Ann Arbor man worried that Detroit bankruptcy could affect payment of $2 million settlement

Much attention has been given to how the Detroit bankruptcy filing will affect the city’s pension funds, debt obligations and art museum, but one class of creditors is looking to stake their claims ahead of the pack.

The Detroit News reports that plaintiffs in civil cases against the city of Detroit, including one Ann Arbor man owed more than $2 million, have filed requests with U.S. Bankruptcy Judge Steven Rhodes to allow them to lift automatic stays on their cases and pursue their claims ahead of bankruptcy proceedings.

Michael Beydoun, a 53-year-old architect from Ann Arbor, alleges in his request that the bankruptcy filing is a bid to dodge the payment he is owed after his vehicle was hit by a Detroit police officer who ran a red light while on patrol in 2009. According to the News, Beydoun’s lawyer said that the city tried to pressure Beydoun into taking a lesser settlement and threatened to appeal the case to the state Supreme Court.

Judge Rhodes has said he is contemplating creating a committee to represent civil plaintiffs against the city, an option that Beydoun’s lawyer is not enthusiastic about.

In May 2012, Beydoun took over management of a Mobil gas station on the corner of Carpenter Road and Washtenaw Avenue in Pittsfield Township.

• Read the full story from the Detroit News.

Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Get in touch with Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2