Detroit bankruptcy
3:38 pm
Mon November 4, 2013

Orr questioned on 'sacrosanct' comment in Day 6 of Detroit bankruptcy trial

Here's the comment Detroit Emergency Manager Kevyn Orr made to a public meeting on June 10, 2013. It's on loop, in case you miss it the first go 'round:

This statement was played for the courtroom by a lawyer representing the city's pension funds. He was trying to prove that Orr misled pensioners days before proposing cuts to pensions.

The Detroit News' Chad Livengood and Robert Snell report on the exchange that followed:

“Despite the implications, I wasn’t attempting to mislead anyone,” Orr testified Monday under questioning from city attorney Greg Shumaker.

Orr’s answer caused U.S. Bankruptcy Judge Steven Rhodes to interrupt with a follow-up question.

“Excuse me one second,” the judge said. “What would you say to that retiree now?”

“I would say his rights are in bankruptcy now,” Orr told the judge. “I would say his 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 continued to deny allegations that there was no attempt to negotiate with creditors "in good faith" prior to the city's bankruptcy filing. It's a pivotal point lawyers for the city's creditors are trying to prove. If they can do it, the city might not be eligible to reorganize under the protection of federal bankruptcy laws.

Orr ended his testimony this morning around 11 a.m.

Next to the witness stand, Snyder aide Richard Baird and former state treasurer Andy Dillon.