In re Detroit, Michigan
United States Bankruptcy Court for the Southern District of Michigan
504 B.R. 97 (E.D.Mich. 2013)
The city of Detroit (debtor) was insolvent and filed for bankruptcy under chapter 9 of the bankruptcy code. A number of municipal pension plans (creditors) had accrued pension benefits owed to plan members, which formed some of the city’s debts. These pension benefits would be affected by the city’s bankruptcy. The Michigan constitution provided that accrued pension benefits were contractual obligations, and that pension plan benefits could not be impaired or diminished. Michigan, however, allowed insolvent municipalities to participate in chapter 9 bankruptcy. The pension plans objected to the bankruptcy proceedings, alleging that Detroit was barred by the state constitution from impairing the plan benefits and that any diminishment in plan members’ rights would violate the Tenth Amendment to the United States Constitution.
Rule of Law
Holding and Reasoning (Rhodes, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 725,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 725,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.