"He was fully aware that the pensions were protected by the state constitution and he had no indication to set aside or modify the state constitution," Taylor said of Orr.
Steven Kreisberg, the American Federation of State, County and Municipal Employees international director of collective bargaining and healthcare policy, also testified Monday afternoon that concessions agreed to last year by the city and a coalition of unions, though never implemented, showed that Detroit could have negotiated with the unions to avoid bankruptcy.
Kreisberg is scheduled for questioning Tuesday morning by Detroit's attorneys. Rich Baird, a top aide to Michigan Governor Rick Snyder, and former Michigan Treasurer Andy Dillon are also expected to testify on Tuesday.
Closing arguments in the case are expected to begin Thursday, and Rhodes is not expected to make a decision on eligibility until later this month at the earliest. Michigan Governor Rick Snyder testified last week, a rare instance of a sitting governor testifying in a court proceeding. [ID: nL1N0II1HH]
PENSION RIGHTS 'SACROSANCT'?
During the morning session, emergency manager Orr testified that he did not mean to mislead city retirees when he said during a June 10 public meeting that pension rights were "sacrosanct" under Michigan's constitution.
"I wasn't attempting to mislead anyone. I was trying to say we understood these issues around pensions," Orr said.
"What would you say to that retiree now about his rights?" asked U.S. Bankruptcy Judge Steven Rhodes, who is overseeing the case.
"I would say that his rights are in bankruptcy now," Orr said. "I'd say those rights are subject to the supremacy clause of the U.S. Constitution."
"That's a bit different than sacrosanct, isn't it?" Rhodes replied.
Orr, who wrapped up four days of testimony on Monday, has repeatedly argued that pension benefits must be diminished as part of Detroit's financial restructuring as U.S. bankruptcy law trumps the Michigan Constitution, which protects public pension benefits from being slashed.
But when another objecting attorney tried to ask Orr about the supremacy clause, Rhodes interrupted, saying, "We've had enough testimony on the supremacy clause. It's not really within the scope of this trial."
Orr has said he plans to stay in office until next autumn.
Detroit residents will head to the polls on Tuesday to elect a new mayor. [ID: nL1N0IM05H]
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