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
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
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.