Post by Logan on Feb 24, 2017 20:46:54 GMT -6
Detroit Mayor Duggan: Orr hid predictions on pension debt; city may sue law firm
Detroit Mayor Mike Duggan said today that former Emergency Manager Kevyn Orr kept him in the dark about calculations used to predict the city’s future pension payments.
Now, as the city realizes those payments will be many millions higher than expected, Duggan said the city is considering a lawsuit against Orr’s firm, Jones Day.
Because of the secrecy from Orr's team, the city plans to put $50 million this year into a trust fund to cover future pension payments, Duggan said.
During his annual budget presentation to City Council, Duggan said that the potential lawsuit hinges on whether Orr was obligated to keep Duggan in the loop in 2014 during talks about what the city would owe when those pension payments resume in 2024.
Read more: www.freep.com/story/news/local/michigan/detroit/2017/02/23/duggan-orr-detroit-bankruptcy-finances/98302920/
Detroit Mayor Mike Duggan said today that former Emergency Manager Kevyn Orr kept him in the dark about calculations used to predict the city’s future pension payments.
Now, as the city realizes those payments will be many millions higher than expected, Duggan said the city is considering a lawsuit against Orr’s firm, Jones Day.
Because of the secrecy from Orr's team, the city plans to put $50 million this year into a trust fund to cover future pension payments, Duggan said.
During his annual budget presentation to City Council, Duggan said that the potential lawsuit hinges on whether Orr was obligated to keep Duggan in the loop in 2014 during talks about what the city would owe when those pension payments resume in 2024.
Read more: www.freep.com/story/news/local/michigan/detroit/2017/02/23/duggan-orr-detroit-bankruptcy-finances/98302920/