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.
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