Detroit’s Financial Takeover Under Scrutiny, In Court

State oversight of the struggling city’s finances being challenged

A lawyer for Detroit has filed a complaint against the state, alleging illegality of an April agreement to takeover the city’s finances.

The complaint was been filed in Michigan’s Court of Claims by Detroit Corporation Counsel Krystal Crittendon on Monday, Reuters reports.

Crittendon argues the city’s agreement with Michigan Treasurer Andy Dillon was not valid under state law because the state “was in default to the city.”

In other words, the state supposedly owes Detroit lots of money.

[ALSO READ: Detroit Wants Help From Obama]

From the Reuters story:

The lawsuit lists more than $230 million purportedly owed Detroit by Michigan, including $224 million in revenue sharing, $4.7 million in unpaid water and sewer services at the Michigan Fairgrounds and $1,225 in parking tickets on state vehicles.

"The Law Department has exercised its right to challenge the consent agreement," said Detroit Mayor Dave Bing in a statement. "Whatever the legal outcome, we will abide by it. But I'm not interested in getting into any legal battle that will distract us from executing my fiscal stability plan."

To read more about the city’s legal challenge, click here.

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