Detroit Files Lawsuit Against 1 of Its Insurers

July 8, 2013

Detroit has filed a lawsuit against an insurance company the city says is improperly withholding $11 million a month in casino payments and taxes.

According to The Detroit News, the suit against Syncora Guarantee Inc. was filed on July 5.

Emergency Manager Kevyn Orr says the casino revenue Syncora is holding up each month is enough to pay Detroit firefighters for two months.

A representative for Syncora declined to comment when contacted by the Detroit Free Press.

The city wants the court to prohibit Syncora from taking action that limits the city’s ability to access casino money.

Wayne County Circuit Judge Annette Berry granted Detroit’s request for a temporary restraining order stopping U.S. Bank from refusing to make payments to the city.

The judge set a July 26 hearing.

 

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Latest Comments

  • July 10, 2013 at 1:27 pm
    jw says:
    Why does an insurance company owe the city money for a casino?
  • July 10, 2013 at 10:49 am
    Tom Bruckmeyer says:
    Or now they could go to casinos in Ohio, Indiana, or Illinois. Might as well keep the money in country and in state.
  • July 9, 2013 at 4:30 pm
    Ratemaker says:
    If the Detroit casinos weren't there, the people would just cross the bridge to Windsor and gamble there, like they did before the Detroit casinos existed. At least this way t... read more
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