Did the state negotiate in good faith at the Detroit bankruptcy hearing?
This week, Bankruptcy Judge Steven Rhodes is hearing arguments on whether the city of Detroit is eligible for Chapter 9 bankruptcy protection. Both Governor Snyder and Detroit Emergency Manger Kevyn Orr have testified. They argue that bankruptcy is Detroit’s only path to solvency.
John Pottow weighed in on the matter on today's Stateside program. Pottow is professor of law at the University of Michigan who specializes in bankruptcy and consumer protection.
"I think the hardest issue about this is this Michigan constitutional provision about protecting the pensions," Pottow said. "This gets to what's animating the objectors and the unions is, why would the governor want to rush Detroit into bankruptcy? It's not what people generally clamor toward. And their concern is that because of this protection the workers have under the state constitution, that the governor might be trying to use the federal bankruptcy law as a way to get around the Michigan constitution."
Listen to the full interview above.