Jones Day Scolded by Bankruptcy Judge in Detroit Case

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The law firm representing the city of Detroit in its bankruptcy case, Jones Day, was scolded by a federal judge this week, according to The Wall Street Journal. The firm was scolded for mistakenly circulating confidential documents involving private negotiations between the city’s creditors and Detroit.

On Monday, U.S. Bankruptcy Judge Steven Rhodes scolded Jones Day’s Detroit bankruptcy attorney, Geoff Irwin.

  

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“This is a major problem and needs to be solved,” Judge Rhodes said.

The scolding occurred during a hearing to resolve discovery arguments between the creditors of the city and Detroit.

Irwin said that Jones Day mistakenly mailed documents to creditors on May 6 that had information about closed-door mediation negotiations.

According to The Detroit News, Irwin said that it credited the mistake to an error committed by the document review team at the law firm.

Also on Monday, Oakland County objected to the debt-cutting plan of the city, claiming that the plan puts the Detroit Water and Sewerage Department, consumers and the city at risk.

“It does so by, among other things, stripping necessary funds from the water and sewer system at the expense of a healthy DWSD,” Oakland County attorney Joseph Fischer wrote.

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