Was Detroit even eligible to file for bankruptcy?
Today the 6th Circuit Court of Appeals agreed to answer that question, raised by a group of pensioners. The panel in Cincinnati said it would hear the group’s appeal which is a challenge to the December decision from Bankruptcy Judge Steven Rhodes who ruled Detroit was authorized to pursue its landmark bankruptcy case.
For the time being, the 6th Circuit is not expediting the appeal.
“It’s definitely an encouraging development in the case. The 6th Circuit in its order said that the issues in the petition relevant to eligibility warranted direct appeal primarily because they are a matter of such public importance,” says Ryan Plecha, an attorney representing retired city workers including police and fire.
Plecha says there is no timeline for the appeal process set. He and other attorneys representing city employees will continue mediation talks with the city while their appeal of the bankruptcy. “Uncertainty remains as to what the ultimate decision or ruling will be,” he says. ‘This is a very promising event.”
Here is the pensioners’ petition for permission to appeal: