Rhode Island Superior Court Upholds Constitutionality of Receivership Law

Today, Superior Court Associate Justice Michael A. Silverstein upheld the constitutionality of a law that permitted a receiver to take over the powers of government in Central Falls and to remove Milad Shabo from the Central Falls Housing Authority and replace him with Edna Poulin.

Mark Pfeiffer, retired Associate Justice of the RI Superior Court and the state-appointed receiver for the City of Central Falls , today applauded Superior Court decisions upholding the constitutionality of the law establishing receivership for Central Falls and affirming the receiver’s authority to make municipal appointments.

“We are pleased with the rulings, which allow us to move forward in our efforts to restore fiscal stability to the City of Central Falls ,” said Pfeiffer.   “The court’s decisions make it clear that the receivership process is constitutional and in the best interests of both Central Falls and the State of Rhode Island .”

Acting Director of Revenue, Rosemary Booth Gallogly stated, “I am pleased that the Superior Court’s decision will allow us to continue with our work to assist the City of Central Falls , and other communities in need of assistance in the future”.

“While the legislation doesn’t prevent fiscal distress, the law was drafted to provide for early intervention and to prevent actions by one community which could have a negative impact on all municipalities in Rhode Island ,” Booth Gallogly added.

Read the decision here.

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