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Bankruptcy leaves Detroit police abuse claims unpaid
Source: Associated Press
Bankruptcy leaves Detroit police abuse claims unpaid
By ED WHITE
December 29, 2018
DETROIT (AP) — Detroit could have been on the hook for millions of dollars in a lawsuit alleging police abuse. Lawyers, however, are closing the case after eight years, acknowledging that the claims of possibly 200,000 people are practically worthless.
The reason? Detroit’s 2013 bankruptcy.
The 2010 lawsuit, which described poor conditions in holding cells and excessive detentions, was in progress when Detroit became the largest U.S. city to seek protection from creditors. The city eventually emerged with a clean balance sheet, a robust downtown and a national buzz among millennials .
But a new, flush Detroit doesn’t mean a windfall for people who won the class-action case.
Instead, they would need to get in line like other creditors because the lawsuit was pending during the bankruptcy. Attorneys worked on a settlement with the city but concluded it wasn’t practical: A $1,000 recovery per person could be worth as little as $40 — and paid over many years.
-snip-
By ED WHITE
December 29, 2018
DETROIT (AP) — Detroit could have been on the hook for millions of dollars in a lawsuit alleging police abuse. Lawyers, however, are closing the case after eight years, acknowledging that the claims of possibly 200,000 people are practically worthless.
The reason? Detroit’s 2013 bankruptcy.
The 2010 lawsuit, which described poor conditions in holding cells and excessive detentions, was in progress when Detroit became the largest U.S. city to seek protection from creditors. The city eventually emerged with a clean balance sheet, a robust downtown and a national buzz among millennials .
But a new, flush Detroit doesn’t mean a windfall for people who won the class-action case.
Instead, they would need to get in line like other creditors because the lawsuit was pending during the bankruptcy. Attorneys worked on a settlement with the city but concluded it wasn’t practical: A $1,000 recovery per person could be worth as little as $40 — and paid over many years.
-snip-
Read more: https://apnews.com/f9bd733f80614752b370d95858b59f67