The city of Detroit which is located in the state of Michigan is currently deteriorating structurally as reported by Thomson Reuters News and Insight in a June 3, 2013 article. As a result, the city is facing numerous lawsuits based on the â€œexposed manholes, malfunctioning traffic lights and broken sidewalks.â€
The city is currently self-insured which means that the city is financially responsible for the lawsuits that are settled and the lawsuit judgments that are rendered against it.Â It is estimated that at least seven hundred lawsuits are being brought against the city per year, that the city pays about twenty six million dollars to the injured party, and that the cityâ€™s legal fees are close to twenty two million per year. Thus, the City is paying about forty eight million dollars per year.
Due to the large number of lawsuits that are brought against the city, the city does not know what to do and it tries to settle these cases however, the settlement agreements must be supported by the cityâ€™s city council. Moreover, due to the large number of cases that are being settled, frivolous lawsuits are being brought against the city because people know that they really donâ€™t have anything to lose and the city will most likely settle their case so in the end they will gain financially. However, the city is trying to stop or reduce its financial problem, and it is also trying to avoid going bankrupt thus it appointed an emergency manager who will try to put an end to these frivolous lawsuits.
Jayson Lutzky is a lawyer with an office in the Bronx, NY with 30 years of experience. He has worked with thousands of satisfied clients and offers free in person consultations. If you are considering bankruptcy, then set up a meeting with Mr. Lutzky by calling 718-329-9500. Visit www.MyNewYorkCityLawyer.com for more information.