The leaders of Bethany Christian Services thought they had reached a settlement in the federal lawsuit the organization filed last year against the state of Michigan, arguing that it had been unfairly denied state contracts because it requires employees to affirm its statement of faith.

An Oct. 30 exchange of emails could have given that impression.

An attorney for the Grand Rapids-based social services agency sent a settlement proposal. An attorney for the state responded with a “very gently modified counterproposal.”

Bethany Christian’s attorney accepted it. Both sides agreed to inform U.S. District Court for the Western District of Michigan that they’d reached an agreement and to call off a hearing scheduled for the following day.

“Thank you for your collegiality and cooperation,” A

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