Detroit retirees seek stay of eligibility ruling deadlines, hearings

By Caroline Salls

Pittsburgh, Sept. 13 - The City of Detroit's official committee of retirees asked the U.S. Bankruptcy Court for the Eastern District of Michigan to stay all deadlines and hearings related to determination of the city's Chapter 9 eligibility pending a decision on the committee' motion for the eligibility issues to be determined by a district court, according to a Friday court filing.

As previously reported, the committee objected to the city's Chapter 9 eligibility on the grounds that Detroit's emergency manager was not authorized by state law to file the petition on behalf of the city.

In addition, the retirees said the bankruptcy court does not have constitutional authority to hear and determine the issues raised in the eligibility objection.

"The retirees are constitutionally entitled to have an Article III court determine basic redressable issues affecting their livelihood as current or past citizens of the State of Michigan," the committee said.

The committee said the appointment of the emergency manager was part of a plan "to unilaterally alter, reduce or eliminate retirement compensation benefits promised by the city."

The retirees said the emergency manager took a further step to alter, reduce or eliminate the promised benefits by authorizing the Chapter 9 filing, "acting under the assertion of improving the city's much deteriorated health and safety."

Detroit filed bankruptcy on July 18 under Chapter 9 case number 13-53846.

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