Ingham County Circuit Court Judge William Collette acted quickly
Wednesday to dismiss the lawsuit challenging the validity of the Financial
Stability Agreement, or consent agreement, entered into by the City of Detroit
and the State of Michigan.
The controversial suit, seen as the last hurdle standing between
the city and significant reforms, was brought by Detroit Corporation Counsel
Krystal Crittendon, notably without being asked to do so by either Detroit
Mayor Dave Bing or City Council. It was the question of Ms. Crittendon’s
authority in bringing the suit that drew the focus of Judge Collette and
ultimately led to the suit’s dismissal.
Ms. Crittendon filed the suit arguing the consent agreement was
invalid as the State owes the city millions of dollars for revenue sharing,
parking tickets, etc. The State countered by threatening to withhold
multi-millions in payments to the city under a complex financing deal brokered
as a portion of the consent agreement negotiations. Without payment, Detroit
would have reportedly run out of cash as early as next week.
With the dismissal of the suit, the road has been paved for City
Council to appoint their two representatives on the Financial Oversight Board,
which is scheduled to meet today.