The Ingham County judge initially wanted to block the filing altogether, but was 5 minutes too late as Detroit emergency manager Kevyn Orr had already submitted the 3000 page document before the hearing began.
Judge Rosemarie Aquilina from the Michigan circuit court ruled during the hearing Friday that the bankruptcy filing violated Michigan Constitution and should be withdrawn.
"I have some very serious concerns because there was this rush to bankruptcy court that didn't have to occur and shouldn't have occurred. Plaintiffs shouldn't have been blindsided. This process shouldn't have been ignored," said the judge over the abruptness of the filing, and how it violated her power to block it from even happening in the first place.
Douglas Bernstein, a partner with Plunkett Cooney law firm in Birmingham, Michigan responded to what he thinks is an unreasonable judgment saying, "This is generally how bankruptcies occur: You file bankruptcy when there is an impending crisis at the 11th hour. You file bankruptcies to stave off litigation."
The judge delivered her order clearly, "In order to rectify his unauthorized and unconstitutional actions ... the governor must (1) direct the emergency manager to immediately withdraw the Chapter 9 petition filed on July 18, and (2) not authorize any further Chapter 9 filing which threatens to diminish or impair accrued pension benefits."
Aquilina claims that the Michigan Constitution does not allow the state to work to reduce pensions of public employees, which includes those employed in Detroit. Governor Rick Snyder and Orr was accused of violating the state constitution by going through with the bankruptcy filing.
However, it seems that the Attorney general Bill Schuette will continue to appeal the case to higher courts to try to push through the bankruptcy filing.
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