Michigan AFSCME Council 25 (AFL-CIO) et al v. Michigan, Governor of et al

Filing 25

ORDER RECOGNIZING Application of Automatic Stay, DENYING 11 Defendants' Motion to Dismiss Without Prejudice, and ADMINISTRATIVELY CLOSING the Case. Signed by District Judge Terrence G. Berg. (Chubb, A)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
MICHIGAN AFSCME COUNCIL 25
AFL-CIO, INC., et al.,
v.

Plaintiffs,

Case No. 13-12191

RICHARD D. SNYDER, GOVERNOR
OF THE STATE OF MICHIGAN, et al.,
Defendants.

HON. TERRENCE G. BERG
HON. PAUL J. KOMIVES
/

ORDER RECOGNIZING APPLICATION OF AUTOMATIC STAY, DENYING
DEFENDANTS’ MOTION TO DISMISS WITHOUT PREJUDICE, AND
ADMINISTRATIVELY CLOSING THE CASE
This matter is before the Court on its sua sponte review of the complaint filed
May 16, 2013. On July 25, 2013, the United States Bankruptcy Court for the
Eastern District of Michigan entered a very broad order in the Detroit bankruptcy
case that extended the Chapter 9 stay to include certain “State Entities,” including
“the Governor [and] the State Treasurer . . . .” In re City of Detroit, Mich., No. 1353846, 2013 WL 4777037 (Bankr. E.D. Mich. July 25, 2013) (Dkt. 166).
Governor Snyder and Treasurer Dillon, “State Entities” under the bankruptcy
court’s order, are named defendants in this case. Although it does not appear that
any interests of the City of Detroit bankruptcy proceedings are implicated in the
case, the plain language of the stay order would apply to this lawsuit. Further, and
importantly, Plaintiffs’ complaint includes a facial challenge to the constitutionality
of the state laws under which Emergency Managers are appointed and operate.
(Compl. ¶¶ 102–09, Prayer for Relief (3) and (6).)

In accordance with the very broad Extension Order issued by the bankruptcy
court, this Court will abide by the stay until such time as the bankruptcy court lifts
or modifies the stay to permit this case to proceed. See id.; see, e.g., United Retired
Government Employees v. Snyder, No. 13-2503, slip op. at 1–2 (6th Cir. Feb. 14,
2014) (Dkt. 25); United Retired Government Employees v. Snyder, No. 13-CV-12378,
slip op. at 1–2 (E.D. Mich. Oct. 9, 2013) (Dkt. 16); In re City of Detroit, Mich., No.
13-53846, slip op. at 1–9 (Bankr. E.D. Mich. Nov. 6, 2013) (Dkt. 1536-1).
Accordingly, it is ORDERED that the pending motion in this case, Defendants’
motion to dismiss (Dkt. 11), is DENIED WITHOUT PREJUDICE.
It is FURTHER ORDERED that proceedings in this case are STAYED until
further order of the court, and that the Clerk of the Court is DIRECTED to
administratively close this case without prejudice to the rights of any of the parties.
This closing does not constitute a dismissal or decision on the merits.
It is FURTHER ORDERED that when the bankruptcy stay is removed, or a
party obtains relief from the stay, the case may be reopened on motion of any party.
SO ORDERED.
s/Terrence G. Berg
TERRENCE G. BERG
UNITED STATES DISTRICT JUDGE
Dated: March 27, 2014

Certificate of Service
I hereby certify that this Order was electronically submitted on March 27, 2014, using the
CM/ECF system, which will send notification to each party.
By: s/A. Chubb
Case Manager
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