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Detroit refuses contract for law firm to overhaul city finances

DETROIT (Reuters) - The City Council of Detroit on Tuesday rejected a contract to hire a law firm to help carry out an overhaul of the beleaguered city's finances.

In a voice vote, the council rejected the contract for Miller, Canfield, Paddock & Stone to provide legal advice and to handle litigation pertaining to implementation of the financial stability agreement.

In a deal last week between Michigan state officials and Detroit Mayor Dave Bing, the contract was stated as one of the conditions for the release of $10 million in state funds to help the city's budget.

Detroit risks running out of money by the end of the year.

(Reporting by Karen Pierog)

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