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Judge Denies Request To Revisit Consent Deal Suit

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LANSING (WWJ/AP) – A judge has declined to reconsider an earlier ruling that dismissed a lawsuit challenging a financial stability agreement between Detroit Mayor Dave Bing and the state of Michigan.

Detroit Corporation Counsel Krystal Crittendon had asked Ingham County Circuit Judge William Collette to take another look at the ruling he made last month.

Collette denied her motion Tuesday. He ruled on June 13 that Crittendon didn’t receive permission to sue.

Crittendon said the consent deal with the state violated the city’s charter based on $220 million in revenue sharing and other items that she says Michigan owes Detroit.

Gov. Rick Snyder has denied that claim.

Councilwoman Saunteel Jenkins, who voted for the consent agreement, said she doesn’t think Crittendon should appeal.

“I want us to get a definitive answer on the consent agreement, but we need to move forward,” Jenkins said. “I’m in favor of us moving forward to get the city’s financing in order.”

City Council may still decide to go directly to a 3rd Circuit Court Judge to get clarification on the new charter and whether the city’s law department can act without the mayor or council’s approval on alleged charter violations.

Mayor Bing and state officials have said Crittendon’s suit threatened current revenue sharing payments aimed at helping Detroit pay its bills.

He released the following statement on Wednesday:

“I continue to be disappointed in Corporate Counsel’s effort to derail the Financial Stability Agreement with this unnecessary litigation.

The city’s financing continues to be stalled by legal challenges of the FSA, impeding our progress to fiscally stabilize the city.

Corporation Counsel’s actions have cost the city money – as of June 27 the city’s interest rate on its $80 million bond has increased from 2.8% to 6.25 %, increasing the city’s borrowing cost by an additional $10,000 per day – and further jeopardizing the city’s revenue-sharing payments from the state.

I want to thank Judge William Collette for ruling quickly on this motion of reconsideration.”

(TM and © Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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