Articles Posted in Michigan Supreme Court

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In Docket No. 151800, Clam Lake Township and Haring Charter Township (the Townships) appealed the determination of the State Boundary Commission (the Commission) that an agreement entered into under the Intergovernmental Conditional Transfer of Property by Contract Act (Act 425 agreement) between the Townships was invalid. In Docket No. 153008, as the Commission proceedings in Docket No. 151800 were ongoing, TeriDee, LLC brought an action against the Townships, seeking a declaratory judgment that the Act 425 agreement was void as against public policy because it contracted away Haring’s zoning authority by obligating Haring’s zoning board to rezone pursuant to the agreement. The Act 425 agreement at issue here sought to transfer to Haring Charter Township an undeveloped parcel of roughly 241 acres of land in Clam Lake Township that was zoned for forest-recreational use. The agreement provided a description of the Townships’ desired economic development project, including numerous minimum requirements for rezoning the property. Approximately 141 acres of the land were owned by TeriDee LLC, the John F. Koetje Trust, and the Delia Koetje Trust (collectively, TeriDee), who wished to develop the land for commercial use. To achieve this goal, TeriDee petitioned the Commission to have the land annexed by the city of Cadillac. The Commission found TeriDee’s petition legally sufficient and concluded that the Townships’ Act 425 agreement was invalid because it was created solely as a means to bar the annexation and not as a means of promoting economic development. The Townships appealed the decision in the circuit court, and the court upheld the Commission’s determination, concluding that the Commission had the power to determine the validity of an Act 425 agreement. The Townships sought leave to appeal in the Court of Appeals, which the Court of Appeals denied in an unpublished order. The Michigan Supreme Court held: (1) the State Boundary Commission did not have the authority to determine the validity of the Act 425 agreement and could only find whether an agreement was "in effect"; and (2) an Act 425 agreement can include requirements that a party enact particular zoning ordinances, and the Court of Appeals erred by concluding to the contrary. TeriDee's annexation petition was preempted. Both cases were remanded to the circuit court for further proceedings. View "Clam Lake Township v. Dept. of Licensing & Reg. Affairs" on Justia Law

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Baruch SLS, Inc., a Michigan nonprofit corporation, sought exemptions from real and personal property taxes as a charitable institution under MCL 211.7o and MCL 211.9 for tax years 2010–2012. Petitioner based its request on the fact that it offered an income-based subsidy to qualifying residents of Stone Crest Assisted Living, one of its adult foster care facilities, provided those residents had made at least 24 monthly payments to petitioner. The Tax Tribunal ruled that Stone Crest was not eligible for the exemptions because petitioner did not qualify as a charitable institution under three of the six factors set forth in Wexford Med Group v City of Cadillac, 474 Mich 192 (2006). The Court of Appeals reversed with respect to two of the Wexford factors, but affirmed the denial of the exemptions on the ground that petitioner had failed to satisfy the third Wexford factor because, by limiting the availability of its income-based subsidy, petitioner offered its services on a discriminatory basis. The Michigan Supreme Court found the third factor in the Wexford test excluded only restrictions or conditions on charity that bore no reasonable relationship to a permissible charitable goal. Because the lower courts did not consider Baruch’s policies under the proper understanding of this factor, the Court vacated the Court of Appeals’ and Tax Tribunal’s opinions in part and remanded this case to the Tax Tribunal for further proceedings. View "Baruch SLS, Inc. v. Twp of Tittabawassee" on Justia Law

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Jeffrey and Carol Haksluoto filed a medical malpractice claim against Mt. Clemens Regional Medical Center, General Radiology Associates, PC, and Eli Shapiro, DO, for injuries Jeffrey sustained after he was misdiagnosed in Mt. Clemens’s emergency room. Plaintiffs mailed a notice of intent (NOI) to file a claim on December 26, 2013, the final day of the two-year statutory period of limitations. Plaintiffs filed their complaint on June 27, 2014, which was 183 days after service of the NOI. Defendants moved for summary judgment, arguing that the suit was barred by the two-year statute of limitations. The trial court denied defendants’ motion. Defendants appealed, and the Court of Appeals reversed, holding that MCR 1.108 (the rule concerning the calculation of time) was best understood to signify that the 182-day notice period began on December 27, 2013 (the day after plaintiffs served the NOI) and expired on June 26, 2014, which meant that the notice period did not commence until one day after the limitations period had expired, and therefore filing the NOI on the last day of the limitations period failed to toll the statute of limitations. The Michigan Supreme Court granted plaintiffs’ application for review, finding the trial court was correct in its calculation of time. View "Haksluoto v. Mt. Clemens Regional Med. Ctr." on Justia Law

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Defendant operated a parochial school to which plaintiff was denied admission. When plaintiff sued on the basis of disability discrimination, defendant moved for summary judgment, arguing among other things that, under the ecclesiastical abstention doctrine, the circuit court lacked subject matter jurisdiction over her claim. Central to defendant’s argument was Dlaikan v Roodbeen, 522 NW2d 719 (1994), which applied the doctrine to conclude that a circuit court had no such jurisdiction over a challenge to the admissions decisions of a parochial school. The circuit court denied defendant’s motion. The Court of Appeals, however, was convinced by defendant’s jurisdictional argument and reversed, thereby granting summary judgment in defendant’s favor. The Michigan Supreme Court disagreed with the appellate court’s determination: “[w]hile Dlaikan and some other decisions have characterized the ecclesiastical abstention doctrine as depriving civil courts of subject matter jurisdiction, it is clear from the doctrine’s origins and operation that this is not so. The ecclesiastical abstention doctrine may affect how a civil court exercises its subject matter jurisdiction over a given claim; it does not divest a court of such jurisdiction altogether. To the extent Dlaikan and other decisions are inconsistent with this understanding of the doctrine, they are overruled.” View "Winkler v. Marist Fathers of Detroit, Inc." on Justia Law

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Daniel Kemp sued his no-fault insurer, Farm Bureau General Insurance Company of Michigan, seeking personal protection insurance (PIP) benefits under the parked motor vehicle exception in MCL 500.3106(1)(b) for an injury he sustained while unloading personal items from his parked motor vehicle. Farm Bureau moved for summary disposition under MCL 2.116(C)(10) on the basis that Kemp had not established any genuine issue of material fact regarding whether he satisfied MCL 500.3106. Kemp responded by asking the trial court to deny Farm Bureau’s motion and, instead, to grant judgment to Kemp under MCR 2.116(I)(2). The trial court granted Farm Bureau's motion for summary judgment. The Michigan Supreme Court reversed, finding that Kemp satisfied the transportational function required as a matter of law, and created a genuine issue of material fact concerning whether he satisfied the parked vehicle exception in MCL 500.3106(1)(b) and the corresponding causation requirement. Therefore, the trial court erred in granting summary judgment, and the Court of Appeals erred in affirming the trial court. The matter was remanded for further proceedings. View "Kemp v. Farm Bureau Gen. Ins. Co. of Michigan" on Justia Law

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Only two sections of the Michigan no-fault act mention healthcare providers, MCL 500.3157 and MCL 500.3158, and neither of those sections confers on a healthcare provider a right to sue for reimbursement of the costs of providing medical care to an injured person. Although MCL 500.3112 allows no-fault insurers to directly pay PIP benefits to a healthcare provider for expenses incurred by an insured, MCL 500.3112 does not entitle a healthcare provider to bring a direct action against an insurer for payment of PIP benefits. Covenant Medical Center, Inc., brought suit against State Farm Mutual Automobile Insurance Company to recover payment under the no-fault act for medical services provided to State Farm’s insured, Jack Stockford, following an automobile accident in which Stockford was injured. State Farm denied payment. In the meantime, Stockford had filed suit against State Farm for no-fault benefits, including personal protection insurance (PIP) benefits. Without Covenant’s knowledge, Stockford and State Farm settled Stockford’s claim for $59,000 shortly before Covenant initiated its action against State Farm. As part of the settlement, Stockford released State Farm from liability for all allowable no-fault expenses and any claims accrued through January 10, 2013. State Farm moved for summary judgment under MCR 2.116(C)(7) (dismissal due to release) and MCR 2.116(C)(8) (failure to state a claim). The trial court granted State Farm’s motion under MCR 2.116(C)(7), explaining that Covenant’s claim was dependent on State Farm’s obligation to pay no-fault benefits to Stockford, an obligation that was extinguished by the settlement between Stockford and State Farm. View "Covenant Medical Center, Inc. v. State Farm Mutual Automobile Ins. Co." on Justia Law

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Under Michigan’s Probate Code, the Department of Health and Human Services has an affirmative duty to make reasonable efforts to reunify a family before seeking termination of parental rights. The Department also has an obligation to ensure that no qualified individual with a disability is excluded from participation in or denied the benefits of the services of the Department. Efforts at reunification cannot be reasonable under the Probate Code if the Department has failed to modify its standard procedures in ways that are reasonably necessary to accommodate a disability under the ADA. The Department petitioned to terminate the parental rights of respondent, a person with an intellectual disability. The Supreme Court determined after review of this matter that the circuit court erred by concluding the Department had made reasonable efforts at reunification because the court did not conduct a complete analysis of whether reasonable efforts were made: the court did not consider the fact that the Department had failed to provide the court-ordered support services, nor did the court consider whether, despite this failing, the Department’s efforts nonetheless complied with its statutory obligations to reasonably accommodate respondent’s disability. The Court of Appeals correctly determined that termination of respondent’s parental rights was improper without a finding of reasonable efforts. Remand was necessary for an analysis of whether the Department reasonably accommodated respondent’s disability as part of its reunification efforts in light of the fact that respondent never received the court-ordered services. View "In re Hicks/Brown" on Justia Law

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In 2009, defendant Sharea Foster, gave birth to a son, BF. Plaintiff Shae Graham alleged that he was the biological father of BF and therefore should be recognized as BF’s legal father. However, defendant has been married to her husband, Christopher Foster, since 2004. Because “a child conceived and born during a marriage is legally presumed the legitimate child of that marriage, and the mother’s husband is the child’s father as a matter of law,” Michigan law presumed that Christopher was BF’s father notwithstanding plaintiff’s assertions. Plaintiff, nonetheless, sought to establish his alleged paternity and legal fatherhood of BF. When a minor child has a presumptive father, the Revocation of Paternity Act (RPA) allows an individual to come forward under certain circumstances and allege his paternity and legal fatherhood. The Supreme Court determined that the Court of Appeals erred by prematurely adjudicating a nonparty’s anticipated defense (here, Christopher Foster). For that reason, the Supreme Court vacated the offending portions of the judgment below, while leaving in place its judgment remanding the case for further proceedings consistent with the remainder of its opinion. View "Graham v. Foster" on Justia Law

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On a snowy night, plaintiff Krystal Lowrey went with friends to defendant Woody’s Diner for drinks to celebrate St. Patrick’s Day. While exiting the diner, she fell on the stairs and injured herself. She brought this premises liability action, and the trial court granted summary disposition in defendant’s favor. The Court of Appeals subsequently reversed, concluding that defendant had failed to establish that it lacked notice of the hazardous condition alleged in the complaint, reasoning that defendant had not presented evidence of what a reasonable inspection would have entailed under the circumstances. After its review, the Michigan Supreme Court concluded that in order to obtain summary judgment under MCR 2.116(C)(10), defendant was not required to present proof that it lacked notice of the hazardous condition, but needed only to show that plaintiff presented insufficient proof to establish the notice element of her claim. The Court concluded defendant met its burden because plaintiff failed to establish a question of fact as to whether defendant had notice of the hazardous condition. Accordingly, the Court reversed the Court of Appeals regarding defendant’s notice, reinstated the trial court’s order granting summary judgment in favor of defendant on that issue, and vacated the remainder of the Court of Appeals’ opinion. View "Lowrey v. LMPS & LMPJ, Inc." on Justia Law

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Defendant, National Heritage Academies, Inc., was a company that owned and operated a number of public, independently operated schools, including Linden Charter Academy (LCA) located in Flint, Michigan. Plaintiff, Craig Hecht, was a white teacher who had been employed by defendant at LCA for approximately eight years, most recently serving as a third-grade teacher. The student body at LCA was predominantly black. This race discrimination case came about over the color of a computer table: an aide returned a brown table to plaintiff's classroom. Upon noticing her mistake, the aide asked plaintiff whether he'd prefer to have the brown table she brought, or the white table that had previously been in the room. Whether or not plaintiff's next statement in response to the computer table question was a "tasteless joke" with no racial animas ultimately lead to plaintiff's termination with defendant. Plaintiff sued under Michigan's Civil Rights Act (CRA), claiming that the employer's reason for firing him was racially motivated. The issue this case presented for the Supreme Court's review was whether the trial court erred by denying defendant’s motion for judgment notwithstanding the verdict (JNOV). After review, the Supreme Court held that the Court of Appeals did not err by affirming the trial court’s denial of defendant’s motion for JNOV on plaintiff’s claim of discrimination under the Civil Rights Act (CRA), "[t]his case turned on circumstantial evidence, on the credibility of plaintiff’s proofs that suggested there were racial reasons for his treatment and on the credibility of defendant’s nonracial justifications for firing him." The Court concluded based on the evidence presented and all the inferences that could be reasonably drawn from that evidence in favor of the jury’s liability verdict, that a reasonable jury could have concluded that defendant violated the CRA. The Court found error in the calculation of future damages and reversed the trial court on that ground. The Court remanded the case for further proceedings. View "Hecht v. National Heritage Academies, Inc." on Justia Law