Judge Rhodes releases opinion on Detroit bankruptcy decision - Fox 2 News Headlines

Judge Rhodes releases his opinion on Detroit bankruptcy decision

Posted: Updated:

DETROIT (AP) -- Two days later, a judge is elaborating on his decision to let Detroit stay in bankruptcy by releasing an opinion of more than 140 pages.

Federal bankruptcy Judge Steven Rhodes made his historic ruling from the bench Tuesday. But he also promised to give a written opinion, a key step in a case that will be appealed.
Rhodes starts his opinion Thursday with a quote from the U.S. Constitution that says Congress has the power to set the bankruptcy rules across the U.S. He says federal law trumps a provision in the Michigan Constitution that protects public pensions.

Rhodes says the pensions of Detroit retirees are just like other contracts that can be broken in bankruptcy. Detroit says pensions are underfunded by $3.5 billion. Unions and pension funds are appealing.

Powered by WorldNow

WJBK-TV | Fox 2
16550 West Nine Mile Rd.
Southfield, MI 48075

Main Station: (248) 557-2000
Newsroom: (248) 552-5103

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices