Local 4's Rod Meloni is blogging from inside Detroit's bankruptcy trial - which is now in its 8th day.
Proceedings started late this morning. An unusually long line going into the federal bankruptcy court this morning because of the immigration and naturalization process that brings many people taking the oath to become citizens.
Former State Treasurer Andy Dillon stood in the security line about two dozen people ahead of me, in the one line that allows one person at a time into the courthouse going through the magneto/metal detector.
He was the witness to testify and he was still standing in the security line after 9 a.m.
When he was able to get up to the 7th floor and testify, he was greeted by pension fund attorney Jennifer Green.
Her questioning surrounded Dillon’s relationship with Kevyn Orr. Dillon testified he had an informal lunch just before Orr was hired as emergency manager. Green showed an email to Dillon regarding this meeting.
Green: Did you offer Mr. Orr a list of key items you wanted him to focus on as emergency manager?
Dillon: No, I have no specific memory.
Green: Were you concerned about or expecting lawsuits?
[Eliciting a chuckle] Dillon: We get sued all the time. Our experience is that emergency management brings all kind of litigation all the time.
Green: Most likely referring to PA 436?
Dillon: We had all kinds of lawsuits, open meetings act, we had 100 lawsuits.
Green: What part of the Michigan constitution gives you your understanding of how you as treasurer could not lend credit by the state to a municipality?
Dillon: It was my general understanding as broadly construed that it was not permissible under the constitution
Green attempted to introduce a memo, but was objected to and the judge did not allow the paperwork into evidence so at that point she completed her cross examination.
Up next with Dillon is Attorney Lynn Brimer: retired police personnel.
Dillon is wearing a brown suit, gold colored tie and a white shirt. He is seated in the witness stand with a pair of reading glasses folded in his hands and is leaning over to make certain he speaks into the microphone.
Brimer is asking Dillon at the details of the consent agreement with the city in 2012 and the financial consulting firms, including Miller Buckfire and Huron Consulting, regarding how the consent agreement was negotiated.
Lynn Brimer continues her cross examination of Dillon. She showed another email involving him. She wanted to know what happened surrounding the negotiation of the consent agreement and how it was formed.
Dillon: We wanted the consent agreement to survive the repeal of PA 4, so we worked very hard to come up with language that would allow it to survive a PA 4 repeal.
Brimer is now asking about an email from Miller Buckfire to Dillon regarding how to move forward with the consent agreement. It stated “The cleanest way to do all of this probably is new legislation that established the board and its powers AND includes an appropriation for."
Brimer wanted to discuss how early in the process the consideration of an emergency manager came into play.
Dillon: The model we were following is the MAC put into existence in New York, this is related to PA 4 and PA 72 but it was also regarding what statutorily we could do as it pertains to a Financial Advisory Board.
Brimer: Was the the person pushing you to do this Miller Buckfire?