The primary justification for Emergency Financial Managers or Emergency Managers in Michigan from the very earliest iterations (and continuing through to today) is that some cities and school districts were just too full of corruption and ineptitude and that the state needed to swoop in and save the day. However, this easy answer has turned out not have been the […]Read more ›
Tag: Lou Schimmel
Some Good News: US Court of Appeals sends Emergency Manager suit back to lower court to decide constitutionality issues
Well, this is pleasant news Earlier this year, public employee retirees from Pontiac filed a lawsuit to reverse a decision by Emergency Financial Manager Lou Schimmel to cut some of their health care benefits, increase their deductibles, and reduce their pensions. They said it was a violation of federal law regarding the impairment of contracts. In June, a district court […]Read more ›
Michigan’s Emergency Manager law faces legal challenge from Flint & Pontiac retirees for favoring banks over people
This isn’t going away, governor
Retired government employees from both Flint and Pontiac have filed a complaint with the U.S. District Court in Detroit to have Public Act 436 and its predecessor Public Act 4 — Michigan’s anti-democratic Emergency Manager laws — declared illegal under the Bankruptcy Clause and Contracts Clause of the US Constitution, as well as Chapter 9 of Title 11 of the United States Code. The complaint (pdf) rests largely on the argument that these laws favored one set of creditors over others. Namely, they claim retirees and unions have seen their contracts negatively impacted while businesses and banks have gotten away without taking a hit.
Details are after the jump.Read more ›
It’s hard to keep up…
It’s been awhile since I’ve done a summary of the latest news about Michigan’s Emergency Manager Law and the new surrounding our illustrious
saviors dictators Emergency Managers so I thought it would be a good time to so. On a personal note, I was interviewed by freelance journalist Chris Lewis this past week for a piece he’s doing for The Atlantic so it’s clear to me that this story continues to receive national attention.
It’s all there after the jump. And there is a LOT there after the jump.Read more ›