Skip to main content

Judge Tosses Lawsuit over Detroit Fiscal Deal

Submitted by webadmin on

A Michigan judge yesterday dismissed a lawsuit that challenged Detroit's financial stability agreement and which had threatened to leave the city without cash to make a critical debt payment due on Friday, the Toronto Star reported yesterday. Ingham County Court Judge William Collette ruled that Detroit's corporation counsel, the city's top lawyer, lacked the authority to bring the lawsuit. Judge Collette said that the power to bring such a lawsuit rested with Detroit’s mayor and city council. Corporation Counsel Krystal Crittendon, who filed the complaint in the state Court of Claims earlier this month, claimed that the financial stability agreement, which put Detroit's struggling finances under stricter state control, was invalid because Michigan owes the city more than $230 million and it was in default to the city.