Resnick Law, P.C.

The Secret to Helping Detroit Businesses Succeed

daniella — Thu, 04 Feb 2016 04:06:44 +0000

It’s no secret that the city of Detroit has made considerable gains in attracting businesses to open here since its emergence from bankruptcy more than a year ago, but there is one nagging issue that will never allow the city to again flourish: failing schools.
With a rash of teacher “sick-outs” over the last few weeks, and Lansing’s threats to revoke teacher certifications should sick-outs continue — the governor and legislature contend sick-outs are akin to strikes, which are illegal for teachers under state law — the perpetually flailing school district is again in the news.
Rolling teacher sick-outs in the Detroit Public Schools have forced dozens of schools to close on various days. The sick-outs come amid complaints of poor pay, crowded classrooms, unsafe buildings and other issues, including mold and rodent infestations. A judge last week denied the district’s second attempt at a temporary restraining order against the sick-outs.
On Feb. 1, 2016, in response to a lawsuit filed by the teachers’ union, claiming that facilities are in severe disrepair, the school district said it is actively working to address building maintenance issues, including those that have been cited in recent city inspections.
Saddled with millions of dollars in debt, declining enrollment and continuous state-appointed emergency oversight, fixing the district is a critical component to revitalizing the city and its neighborhoods.
While rental units are being built and occupancy rates are high, those aspects of business growth will be fleeting if and when the time comes for all these young urbanites to enroll their someday children into school the choice is a district that has still failed to get its house in order.
Resnick Law’s business legal practice can help businesses in Detroit and Southeast Michigan succeed and thrive, but unless the city and state can figure out how to fix a perpetually broken Detroit Public Schools system, no amount of legal knowledge will help Detroit succeed.

5 Things To Know Defending Your Company Against Detroit’s Claw Back

daniella — Wed, 27 Jan 2016 19:53:16 +0000

In approximately two weeks, certain contractors, vendors and other service providers who are the target of the city of Detroit’s attempt to claw back remittances made shortly before it declared Chapter 9 Bankruptcy will face the deadline for responding to the city’s lawsuit alleging preferential treatment of payment.

As discussed in our previous blog posts on the subject, defendants have until February 10, 2016 to respond to preference complaints. While the response date may be extended (subject to certain limitations), our attorneys have been working diligently reaching out to as many potential litigants as possible and crafting an effective defense strategy.

Managing partner, Nate Resnick, has answered a few of the most asked questions we’ve received so far in order to help litigants make some sense of this lawsuit:

Q: How can Resnick Law help me fight the allegations made by the city in its lawsuit filing?

A: We have nearly 25 years of experience dealing with these types of cases. We are regularly in front of the same bankruptcy judges in this Bankruptcy court, and we have worked for other creditors in the City of Detroit’s Chapter 9 Municipal Bankruptcy case since it was filed in 2013. We obtained very successful results for our clients.

Q: After the city’s bankruptcy exit, how is it now possible for the city to claim that other city officials made alleged preferential treatment toward some vendors?

A: There are provisions in the Bankruptcy Code that permit bankruptcy Debtors to seek recovery of payments made within 90 days of the filing of the bankruptcy case in 2013, but only under certain circumstances. It doesn’t seem fair, but the law does provide several defenses to these preference lawsuits.

Q: Is there a way to settle the claim versus having to litigate?

A: Yes, absolutely. Cases can settle at any time, but the stronger the defense, the better likelihood for a favorable settlement for the client.

Q: Related to the previous question, is it in a defendant’s best interest to settle or go to court and fight the claim?

A: It depends on the strength of the case, defenses and the relative leverage and skill of the attorney advocating and doing the negotiating for the client.

Q: What advice would you offer potential defendants in this matter?

A: Hire an experienced and qualified bankruptcy attorney from Detroit immediately. The deadline to answer the lawsuits is coming up very soon (Feb. 10, 2016). If the client does not hire an attorney to file a response on time, a default will be entered against the client immediately for the full amount in the lawsuit.

Also, if the client is an LLC, or a Corporation, they must hire an attorney to defend the case. An LLC or a Corporation cannot represent itself under the law.

In discussing the case, Resnick summed up the position the city has forced many small vendors and contractors in by expressing his personal outrage at this lawsuit.

“It is horrific that the very contractors and vendors that helped keep Detroit afloat during its darkest days just before the bankruptcy are now being sued by the City,” he said, “for the payments they received only three months before the filing the largest municipal bankruptcy case in the history of the United States.

“Many of these companies and individuals who are now being sued after having supported the City for so long were the very same essential vendors identified by the emergency manager that were so vital to keep the lights on in the City of Detroit,” he added.

“Now their reward for their loyalty and patience is a lawsuit filed by a law firm in New York!,” Resnick said, feeling outraged. “It is no wonder that an out of state firm filed 185 lawsuits because there is no firm in the Detroit area that would be so brazen to go after the very same folks who helped the City stay afloat.”

Response to City of Detroit Claims Fast Approaching

daniella — Tue, 26 Jan 2016 00:22:03 +0000

If you or your company have been named as a defendant against the City of Detroit in its attempt to recover funds alleged to have been paid within the 90 days prior to the city’s Chapter 9 Bankruptcy filing, note that time is of the essence and your rights are in jeopardy.

The Bankruptcy practice group at Resnick Law has been diligently preparing the defense against the city’s allegations that improper payments to select contractors and vendors were made under the notion of preferential treatment, which was described in our last blog post.

According to a recent Bankruptcy Court Order, defendants have until February 10, 2016 to respond to preference complaints. While the response date may be extended subject to certain limitations, our attorneys highly recommend a response be filed on or before Feb. 10.

Resnick Law attorneys have made attempts to reach out to all known defendants in this case; however, if you are a party to this action and know of another vendor facing potential litigation, we recommend forwarding this information along.

Our Bankruptcy attorneys are at the ready to answer your questions and help you and your company prepare to defend keeping your hard earned money. As always, we will continuously update our clients and all interested parties through our blog, direct mailings, social media and other communications.

To speak with us regarding this or other concerns, please click here or call us directly at (248) 642-5400.

The District Detroit

daniella — Thu, 14 Jan 2016 04:56:47 +0000

photo from districtdetroit.com

Detroit has infamously faced decades of blight, crime and financial turmoil. Recent developments have put the city back on track to prosperity and the city is scheduled to undergo major development projects over the next couple years. At the pinnacle of these development projects is the District Detroit, an entertainment district that will connect Midtown and Downtown Detroit along Woodward Avenue.

The District Detroit will develop a series of five neighborhoods, all centered around a major venue. Each neighborhood is uniquely themed, and will offer a taste of Detroit city life that appeals to a person of any passion. These neighborhoods are:

Columbia Street Neighborhood: neighborhood encapsulating the Fox Theatre and the Fillmore.
Wildcat Corner Neighborhood: anchored by Comerica Park and Ford Field.
Woodward Square Neighborhood: to be built around the new Red Wings Arena on Woodward Ave.
Cass Park Village Neighborhood: a residential neighborhood, which furthers development between Cass Avenue and Woodward Avenue.
Colombia Park Neighborhood: a new and modern neighborhood anchored by public greenery space.

The ultimate goal of District Detroit is to transform underutilized neighborhoods into positive, creative and energetic spaces for residents, workers and guests. This project will also have a hugely positive economic impact on the city of Detroit as well. Coupled with the new hockey arena development, District Detroit is expected to spur an initial economic impact of $1.8 billion, and create thousands of construction and permanent jobs.

The District Detroit is an exciting furtherance of Detroit’s growth. We are excited to keep up with the development of District Detroit, and cannot wait to experience the District when it is complete. District Detroit and the new arena are scheduled to be complete by the summer of 2017.

To view the progress on District Detroit thus far, https://player.vimeo.com/video/138003869

For more information about District Detroit, click here: http://www.districtdetroit.com