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
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
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.