of Paris, France could fit within the vacant and uninhabited portion of Detroit. There are some 70,000 abandoned buildings in the city limits.

      So, to your question, there is insufficient tax base to support current programs. Detroit already has the highest tax rate of any major city in the US.

      The city does, however, have some assets. Belle Isle is worth quite a bit to the right developer (a casino district perhaps?) and the Detroit Institute of Arts has a collection valued at up to $20 billion (coincidentally the same sum as the city’s indebtedness). Also, Detroit Water & Sewer and the public lighting utility have some value to investors. DWS, particularly, has value in that it is the primary water source for almost all of southeast Michigan from Monroe up to Flint.

      Given Detroit’s 70% illiteracy rate, the DIA (Arts Institute) is absurd. It should be liquidated in entirety and the buildings sold to Wayne State University or UofD. Such a vast and valuable art collection has no place in post-apocalyptic Detroit.

      • If what you are saying is true:

        Detroit Water & Sewer and the public lighting utility have some value to investors. DWS, particularly, has value in that it is the primary water source for almost all of southeast Michigan from Monroe up to Flint.

        Then it looks like White people will be bailing out DeToilet with ridiculous water rates.

      • Bon, From the Land of Babble

        I read on another site that architectural recovery businesses have already picked over the area — and made a FORTUNE.

        I’m sure that was after all the copper wiring had already been stripped out.

        The murder rate is the highest in nearly 40 years, only a third of the city’s ambulances work, and police cars and fire trucks are also in poor condition. There are 78,000 abandoned buildings in the city and 40 per cent of the street lights do not work.

        With high crime, no tax base and a 47% illiteracy rate there is zero hope for Detroit to recover.

        Bon

    • MBlanc46

      The idea of making public officials bear some personal liability for their policies is an intriguing one. I doubt that any such thing could ever be implemented, but it would be good if at least some way could be found to really put some fear of retribution in them.

  • MerlinV

    Burn baby burn! Let the Africans TOTALLY take over so that everyone on the entire planet can see the results. Gov Snyder should have appointed Sharpton as Detroit’s emergency manager so that little Africa a.k.a. Detroit could go down in Zulu flames that much faster!

    Oh yeah, Hillary, it do take a village. Hahaha, burn baby burn!

    • evilsandmich

      I like that idea; creditors and pensioners can be repaid with Detroit Congobucks.

  • Stan D Mute

    Welfare is a State program, not a city program. Detroit is *heavily* subsidized by the State even as far as providing State Police to patrol in the city (where police response time is averaging 58 minutes).

    Detroit is just the latest example of African failure. The only reason there isn’t famine and pestilence in the city is the financial support from the State and Federal governments. Without that support, Detroit would be indistinguishable from Port Au Prince (Haiti) or Monrovia (Liberia).

    Yet the lesson is impermissible. The fault is laid at whitey’s feet. Whitey moved away and caused Detroit to fail. We are not permitted to question why whitey left nor why the African was unable to even sustain let alone prosper with the best roads, utilities, and other infrastructure in the world already built and simply given to them when whitey ran for the suburbs and exurbs.

    Detroit will not be the last. Look for Atlanta, Newark, Baltimore, Philadelphia, and eventually Chicago to follow in the years and decades to come.

    • Romulus

      Yes, exactly why the east and left coast are pouring into the south, the heartland, Texas ,the northeast and Pacific northwest.

      • ShermanTMcCoy

        Closely followed by the parasites.

        • Ed_NY

          Where Whites go, parasites follow!

  • Romulus

    What the *ell does the plagiarists’ speech have to do with bankruptcy.!! If your broke, your broke, period. Nobody deserves to reach into anyone elses pocket and pick it. America is the most generous nation in the history of the world. Somehow,it’s never going to be enough.

    • ShermanTMcCoy

      It has nothing to do with it. But “naggers” are stupid.

  • Jefferson

    I notice that among the U.S cities that have gone bankrupt so far, none of them are majority White cities.

    White people are all a Minority in Detroit, San Bernardino, and Stockton.

  • Detroit’s Emergency Manager Kevyn Orr—a bankruptcy expert appointed by …

    Kevyn Orr is no bankruptcy expert. He is black and has a JD that was handed to him because he was black. The Kevyn Orr appointment was a joke from day one. He did one thing, allow the law firm he “formerly” worked for to bill DeToilet for millions of dollars. He is thinking full partner.

  • Obama will make the wrong decision if it comes down to him forcing a choice.
    Libs generally fail to recognize the repercussions of their choices,

  • At least the bankruptcy is going through. I can’t help but be impressed at the Afritards’ accomplishment: They ethnically cleansed the greatest manufacturing center in the developed West and then bankrupted it.

    • MBlanc46

      It really does indicate the direction in which their talents lie, doesn’t it?

      • Epiminondas

        The fleas will eventually kill the dog if you don’t get rid of them.

        • MBlanc46

          Fleas you can just exterminate. That’s not an option with blacks. We must reassert containment and control.

  • Ed_NY

    That would be wonderful, I would gladly help pay for such a solution.

    • newscomments70

      I feel badly for South African whites, especially farmers and children. Whether the white South Africans are “privileged”, living in nice houses behind razor wire, wondering when the blacks are coming into to rape, mutilate, and kill…or they are living in squatter camps. I wish they were living in in California with their families instead of the criminal minorities we have here. I do not want every white South African though to immigrate to the US. As an SA poster once stated, not EVERY South African white is someone you would want to know. There are SA whites who are addicts, lazy…and the lowest form of life: liberal. There are white liberals in SA. I don’t want them, they can rot there.

      At this time, there is no solution to the black problem, other than to avoid them. Liberals make that difficult to impossible, as we know. Sometime in the future, there will be a breaking point, when we just collectively explode in anger. Outspoken blacks such as Carol Swain and Pastor Manning warn people of this happening, but no one is listening. What will happen then? That is hard to say. If blacks were deported to Africa today, vile, liberal Europeans would gladly give ALL of them asylum in Europe. In the distant future, even Europeans won’t be so liberal anymore. We are living in an age of insansity, but most are seeing the light.

      • Creepy as a cracker!

        I would accept that demographic swap in spite of the White underclass. There is no way they can be as bad as what we have now.

  • Bon, From the Land of Babble

    Unlike the Feds, Detroit cannot conjure up money out of thin air. They can, however, give the city workers and retirees IOUs or vouchers like CA did a few years ago

    I’d like to see O’Mara and Zimmerman call for an investigation of the Detroit City Council.

    Other than that, who cares what a bunch of racist, corrupt, political hacks from a 3rd World bankrupt city think?

    Investigating an innocent man is a blatant violation of his civil rights.

    Bon

    Balance This!!

    • I already had that one burned to the CD marked “Desktop Background Pictures”. I’m sure I got it here from you.

      “Zone Free Zone”. ‘Nuff said.

      Stick a fork in Detroit – it’s probably done.

      • Bon, From the Land of Babble

        I’ve got a couple of REALLY funny hand-written signs from Detroit I’d like to post that would get me kicked off this site in a heart beat.

        Here are a couple from the B list — apparently from Detroit…or any another black ghetto…

        Bon

        • Irishgirl

          That ski masks sign is the funniest thing I have ever seen.

          Bon, you rock.

  • MBlanc46

    Socialism isn’t what happened to Detroit. Blacks are what happened to Detroit.

  • Epiminondas

    Bankruptcy has to go forward. Detroit can’t write any more checks. Can anyone here point to any city or country in the world that is stable, prosperous AND that is run by/composed of blacks?

  • shmo123

    I’m still laughing about the Governor of Michigan, who, while explaining why the state was forced to do what it had to, referred to the population of Detroit as “the wonderful people of Detroit”. Undoubtedly Mr. Snyder, undoubtedly.

    • MBlanc46

      Well, he’s a pol. He has to be a hypocrite. It’s part of the job description.