Detroit Corporation Counsel appeals judge's ruling to dismiss lawsuit against state

Published On: Jul 05 2012 09:02:12 PM EDT
Updated On: Jul 06 2012 05:13:45 PM EDT
Krystal Crittendon
DETROIT -

Detroit's top attorney has asked a judge who threw out her lawsuit challenging the city's consent agreement with the state of Michigan to reconsider.

Thursday was the deadline for Corporation Counsel Krystal Crittendon to appeal a judge's ruling to dismiss the lawsuit. The judge said Crittendon lacked legal standing to sue without the approval of Detroit Mayor Dave Bing.

Read: Crittendon's lawsuit

Crittendon argues the consent agreement is a violation of the city charter which prohibits Detroit from contracting with entities in debt to the city.

The state of Michigan denies it owes Detroit any money.

On Friday, Detroit Mayor Dave Bing released the following statement:

I am disappointed the Corporation Counsel has chosen to prolong the needless litigation over the Financial Stability Agreement.

By filing this motion of reconsideration, on the last possible day to appeal Judge William Collette’s previous ruling, she keeps the legal challenge of the FSA alive and she keeps the Detroit’s financing at risk, making it harder for us to stabilize the city. This lawsuit does not fix a street light, does not put buses in service, and does not put more police officers on the street.

Moreover, the Corporation Counsel’s lawsuit has already caused the City to pay higher interest rates on its borrowed money and damaged the City’s credit rating.  It has caused our lenders to call in a portion of our short-term financing.  And, it nearly caused the City to lose a $28 million dollar revenue sharing payment this month, which was avoided only by the efforts of City Chief Financial Officer Jack Martin and the State Treasury Department. 

It is my hope the Court rules swiftly on the motion and that the Corporation Counsel abandons the lawsuit.  We need to put this behind us so we can move Detroit forward.

More: Detroit city in crisis

Bing has asked Crittendon to resign from her position, arguing she exceeded her authority when she penned the lawsuit aimed to derail the city's agreement with the state. However, Bing has not gotten the support from City Council which he would need to get Crittendon fired.

City Council members praised Crittendon's courage and have called the mayor's move to remove her rogue. That's after Bing labeled Crittendon's lawsuit action a rogue maneuver.

"I think it's bull****," said City Council President Charles Pugh. "I do. I think that this is unfortunate. The Corporation Counsel was doing her job."

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