Detroit Bankruptcy Case – Judge Chastises Attorneys for Claiming Mediator Bias

In the Detroit bankruptcy case, one of the creditors claimed that the mediators – one of whom is the Chief US District Judge for the Eastern District of Michigan – were biased in favor of some philanthropic creditors.  According to this article the creditors claimed:

The plain truth is that the mediators in this case acted improperly by orchestrating a settlement that alienates the city’s most valuable assets for the sole benefit of one creditor group.

 

Yowza !!  Now that’s a charge.  According to the article, here’s what Judge Steven Rhodes’ order says in response.

[Judge Rosen’s ruling] added that the bond insurance company’s “highly personal attack” on Rosen was legally and factually unwarranted, unprofessional and unjust….. The court finds that the allegations concerning the mediators … are scandalous and defamatory.

Now that’s a slap from the bench.  Can’t wait to see the order itself and if there any issues from the mediation go up on appeal.

Hat tip – Stacie Strong via the list serv

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