6th Circuit: Act Gives City Power To Modify Contracts To Avoid Bankruptcy

6th Circuit: Act Gives City Power To Modify Contracts To Avoid Bankruptcy

CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on Jan. 3 affirmed a district court ruling that the City of Flint, Mich., and its emergency manager did not violate the U.S. Constitution when it moved to modify health care benefits contracts with retired city employees because Michigan state law gave the city that power to avoid filing for bankruptcy (John Welch v. Michael Brown, No. 13-1476, 6th Cir.; 2014 U.S. App. LEXIS 131).

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