All discussions took place behind closed doors Monday at the Kim Nuesse Civil Service hearing.
For two and a half hours, witnesses and audience members waited while the attorneys and Judge Joseph Cirigliano staged private discussions.
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At 11:30 a.m., Cirigliano announced no one would testify in the fired police chief's case until Wednesday, and he excused the witnesses for the day.
By late Monday afternoon, the city's attorneys and K. Ronald Bailey, Nuesse's attorney, were still in discussions with each other.
At least one of those discussions centered on an agent from the Bureau of Criminal Identification and Investigation. According to several parties involved in the hearing, the agent was trying to circumvent a subpoena to testify.
But by midday, it was clear other discussion were taking place.
"That is just one of many legal issues they need to discuss," Cirigliano said after canceling the hearing.
Speculation swirled in the courtroom that "legal issues" meant the sides were discussing a possible settlement, but Cirigliano declined to give any specifics on the ongoing discussions.
Neither the city's attorneys or Bailey returned phone calls as of late Monday evening.
On Wednesday, the city will cross-examine former police Chief Tim McClung, and Bailey could call a handful of other witnesses to testify for Nuesse, including Sandusky Register managing editor Matt Westerhold, city commissioner Dave Waddington, acting Perkins police Chief Robb Parthemore and Lt. Al Matthews.
The hearing begins at 9 a.m. at the General Service Building, 1024 Cement Ave.