Ingham County Judge throws out lawsuit challenging Detroit's consent agreement with Michigan

Published On: Jun 13 2012 03:20:49 PM EDT
Updated On: Jun 13 2012 03:40:09 PM EDT

An Ingham County judge ruled Wednesday to dismiss a lawsuit filed by Detroit’s Corporation Council Krystal Crittendon, which challenged a consent agreement between the City of Detroit and the State of Michigan.

INGHAM COUNTY, Mich. -

An Ingham County judge ruled Wednesday morning to dismiss a lawsuit filed by Detroit's Corporation Council Krystal Crittendon which challenged a consent agreement between the City of Detroit and the State of Michigan.

The ruling by Judge William Collette came down just before 10:30 Wednesday morning.

---Judge William Collette

More: Gov. Rick Snyder says he's not backing down, Detroit must find solution to cash problem

The argument

Crittendon had argued the city charter prohibits Detroit from making contracts where at least one side owes the other money. She says Michigan owes Detroit $220 million in revenue sharing. Crittendon did not attend the hearing.

During the hearing Judge Collette asked Corporation Counsel whether it has the veto power over contracts. A lawyer representing Corporate Counsel replied, "No."

---Attorney representing Corporation Council, Krystal Crittendon's office

The ruling

Ingham County Judge William Collette said Wednesday that Mayor Dave Bing did not give permission for the lawsuit to be filed and therefore the case is over.

Complete coverage: Detroit: City in Crisis

More: Detroit Mayor Dave Bing: State likely will withhold revenue sharing

Watch: Uncut interview with Gov. Rick Snyder about Detroit

"I do believe in my opinion in one issue, the capacity to bring this lawsuit resides with the City Council and Detroit's Mayor and not the City Attorney and will not move forward with this lawsuit," said Judge Collette.

An appeal is likely.

Michigan's Secretary of Treasury Andy Dillon said the state is pleased with the judge's decision which will allow them to move forward with the city of Detroit.

"We are pleased with the court's ruling which allows the state to continue working collaboratively with the city of Detroit on the implementation of the financial stability," Dillon said. "We continue to be focused on working with the mayor and CFO Jack Martin to help stabilize the city's finance and ensure citizens are receiving the services they deserve and expect."

-- Detroit Mayor Dave Bing met with City Council on Monday.

-- Detroit Corporation Counsel Krystal Crittendon

Detroit City Council schedules special session for Thursday

The Detroit City Council announced Wednesday a special session scheduled for 2 p.m. Thursday.

The City Council said the session will be held to vote on a resolution in regard to the "City of Detroit v. State of Michigan" lawsuit which was dismissed by a judge Wednesday morning.

Read: City Council's special meeting

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