Judge questions how activist Robert Davis will pay $40,000 judgment [Detroit Free Press] - Insurance News | InsuranceNewsNet

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July 19, 2013 Newswires
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Judge questions how activist Robert Davis will pay $40,000 judgment [Detroit Free Press]

Tammy Stables Battaglia, Detroit Free Press
By Tammy Stables Battaglia, Detroit Free Press
McClatchy-Tribune Information Services

July 19--Highland Park Schools board member and union activist Robert Davis may have to divulge his assets, his income and how he is going to pay a $40,000 judgment won by the Highland Park Board of Education and the district's emergency financial manager, a Wayne County judge ruled today.

But that's only if the insurance company for the school district isn't forced to pay out on his behalf first, Wayne County Circuit Judge Kathleen MacDonald said.

"I'm more concerned all this may be unnecessary if there's an insurance policy that covers his actions," MacDonald said during today's court hearing with two lawyers -- one for Davis and one for the board. Davis was not present. MacDonald scheduled a creditor's hearing for Sept. 27, with an understanding with the lawyers that it may be canceled.

Davis, an employee of the public-sector union the American Federation of State, County and Municipal Employees, has filed a series of lawsuits challenging state intervention under the emergency manager law in both Highland Park and Detroit, mostly without success. In the lawsuit currently in front of MacDonald, Davis was deemed to have filed the lawsuit frivolously. He was then ordered to pay $40,356.60 for the school district and EM's attorney fees and court costs. He has yet to pay, although the district seized a $1,000 bond Davis deposited as part of the suit.

His lawyer, Andrew Paterson Jr., said today after the hearing that Davis feels actions by the state -- particularly the slow shearing of revenue streams to Michigan cities and school boards -- have led to the autocratic rule by EMs and budgetary problems for local communities.

"He seems to be the only one in the state of Michigan that seems to care that public officials follow the law," Peterson said. "Any of the suits that he brought could have been brought by the city council, the mayor -- school districts all over the state could have brought these lawsuits. And he seems to be the only one that has the gumption to get up and do it."

His lawsuit seeking to overturn the appointment of Detroit emergency manager Kevyn Orr is pending. That suit alleges the state's Emergency Loan Board violated the Michigan Open Meetings Act when it appointed Orr in March. Davis also alleges Gov. Rick Snyder unlawfully got involved in a selection process that is the exclusive responsibility of the loan board.

Davis is awaiting trial in federal court on allegations he stole money while a board member at Highland Park Schools. He was indicted April 5 on charges that he pocketed more than $125,000 from the cash-strapped school district by submitting false invoices for advertising between 2004 and 2010. He denies the allegations, claiming the suit is politically motivated.

___

(c)2013 the Detroit Free Press

Visit the Detroit Free Press at www.freep.com

Distributed by MCT Information Services

Wordcount:  477

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