McKay v. City of Detroit, Michigan (In re City of Detroit)

(6th Cir. Sep. 28, 2017)

The Sixth Circuit affirms the bankruptcy court’s interpretation of the creditor’s settlement agreement with the debtor. The agreement provided that the creditor released his claims against the city and the individual officers. The plan only provided for a small percentage to be paid on the claim, but stated claims against individual officers were not discharged by the plan. The creditor argued the settlement agreement should not be held to have released claims against the individual officers, but the court finds the plain language of the agreement makes clear such claims were released. Opinion below.

Judge: Sutton

Attorney for Creditor: Eric Stempien

Attorney for Debtor: Miller Canfield Paddock & Stone, Marc N. Swanson, Ronald A. Spinner

2017-09-28 – in re city of detroit

Author: Matt Lindblom

 

 

Ochadleus v. City of Detroit, Michigan (In re City of Detroit, Michigan)

(6th Cir. Oct. 3, 2016)

The Sixth Circuit affirms the district court’s dismissal of the pensioners’ challenge to the confirmation order entered in the Chapter 9 bankruptcy case filed by the City of Detroit, Michigan. The pensioners filed the action to challenge the plan’s reduction of their benefits. The Court holds that the doctrine of equitable mootness applies. The pensioners did not obtain a stay, the plan has been substantially consummated, and many actions have been undertaken or completed under the plan. Opinion below.

Judge: Batchelder

2016-10-03-in-re-city-of-detroit

Author: Matt Lindblom