Reuters: Bankruptcy News: Harrisburg, Penn. leaders sue to block receiver

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Harrisburg, Penn. leaders sue to block receiver Jun 26th 2012, 15:58 By Mark Shade June 26 | Tue Jun 26, 2012 11:58am EDT June 26 (Reuters) - The City Council in Pennsylvania's debt-laden capital of Harrisburg sued the state on Tuesday in a bid to halt work by a receiver overseeing the city's fiscal recovery plan. The federal lawsuit challenges the state's takeover of Harrisburg, claiming that state lawmakers' approval in October of a receiver was unconstitutional. "Neither the governor nor the Republican-controlled legislature have the right to impose their will on the city of Harrisburg just because they disagree with the position of the democratically elected City Council," City Council President Wanda Williams said in a statement. Paul Rossi, an attorney who filed the suit on behalf of the City Council, said the legislature gave Pennsylvania Governor Tom Corbett unfettered powers to decide whether to put Harrisburg into receivership, which the council alleges violated due process under the U.S. Constitution. The council asked in the suit for an injunction that could stop the work of state-appointed receiver, retired U.S. Air Force Major General William Lynch. Five of the seven city council members, including Williams, joined in the suit. Also signing on as plaintiffs were City Controller Dan Miller and City Treasurer John Campbell. Three Harrisburg residents previously challenged the receivership in court, but a judge threw the case out, saying the private citizens could not sue on behalf of the city. A spokesman for Lynch did not immediately respond to a request for comment. Both he and Corbett are named as defendants in the suit. Corbett's spokesman could not immediately be reached. (Reporting by Mark Shade, writing by Hilary Russ; Editing by Gary Crosse) Link this Share this Digg this Email Reprints

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