Wortheimer is going over the communication between treasur and Kevyn Orr’s office and changes to documentation to the recommendation. Wortheimer wanted to know who spoke with whom, and there was a conference call between Treasury staffers and Jones Day attorneys

Dillon: I spoke to some lawyers over the phone, what they communicated to Kevyn Orr I don’t know.

Wortheimer: [talking about Dillon’s email and reads] “no mention of grs." What is grs?

Dillon: the general retirement system. 

Wortheimer continues talking about Dillon’s email

Don’t think we are making the case in giving up so soon to reach an out of court settlement.”

Wortheimer: You believed that to be true when you wrote it on your computer July 10th?

Wortheimer shows a Dillon email that was in response to Kevyn Orr’s request for Chapter 9 where Dillon wrote, “I think there is a state court option to get retirees into a class.”

Wortheimer: Does this reflect your thinking at the time?

Dillon: Yes. That was my thought at the time I was never briefed at that time.

Wortheimer continues reading from the email with Dillon writing at the time, ‘I think we may want a take or leave it demand before we pull this trigger.”

Wortheimer: Was the trigger; Ch. 9?

Dillon: I thought that might have been beneficial.

Wortheimer: You write, 'I agreed with the recommendation but I don’t think that Orr made the case?” Was that the case in your mind?

Dillon: In the document that I read. 

Wortheimer concludes his cross up next is Sharon Levine for AFSCME.

2:15 p.m.

Levine is working on Dillon his recollections of the hiring of financial consultants, the city’s financial condition, and is moving into state revenue sharing.

Light Humor: At one point, there was an objection to a Levine question by the city. Asked and answered the attorney said. The judge said “many times.” Levine moved on.

2:40 p.m.

On the subject of the tentative give back agreements struck with the city and its unions

Dillon: It would be a bad idea to enter into a three year collective bargaining agreement with unions.

Levine: Who told you?

Dillon: Huron consulting

Levine: Is it your belief the city’s pensions are underfunded?