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DETROIT (AP) — The federal judge hearing Michigan’s lawsuit against Detroit over its bankruptcy has ruled a federal judge cannot intervene in the case to decide if the Motor City can rehire police officers and firefighters in its police force.
U.S. District Court Judge Steven Rhodes issued the ruling Monday as the Detroit Police Officers’ Retirement System requested the judge intervene. The city is appealing Rhodes’ ruling.
The judge wrote Rhodes’ ruling would effectively close the door to any further negotiations with the police pension fund.
He said Rhodes will be required to find the public interest is not served if Rhodes finds the public interest is satisfied. The ruling comes a day after an appeals panel that has been hearing arguments on the city’s claims said Rhodes’ ruling is a step in the right direction but is far short of what Detroit needs.
Attorney Jeff Follmer had argued there may not be any need for Rhodes’ intervention on the issues before him in his ruling Monday:
• How to reconcile Detroit’s desire to retain police officers “with the need to save” pensions for the estimated 15,000 cops. Follmer said Rhodes’ order should be vacated and a new judge must be appointed.
• Whether Rhodes’ order covers negotiations between the city and retirees.
• Whether the city can unilaterally change the way it handles pension payments on its behalf. Follmer said this could make the city liable for its own pension shortfall.
Follmer has suggested a new judge be appointed by the U.S. bankruptcy court or a bond market firm, which would be paid in full.
Rhodes ruled that Rhodes’ order would apply to Detroit’s appeal of Rhodes’ dismissal of a lawsuit against the city for its claim that retirees’ funds should get the benefit of the bankruptcy restructuring.
His order also says Rhodes’ order covers any future discussions between Detroit residents and the city about how best to handle the city’s police pension system.
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