A federal judge has dismissed the Detroit city employee pension systems’ legal challenge of the law that allows state-appointed Emergency Managers to take over local governments and void labor contracts.
On Friday U.S. District Judge Sean F. Cox said the issues in the case weren’t “ripe” for review because the law has not yet impacted Detroit’s pension funds, Bloomberg reports.
The pension boards argued in court papers that they would “suffer significant hardship” if the law wasn’t erased. They raised the possibility in their complaint that Detroit’s retirement systems could be seized.
“Plaintiffs have been subjected to nearly constant threats of appointment of an emergency manager and the exercise of the czar-like powers granted under the act if they do not capitulate and fully agree to all of the demands of the mayor” of Detroit, they said in a July filing.
Another challenge to the Emergency Manager law has been filed in Ingham Circuit court. Gov. Rick Snyder has asked the Michigan Supreme Court to rule on that case directly.
The state’s high court has not yet announced whether it will take up the case.