Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
DIA Urges Detroit to Stay Away from Art Collection
Author: Joel R. Glucksman
Date: September 6, 2013
Key Contacts
Back
Several creditors and pension groups have teamed up to challenge the constitutionality of the Detroit bankruptcy filing. Although the Detroit Institute of Art has opted out of the objections, it released a statement discouraging the city from including its multimillion-dollar art collection in the bankruptcy proceedings.
Prior to its petition for protection under Chapter 9 of the bankruptcy law, the appointed emergency manager Kevyn Orr had requested a valuation of the DIA’s art collection, fueling fears that it might be used as leverage in the bankruptcy proceedings. However, the DIA has taken the position that, although it supports the city’s decision to seek out municipal bankruptcy, the collection belongs to the State of Michigan, rather than to the city itself, and should therefore not be included in any financial negotiations with Detroit’s creditors.
“We remain committed to our position that the Detroit Institute of Arts and the City of Detroit hold the DIA’s collection in trust for the public, and we stand by our charge to preserve and protect the cultural heritage of all Michigan residents,” said DIA director Graham Beal.
The museum also endorsed Orr’s decision to place the city into bankruptcy, noting that it may be the only viable option given the severity of Detroit’s finances. However, the DIA directly appealed to Orr in its statement, noting that it “continues to encourage him not to undercut those goals by jeopardizing Detroit’s most important cultural institution and the economic, educational, and other significant benefits it brings to the city and the region.”
The museum’s city-owned collection still remains vulnerable to sale, but Orr has not yet announced a formal proposal to include the art in his reorganization plan for the city’s finances. Should the city be permitted to move forward with its bankruptcy proceedings and include the museum’s extensive collection in its plan, the DIA said it will challenge the move in court.
- Business Bankruptcy
- Chapter 9
- Chapter 9 Bankruptcy
- Detroit Bankruptcy
- Filing Bankruptcy
- Municipal Bankruptcy
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Author: Dan Brecher
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
Author: Bryce S. Robins
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.