Is The Appointment Of An Emergency Financial Manager In Detroit Illegal?

DETROIT (WWJ) – If Governor Rick Snyder appoints an emergency financial manager, would he be breaking the law?

Community activist Robert Davis believes the appointment of an emergency financial manager for Detroit would be illegal and Monday he plans on asking the Detroit City Council to review his finding and examine the possibility of a lawsuit.

“The problem that the governor and the treasurer have is you already had a legally binding contract entitled the ‘Financial Stability Agreement,'” Davis told WWJ’s Legal Analyst Charlie Langton.

But the financial review team found that the consent agreement wasn’t working leading to the possibility of a state takeover.

Davis says the current consent agreement is still legally binding as it has not been formally terminated by the financial advisory board, the city or the state treasurer. But last week the governor said the consent agreement failed and now Detroit is in a financial crisis.

“I just hope and I pray that the city council stands strong and be a unified voice and challenge this proposal appointment of an emergency financial manager, because they are standing on sound legal ground,” said Davis.

What is the next legal step? An emergency financial manager said Langton.

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