Motion to strike testimony denied.
10:45 AM --
Applicable law. So just to be clear Ken Buckfire will be allowed to continue to testify as an expert.
The Judge is still discussing his reasoning and he also allowed Mr. Molhatra’s testimony as well.
In his ruling, Judge Rhodes said “a taxi driver would not be allowed to testify, but that does not mean that Buckfire and Malhotra cannot testify."
They had extensive personal knowledge of the city’s affairs that they acquired of their consulting work and it formed the basis of their conclusions. Perhaps more fundamental than that is a key consideration… what both Mr. Molhatra did and what Mr. Buckfire did are a substantial part of the facts and circumstances that led to the filing of this case and are therefore highly relevant to the issues of eligibility of the City of Detroit’s bankruptcy before this court at this time.
Accordingly, not only what they did, and why they did what they did, through the documents is in the court’s view, entirely admissible.”
10:50 AM --
Ken Buckfire is on the stand and is now undergoing cross examination by an objector union attorney.
Buckfire testified he has only met former Michigan Treasurer Andy Dillon once or twice and he has met Gov. Rick Snyder a few more times and knows him better.
In a conversation with Snyder, Buckfire said: “I told him that bankruptcy should be avoided at all costs… but it is usable as a last resort.”
The union attorney has been probing Buckfire’s involvement with the June 14th presentation of the city’s turnaround plan.
He called it “a collaborative effort to determine the treatment of unsecured creditors.”
Attorney to Buckfire: “Who made the recommendation to the emergency manager regarding making retirees unsecured creditors?”
Buckfire: “It was a function of the insolvency and lack of cash. Because the claims of the pension were so large and there was no way to pay it they became unsecured creditors.”
Attorney: “Who made the recommendation?
Buckfire: “It was a function of the mathematics, I am not sure any one person made it.”
Attorney: “It was so self evident no one had to say it?”
Buckfire: “I didn’t have to, the mathematics showed that was the result.”
Attorney: “What do you recall as the first discussion of reduction of pension benefits?”
Buckfire: “I don’t recall.”
Attorney:”Did it ever happen?”
Buckfire: “ don’t recall.”
They moved on.