VOICE OF DETROIT: The city's independent newspaper, unbossed and unbought

DAREA members disembark from bus in Cincinnati June 15, 2016. In center is DAREA President Bill Davis, to his right is DAREA VP Cecily McClellan, to his left is retiree Ezza Brandon. They were allowed to wear their “Hands off my Pension” T-shirts in the 6th Circuit courtroom as arguments on bankruptcy appeals were heard. The bus was full, with over 40 retirees.

Detroit bankruptcy “Grand Theft” is not a done deal

6th Circuit Judges appeared generally favorable to retiree attorneys’ arguments

DAREA may return Aug. 4 for oral arguments on Phillips v. Snyder, which challenges Public Act 435, Michigan’s “Emergency Manager law”

 By Diane Bukowski, VOD editor, City of Detroit retiree

 June 27, 2016

DAREA members show their fighting spirit on the bus. The ride took a little over 4 hours, taking off from the parking lot of the Dearborn Public Library.

Cincinnati, Ohio – City of Detroit retirees are doggedly pursuing the battle to overturn the largest municipal bankruptcy in U.S. history, carried out in the largest Black-majority city in the country in 2014. On June 15, a busload of Detroit Active and Retired Employee Association (DAREA) members traveled to Cincinnati to hear oral arguments at the Sixth Circuit Court of Appeals in five cases challenging the bankruptcy.

Impoverished by pension, annuity, and health care cuts that have led to a wave of similar cuts across the U.S., and angered that their city has been stripped of virtually all of its public assets, they said they wanted to be there to let the judges know, in the words of DAREA’s slogan, “We fight because we’re right!”

“We definitely made a major impact at the court,” DAREA president Bill Davis told VOD. “We packed the courtroom so thoroughly they had to bring out extra chairs for our people, and there were even a couple of us sitting on the floor. Many people wore our ‘Hands Off Our Pensions’ T-shirts in court.”

Demonstration during Detroit bankruptcy hearings.

Davis said DAREA will likely return to Cincinnati Aug. 5, when the Sixth Circuit will hear the appeal of a lawsuit challenging the constitutionality of Michigan’s Public Act 436, known as Phillips v. Snyder. Without that act, better known as the “emergency manager law,” the state takeover of most of Michigan’s Black-majority cities, the declaration of Detroit’s bankruptcy by its Emergency Manager Kevyn Orr, and the lead poisoning of the city of Flint its Emergency Manager cut ties with the Detroit Water and Sewerage Department would not have happened.

That lawsuit was re-filed after U.S. District Judge George Caram Steeh denied all but one argument in the suit, the fact that PA 436 has led to racial discrimination. See

“We’re willing to go and fight anywhere for democracy in Michigan,” Davis said.

6th Circuit Judge Alice Batchelder

Judge Karen Nelson Moore

Judge David McKeague

Sixth Circuit Judges Alice Batchelder, Karen Nelson Moore, and David McKeague are considering both oral arguments and briefs in the retiree cases.

The appeals were filed by five entities, the Ochadleus Group of Retirees, 146 strong, represented by attorney/retiree Jamie Fields (#15-2194), retiree William Davis, representing hundreds of DAREA retirees pro se (#15-2379),  attorney/retiree John Quinn (#15-2337), attorney/retirees Dennis Taubitz and Irma Industrious, (15-2353) and retiree Lucinda Darrah pro se (15-2371).

The groups involved have filled in a breach on the battle lines left by City of Detroit unions and retirement systems, which earlier withdrew their appeals of U.S. Bankruptcy Judge Steven Rhodes’ ruling that Detroit was eligible for bankruptcy and could cut pensions in violation of state law, the first time any judge in the U.S. had so ruled. They eventually agreed to adopt the disastrous bankruptcy plan of confirmation, with 70 percent of its cuts to creditors borne by retirees.

Ezza Brandon (r) tells Michigan AFSCME Council 25 Pres. Al Garrett it should not have withdrawn appeal of bankrupty eligibility decision, during protest July 31, 2014.

The unions and retirement systems ignored a scathing report by former Goldman Sachs banker Wallace Turbeville of DEMOS, which said Detroit was not bankrupt, that it only had a cash shortfall of $147 million, easily remedied. That report also said the city’s retirement systems, as independent bodies, should never have been included in the bankruptcy case. (See link below story.)

In withdrawing their appeal of Rhodes’ decision on bankruptcy eligibility, the unions and pension systems also wrote off powerful amicus briefs filed by the CalPERS, the largest pension system in the country representing California’s public employees, the American Association of Retired Persons (AARP), and others.

“I think their withdrawal had a major impact on city retirees,” Davis said. “Had they gone through with their appeals, we wouldn’t have to be going through this using resources raised by just a few thousand retirees. Orr said we could not appeal the bankruptcy plan, but we have proven that is crazy. Of course you can appeal. How can you go into bankruptcy and lose all the city’s assets without being able to go to a higher court? This is nothing but a grand theft, and I believe we will ultimately find that a criminal conspiracy in violation of RICO [the federal Racketeer Influenced and Corrupt Organizations Act] was carried out by Orr, Snyder, and [former State Treasurer] Andy Dillon was carried out.”

Detroit retirees and supporters protest at Crain’s Detroit luncheon honoring Bankruptcy Judge Steven Rhodes and Emergency Manager Kevyn Orr, on Feb. 25, 2015.

U.S. District Court Judge Bernard Friedman earlier denied all five appeals, based largely on a judicial doctrine known as “equitable mootness.” In layman’s terms, that means, “We’ve done it, it can’t be changed because that would cause financial chaos, and it’s too late to for you to do anything about it.”

The retirees in the five appeals do not agree. They argue that the bankruptcy plan should be considered on constitutional grounds by a higher court, and that it can be altered to exclude cuts to retirees by remanding it back to the bankruptcy court to make it comply with state constitution language protecting public pensions. DAREA argued in its brief that even PA 436 compels emergency managers to honor that the pension protection clause.

DAREA said in its brief, “A total of $5.5 billion, or 78 percent of the total bankruptcy relief, comes off the backs of city retirees.” Later it added, “The City of Detroit may have to find some alternative funds to make up the difference in the funding necessary to restore pensioners to their full payments. But that funding will be relatively small and can be provided without disrupting the plan of adjustment. The city can seek alternative sources of funding for blight removal. As has been done in cities, states and the federal government, the City of Detroit could go after the major banks, whose predatory lending policies led to the destruction of neighborhoods throughout Detroit, to fund blight removal, rather than taking funds out of the general fund.”

The court heard oral arguments on only three cases, those brought by actual attorneys, Jamie Fields on behalf of the Ochadleus appellants, John Quinn, and Dennis Taubitz. But it is reviewing all five appellant briefs before it issues its ruling. (See links to briefs below.)

Jamie Fields speaks about 6th Circuit appeals of bankruptcy at DAREA meeting.

Fields, whose group largely represents police and fire retirees, said in part, “The District Court’s finding of equitable mootness . . . .allows the bankruptcy court to exercise final judicial power that it cannot constitutionally wield. . . . The bankruptcy court did not have the constitutional authority to issue a final, non-appealable ruling on what Art. 9 Sec. 24 of the Michigan Constitution meant.”

Sec. 24 says, “The accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractual obligation thereof which shall not be diminished or impaired thereby.”

In supplemental briefs, both Fields and DAREA cited an Illinois Supreme Court ruling rejecting cuts to Illinois state employees based on almost identical language in that state’s constitution.

“The people of Illinois give voice to their sovereign authority through the Illinois Constitution,” Illinois Justice Lloyd Kormeier wrote for that court. . . . “the Illinois Constitution . . . expressly provides that the benefits of membership in a public retirement system ‘shall not be diminished or impaired.’”

Fields added, “Our argument is that Annuity Savings Fund (ASF) matter had no business in bankruptcy court period; it is not related to the bankruptcy at all.”

Public workers demonstrate as Illinois Supreme Court decides on pension cuts in 2015. It said they could not be cut, based on Illinois State Constitution protections.

Attorney John Quinn argued likewise regarding the ASF, which comprised the major part of his appeal. Both said the city had never even filed a “proof of claim” with regard to ASF cuts.

Detroit retirees who participated in the voluntary ASF plan put either 3, 5, 0r 7 percent of their paychecks into the ASF, in addition to their pension contributions, with no matching funds from the city. Those who retired in 2003 and afterwards were hit with huge cuts to their accumulated annuities under the bankruptcy, in addition to a 4.5 percent cut to their pensions and loss of health care benefits.

The city contended the ASF’s paid a set 7.9 percent rate of return even in years when the pension funds had lower returns. They cited as particular examples the years of 2008 and 2009, during which rates of return dropped drastically due to the global economic crash caused by Wall Street’s predatory lending practices.

DAREA protested with opponents of tax foreclosures in Detroit June 8, 2015.

Fields said that the bankruptcy court may have had authority to hear concerns about employees’ pensions, but its decision on those matters those would still be appealable under two landmark Supreme Court decisions, Stern v. Marshall, and Wellness International Network, Ltd., et al. v. Sharif. The second decision said bankruptcy courts could make final decisions on major matters, but only if both parties, creditor and debtor, agreed.

“If you take away [higher court] review on the merits . . .you are taking away the [limited] jurisdiction or authority the Congress gave the bankruptcy courts, . . .making equitable mootness a per se rule,” Fields said.

Attorney John Quinn argued likewise regarding the ASF, which comprised the major part of his appeal. Both he and Fields said the city had never even filed a “proof of claim” with regard to the ASF cuts.

Below is video explaining difference between Article I and Article III Courts. In USSC Stern v. Marshall, 564 U.S. 462 (2011),  the Court held that a bankruptcy court, as a non-Article III court (i.e. courts without full judicial independence) lacked constitutional authority under Article III of the United States Constitution to enter a final judgment on a state law counterclaim that is not resolved in the process of ruling on a creditor’s proof of claim.

Quinn pointed out, “The court is well aware that this is very important case. This is the largest municipal bankruptcy in history, and will have a major impact on the development of Chapter 9 law for some time to come. It is imperative that the issues involved be considered by an Article III court.”

Article III Courts are federal courts given full judicial authority under the U.S. Constitution, while bankruptcy courts are Article I courts, at the lowest level, and are given only limited authority.

One of many protests which took place during Detroit bankruptcy proceedings.

Quinn said, “Section1123A4 of the Bankruptcy Code requires that you get the same treatment in terms of percentages of all creditors in a particular class. The ASF recoupment applies only to some creditors in Class 11. The majority [of retirees] are getting only a 4.5 percent pension cut, but people subject to ASF recoupment are getting a 20 percent cut.”

He argued that nobody should have the 20 percent cut unless they agreed to it individually or the Detroit General Retirement System successfully litigated a claim against its members.

Marc Swanson of Miller, Canfield and Smith

Arguing for the City of Detroit was Attorney Marc N. Swanson of the firm Miller, Canfield, Paddock and Stone, which played a large role in getting Detroit under emergency management, although the Jones Day law firm was viewed as the major actor in the bankruptcy case.

“This is a textbook case for the application of the doctrine of equitable mootness,” Swanson said. “No stay was obtained no stay was diligently pursued. This plan has been substantially consummated. The relief requested will cost the city $816 million in outside funding [A/K/A “The Grand Bargain}, burden the city with more than $3 billion in additional debt and plunge the city back into financial chaos, devastating its residents and returning them to an “inhumane and intolerable” situation as Judge Rhodes found.”

Sixth Circuit Judge Karen Nelson Moore conducted extensive questioning of Swanson with regard to the issue of “equitable mootness” and whether the appellants would have had to ask either the District Court or the Sixth Circuit to stay implementation of the Eighth Amended Plan of Adjustment.

“This assumes the doctrine of equitable mootness applies to Chapter 9 bankruptcies,” Moore said. “The cases in which this court has adopted equitable mootness are all Chapter 11. Don’t we have to have some kind of statutory basis or are you saying this is completely a judicial doctrine with no mooring in the bankruptcy statutes?”

DAREA members sign first bankruptcy appeal in Jan. 2015.

Swanson claimed that there is no statutory basis for equitable mootness in either Chapter 7, Chapter 9, or Chapter 11 cases, and therefore it is a matter of judicial decision. However, Moore countered by citing two statutes in the bankruptcy code that apply to Chapters 7 and 11.

She also noted, “Given the Supreme Court’s recent decisions that are telling courts don’t refuse to exercise their jurisdictions, shouldn’t we examine carefully the doctrine of equitable mootness in Chapter 9 when we don’t have any Sixth Circuit chapter 9 cases?”

Judge McKeague asked Swanson, “Why would equitable mootness apply to Chapter 9 cases if the bankruptcy court is not authorized to order the sale of city assets?”

McKeague thereby touched on a prime difference between Chapter 9 and the other bankruptcy chapters.

The Great Lakes Water Authority, an unelected regional body, took over the revenue and most assets of the Detroit Water and Sewerage Department under the Detroit bankruptcy decision, despite City Charter guarantees that a vote of the people was required.

According to a summary of Chapter 9 on the U.S. Supreme Court website, Section 904 of the Bankruptcy Code limits the power of the bankruptcy court to “interfere with – (1) any of the political or governmental powers of the debtor; (2) any of the property or revenues of the debtor; or (3) the debtor’s use or enjoyment of any income-producing property” unless the debtor consents or the plan so provides. . . In addition, the court . . . cannot convert the case to a liquidation proceeding.”

In the case of the Detroit bankruptcy, Emergency Manager Kevyn Orr authorized the sale, (misnamed a “lease”) of virtually all of Detroit’s assets, including the revenues of the $6 billion Detroit Water and Sewerage Department to the Great Lakes Water Authority, and the conversion of the multi-billion dollar Detroit Institute of Arts collection to a bank trust no longer under control of the Detroit City Council.

Moore and McKeague also questioned Swanson’s insistence that the appellants must have requested a “stay” of implementation of the bankruptcy plan in order to prevail.

Detroit bankruptcy protest

“Another problem is that doctrine of equitable mootness means that there is no Article III court that ever considers any of these issues, that it is entirely up to an Art I bankruptcy court to decide how a city’s bankruptcy should be resolved,” Moore said.

Swanson countered that “the appellants contributed to that. They chose not to pursue a stay in the District Court, or in this court, chose not to ask the court for an expedited hearing, or request an interlocutory review of the bankruptcy court’s denial.”

McKeague countered, “[Attorney] Fields says it doesn’t matter whether stay pursued—it’s whether it was done.”

Swanson again stressed the problems with rewinding the Plan of Confirmation, saying, “Granting the appellants’ demands would leave city without a viable plan and force the dismissal of the case. The city would have to clawback $50 million in cash, $910 million in bonds to creditors, refund $220 million to the to the state, and somehow reverse its irrevocable transfer of the art collection to a charitable trust. It would again face race to the court lawsuits and crushing debt.”

Many bankruptcy opponents demanded complete cancellation of Detroit’s debt to the banks, blaming them for the city’s crisis.

Moore countered, “The points you’ve raised are very serious. They would guide an Article III court in equity in deciding what the appropriate remedy for appellants’ asserted wrong would be. There are serious factors about the amount of things that have happened already.”

With regard to Detroit’s “crushing burden of debt,” VOD earlier published an analysis of the city’s debt pre and post-bankruptcy, which found that Detroit’s outstanding debt is now 300 percent greater than it was before the bankruptcy, largely due to the issuance of new bonds to pay off its corporate creditors.

VOD wrote on March 1, 2015, “The Detroit Financial Review Commission (DFRC) published figures Feb. 16 that show the city’s total general fund long-term debt (LTD) from 2015-44 is now $3,008,162,089. According to the city’s last available Comprehensive Annual Financial Report (CAFR) of 2013, the general fund LTD then was $1,003,937,000.”

The Detroit Active and Retired Employees Association’s next general membership meeting is Wed. July 6, 2016, at 5:30 p.m., St. Matthews and St. Josephs Church, Woodward at Holbrook.

FUNDRAISING: To donate to DAREA’s LEGAL DEFENSE FUND, click on  http://www.gofundme.com/pensiondefensefund. Or checks can be made payable to the Detroit Active and Retired Employees Association (DAREA), at P.O. Box 3724, Highland Park, Michigan 48203.

“Hands off my Pension” T-shirts are available for $10 each. DAREA baseball caps are available for $25 each. The fundraising committee will continue to sponsor events to cover legal fees and other meetings. DAREA has pledged to go all the way to the U.S. Supreme Court if necessary.

WEEKLY MEETINGS:  To receive notices of meetings, updates on the appeal and events information please provide your email address and phone numbers via email at Detroit2700plus@gmail.com or call DAREA at 313-649-7018.            

DAREA general membership meeting.

Related Documents:

http://voiceofdetroit.net/wp-content/uploads/Demos-Detroit-bankruptcy-report-highlighted-1.pdf

http://voiceofdetroit.net/wp-content/uploads/DAREA-Sixth-Circuit-Appeal-brief-12-28-2015-1.pdf

http://voiceofdetroit.net/wp-content/uploads/Fields-Sixth-Circuit-appeal-brief.pdf

http://voiceofdetroit.net/wp-content/uploads/Quinn-brief-6th-Circuit.pdf

http://voiceofdetroit.net/wp-content/uploads/Taubitz-Industrious-6th-Circuit-brief.pdf

http://voiceofdetroit.net/wp-content/uploads/Darrah-brief-6th-Circuit.pdf

http://voiceofdetroit.net/wp-content/uploads/Pontiac-retirees-health-care-6th-Circuit.pdf

http://voiceofdetroit.net/wp-content/uploads/Phillips-et-al-renewal-brief-2016.pdf

Related stories:

http://voiceofdetroit.net/2015/03/02/detroit-long-term-debt-rises-300-in-bankruptcy-retirees-fight-back-with-protest-court-appeals/

http://voiceofdetroit.net/2015/02/21/rhodes-says-detroits-unique-racial-composition-led-to-bankruptcy-ignores-cops-fraud/

http://voiceofdetroit.net/2015/02/18/a-tale-of-two-elections-in-michigan-its-all-black-and-white/

http://voiceofdetroit.net/2015/02/03/retirees-carry-on-the-battle-for-detroit-appealing-bankruptcy-to-higher-court/

http://voiceofdetroit.net/2015/01/23/detroit-workers-retirees-filing-briefs-in-8-appeals-of-citys-bankruptcy-plan/

http://voiceofdetroit.net/2015/01/12/detroit-retirees-announce-federal-appeal-of-bankruptcy-call-for-massive-support/

http://voiceofdetroit.net/2015/01/07/appeal-of-detroit-bankruptcy-accepted-in-u-s-district-court-press-conf-thurs-jan-8-10-am/

http://voiceofdetroit.net/2014/12/14/leaving-bankruptcy-detroit-takes-on-1-28-billion-of-new-debt/

http://voiceofdetroit.net/2014/11/20/judge-denies-all-but-pa-436-lawsuit-equal-protection-claim-after-detroit-bankruptcy-over/

http://voiceofdetroit.net/2014/11/15/detroit-bankruptcy-plan-genocide-in-usas-largest-black-majority-city-rich-get-95-9-poor-get-13-5/

http://voiceofdetroit.net/2014/10/28/bankruptcy-did-little-to-stabilize-detroit-municipal-market-advisors/

http://voiceofdetroit.net/2014/10/21/why-the-poor-are-paying-for-detroits-bankruptcy/

http://voiceofdetroit.net/2014/10/17/detroit-bankruptcy-creditor-fgic-to-get-joe-louis-arena-billions-based-on-fraudulent-poc-deal/

http://voiceofdetroit.net/2014/10/16/detroit-retirees-officials-blast-bankruptcy-plan-em-at-last-minute-hearing/

http://voiceofdetroit.net/2014/09/10/detroit-bankruptcy-great-lakes-water-authority-to-steal-largest-asset-of-largest-u-s-black-city-4/

http://voiceofdetroit.net/2014/09/06/racist-bankruptcy-plan-hearing-sanctions-theft-of-detroit/

Related from other sources:

http://www.bondbuyer.com/news/regionalnews/standard-and-poors-gives-detroit-one-investment-grade-rating-1068987-1.html

http://www.publicsectorinc.org/2014/02/detroit-pension-borrowings-what-a-tangled-web/

http://www.demos.org/blog/3/10/14/detroit%E2%80%99s-bankruptcy-laboratory-study-corruption-municipal-finance

 U.S. Supreme Court ruled in favor of U.S. banks, vulture hedge funds

Hedge funds raping Puerto Rico also attacking Detroit, Argentina

Movement on to cancel Puerto Rico’s debt to banks

By Lawrence Hurley

Videos: Brave New Films (photos, videos not part of Reuters story)

Jun 13, 2016

The Philadelphia-Camden Boricua Committee demonstrated Dec. 2, 2015 in front of the UBS Financial Services office in Philadelphia, part of a national appeal by the New York Call to Action on Puerto Rico to demand the cancellation of Puerto Rico’s debt and expose the criminal role of the banks and financial institutions that impose brutal austerity measures on the residents of the island. See

WASHINGTON  —  The Supreme Court on Monday refused to revive a Puerto Rico debt-restructuring law, putting the U.S. territory at risk of a messy default unless Congress this month passes legislation to help the Caribbean island survive its crippling fiscal crisis.

The justices ruled 5-2 that Puerto Rico’s 2014 statute, which would have let it cut billions of dollars in debt at public utilities over creditor objections, conflicted with federal bankruptcy law. The justices left in place a 2015 appeals court ruling invalidating the law, called the Recovery Act.

Passage of legislation now advancing in the U.S. Congress is likely the only remaining option to restructure Puerto Rico’s debt in a bid to avoid a default in the U.S. territory of about 3.5 million people that is burdened by a $70 billion debt load it has said it cannot pay.

The U.S. House of Representatives last Thursday overwhelmingly passed legislation creating a federal control board to help Puerto Rico cope with its debt, and sent the bill to the Senate for consideration. The White House has urged the Senate to act promptly so President Barack Obama can sign the bill into law ahead of a looming July 1 deadline for Puerto Rico to make a $1.9 billion debt payment.

But the Senate’s Republican leaders have not yet revealed their plans for dealing with the legislation.

The proposed oversight board would be tasked with working with investors on restructuring Puerto Rico’s debt and would have the authority to push the island into a bankruptcy-like court process in which it could restructure debt without the agreement of creditors.

Puerto Rico does not have Chapter 9 bankruptcy protection, unlike the 50 U.S. states. Puerto Rico’s governor, Alejandro Garcia Padilla, while supporting the bill generally, has expressed reservations about the broad powers it would give the oversight board.

Justice Clarence Thomas, writing for the Supreme Court, said Puerto Rico is not considered a U.S. state in one part of bankruptcy law, meaning it cannot authorize its municipal agencies to restructure debt. Justices Sonia Sotomayor and Ruth Bader Ginsburg dissented.

Puerto Rico, also hit by a 45 percent poverty rate and a shrinking population, faces economic calamity without measures that either change its laws or involve an agreement with creditors, which include U.S. hedge funds.

In 1984, Congress passed legislation that prohibited Puerto Rico, as a U.S. territory and not a state, from using laws that let states put struggling municipalities into bankruptcy.

Members of labor unions last year marched past the capitol in San Juan, Puerto Rico against an austerity plan to help the island’s debt crisis.

The reinstatement of the Puerto Rico law could have threatened a hard-fought, consensual restructuring at power authority PREPA under which creditors holding most of the utility’s $8.3 billion in debt agreed to take 15 percent reductions in payouts.

The Recovery Act might have allowed Puerto Rico to scrap that deal and instead put PREPA into bankruptcy, where it could impose deeper cuts and bind holdout creditors.

Two U.S. lower court decisions found the Recovery Act invalid after PREPA creditors sued. The Supreme Court heard arguments in Puerto Rico’s appeal on March 22.

“We are grateful for the Supreme Court’s careful consideration of the case, and are pleased that we now can put this litigation behind us,” said Matthew McGill, an attorney for one group of creditors.

The price on Puerto Rico’s benchmark 2035 General Obligation bond gyrated in the wake of the court’s decision. 74514LE86=MSRB

‘REAL WORLD CONSEQUENCES’

Puerto Rico’s governor signed an emergency bill on April 6 allowing the government to halt payments on its debt, throwing into doubt broader restructuring plans to stave off a financial collapse.

“Preemption cases may seem like abstract discussions of the appropriate balance between states and federal power,” Sotomayor wrote in dissent. “But they have real world consequences. Finding preemption here means that a government is left powerless with no legal process to help its 3.5 million citizens.”

U.S. Supreme Court Justice Sonia Sotomayor.

Sotomayor, whose parents were born in Puerto Rico and moved to New York before she was born, said Puerto Ricans “should not have to wait for possible congressional action to avert the consequences of unreliable electricity, transportation and safe water.”

Height Securities analyst Daniel Hanson said the ruling should be read in concert with a separate Supreme Court decision last week holding that Puerto Rico is not a separate sovereign entity from the United States for the purposes of bringing criminal charges.

The two rulings show that “Puerto Rico’s ultimate source of authority is the U.S. Congress, and the power to overrule what Congress has ordained – including in the Puerto Rico constitution – is non-existent,” Hanson wrote.

Puerto Rico’s governor Alejandro Garcia Padilla addresses the legislature about a billion-dollar cut in public spending and his new economic initiatives, in San Juan in this April 29, 2014 file photo. REUTERS/Ana Martinez-Santiago/Files

That could make it harder for Puerto Rico’s governor to make good on his threat to default on debt backed by Puerto Rico’s constitution in the name of maintaining government services, Hanson added.

Only seven justices considered the case because Justice Samuel Alito recused himself and Justice Antonin Scalia, who died in February, has not yet been replaced.

(Reporting by Lawrence Hurley; Additional reporting by Richard Cowan in Washington, Daniel Bases in New York and Nick Brown in San Juan; Editing by Will Dunham)

Related stories:

http://www.workers.org/2015/12/09/cancel-puerto-ricos-debt/#.V2gjKs_2bIU

http://www.reuters.com/article/us-usa-puertorico-governor-idUSKBN0TX2HD20151214

http://voiceofdetroit.net/2016/05/27/sanders-pushes-dems-to-reject-puerto-rico-debt-deal-engineered-by-banks-which-destroyed-detroit/

http://voiceofdetroit.net/2014/07/04/vowing-to-paralyze-this-island-puerto-rico-unions-call-general-strike-against-austerity/

http://voiceofdetroit.net/2014/06/11/puerto-rico-unions-threaten-strike-against-austerity-budget-jones-day-law-firm-involved/

http://voiceofdetroit.net/2014/11/15/detroit-bankruptcy-plan-genocide-in-usas-largest-black-majority-city-rich-get-95-9-poor-get-13-5/

To download copy of flier, click on http://voiceofdetroit.net/wp-content/uploads/WAYNE-COUNTY-GENERAL-ASSEMBLY.pdf

For active links to internet addresses listed:

http://www.waynecountyassembly.com

waynecounty.assembly@gmail.com

Facebook.com/wayne.assembly

“I guess when I can finally hug Davontae I will know it is real. I haven’t touched or hugged him for 8 years.”—Mother Taminko Sanford-Tilmon

 “Kym Worthy has known for years of the real statements coming from the confessed hit man”—Bill Proctor 

Vincent Smothers confessed to Detroit Police two weeks after Davontae was sentenced; Sgt. Ira Todd was demoted for insisting on Sanford’s innocence

Worthy press conference held Thurs. June 9: falsely blames child’s lawyers for not challenging guilty plea, producing experts to testify to state of mind

Sanford family’s press conference Thurs. June 9, 2 p.m. at 13560 E. McNichols, Detroit

By Diane Bukowski

June 8, 2016, updated June 9, 2016

After 9 long years, Davontae Sanford can finally smile at his victory.

DETROIT – In a stunning turn of events that exposed the guilt of all who kept an innocent Davontae Sanford locked up since the age of 14, Wayne County Circuit Court Judge Brian Sullivan vacated Sanford’s 37-90 year sentence for four killings on Runyon Street in 2oo7, and ordered his immediate release during a hearing June 7.

He should be home in his family’s arms today, away from the brutal prison life he endured, which included constant harassment and torture by guards.

The Detroit Police Department, Wayne County Prosecutor Kym Worthy, and Judge Sullivan knew of self-admitted hit man Vincent Smothers’ detailed confession to the murders two weeks after Davontae was sentenced on April 4, 2008, but led what amounted to a criminal cover-up. In a perfect world, they would now be charged with obstruction of justice and jailed themselves.

Sanford’s mother, Taminko Sanford-Tilmon, her husband Jermaine Tilmon, and Sanford’s siblings led the excruciating battle to extract their son and brother from “the belly of the beast,” for the next nine years without pause.

Taminko Sanford-Tilmon speaks at well-covered 2012 rally for Davontae, demanding Kym Worthy drop charges; family surrounds her.

“There were days and times I never thought my son would ever see daylight again, my darkest moments, his birthday, or just because I would crawl in a corner on many days and didn’t want to come out,” Sanford-Tilmon wrote on Facebook.

“But God!!! [kept] giving me the strength to fight n God Blessed us with people that wanted to support n fight n love Davontae like he was theirs. I’m blessed, numb, overwhelmed and full of joy and nervous all at the same time. It doesn’t seem real due to all the bumps we hit in this case. I guess when I can finally hug Davontae I will know it is real. I haven’t touched or hugged him in eight years. If you’re going through something just know God is able. Your presence support and love has truly blessed us. Dinner will be coming but first my job is to protect my son, alone with his family and his true supporters. Davontae is our main force and priority. He will be with us tomorrow.”

In video below, Sanford-Tilmon speaks out during press conference sponsored in 2015 by two Innocence Clinics seeking to free Davontae.

Former Channel 7 News reporter Bill Proctor covered the case in its early years, even opening his own Innocence Clinic.

“We revealed the misconduct of the Detroit Police Department way back when this happened,” Proctor told Channel 7 reporter Simon Chayket in the video at the top of this story.

Prosecutor Kym Worthy

Judge Brian Sullivan

“And the fact of the matter is the prosecutor’s office, Kym Worthy, has known for years of the real statements coming from the confessed hit man, in fact she structured out a deal for him to essentially send him off to prison without including this case,” Proctor said.

“She has known for years. Finally Davontae Sanford, his mother, his siblings, are all going to get justice, but they have known for all these years that the wrong person was in prison and that the right man had confessed. Vincent Smothers had a lot more credibility for these killings than anyone else on this planet.”

An appeals court ruled Sept. 26, 2013 that Smothers must be allowed to testify at post-conviction hearings in front of Sullivan, along with experts on coerced confessions, the evident lynchpin in Sullivan’s decision to free the young man. Sullivan had repeatedly refused to allow his testimony during earlier hearings where Sanford was represented by Attorney Kim McGinnis of the State Appellate Defender’s Office.

Davontae Sanford family and supporters after appeals court hearing August 6, 2013. Mother Taminko Sanford Tilmon and stepfather Jermaine Tilmon at right; paralegal Roberto Guzman in front; Detroit News reporter Oralandar Brand Williams at left taking photos.jpg

“He’s not guilty. He didn’t do it,” Smothers told AP reporter Ed White in a prison interview. “I understand what prison life is like; it’s miserable. To be here and be innocent – I don’t know what it’s like. He’s a kid, and I hate for him to do the kind of time they’re giving him.”

Smothers’ account of the murders matched forensic and ballistics evidence at the scene perfectly, while Davontae’s confession as a child of 14, naming three young friends who were never tried, was grossly inaccurate.

Self-described hit man Vincent Smothers also campaigned for Davontae’s freedom, at risk to himself.

Prosecutor Worthy’s office issued a statement, saying in part, “Today, the Wayne County Prosecutor’s Office and the defense attempted to file a stipulated order to dismiss all charges against Sanford, without prejudice. However, Wayne County Third Circuit Court Judge Brian Sullivan signed an order vacating Sanford’s conviction and sentence, and directing that the Michigan Department of Corrections immediately release Sanford on his own recognizance. The court ordered the People to file a Motion to Dismiss the Case, which the court will review.”

A motion to dismiss charges WITHOUT prejudice means they can be brought back again when and if the Prosecutor desires. Worthy said SHE decided to call in the Michigan State Police to re-investigate the case, nine years after the fact, after Sanford’s attorneys from two Innocence Clinics filed a motion for relief from judgment in 2015.

“One year later, on May 20, 2016, the State Police submitted a report of their investigation,” the release says. “Included in that report is a recorded interview in which former Deputy Chief James Tolbert contradicts his sworn testimony that Davontae Sanford drew the entire diagram of the crime scene, including the location of the victims’ bodies, while being questioned by the police.  This called into question Tolbert’s credibility in the case.”

The statement says she will hold a press conference tomorrow, Thurs. June 9, at 10 a.m. in the 12^th floor conference room of the Wayne County Prosecutor’s Office, located in the Frank Murphy Hall of Justice, 1441 St. Antoine Street, Detroit, Michigan.

Kevin DeMott is a mentally ill inmate with bipolar and personality disorders. Corrections officers at the Ionia Maximum Correctional Facility chained DeMott to his bed and secured a padded helmet to his head after he refused to stop banging his head against the wall, which is stained with blood. This is the prison where Davontae was held after the age of 15, at level 5./ Michigan Department of Corrections

Roberto Guzman, a paralegal who worked on behalf of the family, told VOD, “Worthy is not confessing wrongdoing . She knew about it all the time but she claims surprise now.”

He added that Sanford needs to “file a Section 183 claim for wrongful conviction, a claim for legal malpractice. They took away this child’s life. He’s going to need intense psychotherapy when he gets out. His damages are in the millions of dollars. He goes in there as a child and comes out as a man. Keep in mind the post-traumatic stress syndrome he will be suffering. It was a torture chamber in there for him. He was beaten up for breakfast, lunch and dinner by the guards.”

Taminko Sanford-Tilmon said Davontae and his family, with their attorneys, will hold a press conference at 2 p.m. Thursday, June 9 at a church in the Matrix Human Center, located at 13560 E. McNichols, in Detroit.

Above is video of Kym Worthy’s press conference filmed by Fox 2 News. This reporter was denied access to the press conference for having arrived 5 minutes late and then being told she would have to wait until an escort came down from the prosecutor’s office. It is clear from the video that the press conference started late, so there was no reason to deny this reporter access.

VOD’s commentary on the content of this press conference will be published later. Meanwhile, the stories VOD has done over the years, including coverage of the post-conviction hearings in front of Brian Sullivan and the Court of Appeals hearing, are listed below. They contradict many of Worthy’s allegations at the press conference.–Diane Bukowski

Related stories:

http://voiceofdetroit.net/2016/06/04/child-killers-corrupt-and-killer-cops-and-kym-worthy/

http://voiceofdetroit.net/2016/03/09/prayer-brunch-to-free-davontae-sanford-sat-march-12-falsely-convicted-as-child-of-14-now-23/

http://voiceofdetroit.net/2015/04/19/davontae-sanford-moves-giant-step-closer-to-freedom-as-innocence-clinics-come-to-his-aid/

http://voiceofdetroit.net/2013/12/23/mother-of-davontae-sanford-supporters-decry-pros-worthys-continued-persecution-of-her-son/

http://voiceofdetroit.net/2013/10/22/families-demand-no-police-state-under-detroit-chief-craig-top-cops/

http://voiceofdetroit.net/2013/09/27/victory-for-davontae-sanford-in-appeal-of-conviction-at-age-14-for-four-murders/

http://voiceofdetroit.net/2013/08/10/davontae-sanfords-family-hopeful-after-appeals-court-hearing/

http://voiceofdetroit.net/2013/08/04/free-davontae-sanford-appeals-court-hearing-tues-aug-6-2013-10-a-m/

http://voiceofdetroit.net/2012/04/28/free-davontae-and-charles-justice-for-aiyana-and-trayvon/

http://voiceofdetroit.net/2012/04/24/sanfordjones-rally-receives-broad-coverage-hit-man-signs-affidavit-to-free-davontae/

http://voiceofdetroit.net/2012/04/24/stop-the-war-on-our-youth-davontae-aiyana-and-dad-trayvon-kenny-snodgrass-production/

http://voiceofdetroit.net/2012/03/25/davontae-innocent-being-tortured-in-prison-judge-refuses-to-allow-real-killers-confession/

http://voiceofdetroit.net/2012/02/07/ap-newsbreak-detroit-hit-man-says-davontae-sanford-is-innocent-will-testify/

http://voiceofdetroit.net/2011/08/02/witness-detroit-hit-man-vincent-smothers-said-convicted-teen-davontae-sanford-had-no-role-in-slayings/

http://voiceofdetroit.net/2011/07/19/davontae-sanford%e2%80%99s-innocence-v-detroit-police-and-prosecutors%e2%80%99-reputations/

http://voiceofdetroit.net/2011/05/02/free-davontae-sanford-frank-murphy-court-tues-may-10-9-a-m-to-12-noon/

http://voiceofdetroit.net/2011/01/15/free-davontae-sanford/

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