Court suspends lawsuits over Detroit bankruptcy

By: Associated Press Email
By: Associated Press Email

DETROIT The Michigan appeals court has put the brakes on litigation challenging state officials over Detroit's bankruptcy filing.

The court made brief rulings Tuesday in three lawsuits being handled by Ingham County Judge Rosemarie Aquilina. She says Gov. Rick Snyder acted illegally in approving the bankruptcy because it could jeopardize the pensions of Detroit retirees.

The appeals court ordered a timeout while it determines whether it should take a full appeal from state attorneys.

Separately, a federal judge is holding the first hearing Wednesday since Detroit filed for bankruptcy last week. The key issue is whether to allow that litigation to run its course in state courts or simply make it part of the bankruptcy case.

The Michigan Constitution says public pensions "shall not be diminished or impaired."

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