Bankruptcy Judge Steven Rhodes said that it was an easy legal decision to authorize pension reductions in Detroit's bankruptcy but that he felt still compassion for the city's retirees and citizens who suffered because of the city's financial collapse and water shutoffs, the Detroit Free Press reported today. Judge Rhodes, who presided over the largest municipal bankruptcy in U.S. history from start to finish, said that he invited citizens to speak in his courtroom on multiple occasions during the case because he wanted to hear their input. "I was genuinely interested in what their concerns were and how I could possibly deal with them, if I could,” Judge Rhodes said. Still, his groundbreaking ruling on Dec. 3, 2013 giving Detroit emergency manager Kevyn Orr the authority to reduce the city's pension obligations was prudent, the judge said. Michigan's Constitution describes public pensions as a contractual obligation that cannot be cut, but federal bankruptcy law allows contracts to be severed. "I have to say that from a legal perspective, it was not a particularly difficult decision," he said.
