Judge Rules on Flint Lawsuit

Court of Claims Judge Mark Boonstra allowed parts of the Flint lawsuit to go forward against the state for its decisions leading up to the Flint water crisis. This decision will allow for the merits of such a case to be argued in court for the first time.

Judge Boonstra granted the state’s motion to dismiss two of the claims in the case, but denied two others. The case, Mays v. Snyder, can now move to the discovery and deposition phase, pending a state appeal which seems highly likely. It is a class action lawsuit involving 6,000 plaintiffs that names Governor Rick Snyder, the state of Michigan, two state departments and two of the appointed emergency managers, Darnell Earley and Jerry Ambrose.

The case represents possible a major financial judgement against the state. It is unlikely the cases in federal court under the U.S. Constitution will see a financial judgement, and most of the cases in the Genesee Circuit Court target the private firms that assisted the water source switch from the Detroit system to the Flint River.

Judge Boonstra dismissed the constitutional claims that involved a state-created danger and fair and just treatment. He allowed the claim regarding “a violation of the protection afforded to an individual’s bodily integrity by the substantive component of the due process clause” to proceed as well as the claim of inverse condemnation to proceed. He also rejected the state’s contention that the plaintiffs failed to satisfy the six month statute of limitations and the argument that Mr. Ambrose and Mr. Earley were city officials and therefore subject to litigation in the Court of Claims.

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posted by PAA Online , Friday, October 28, 2016 10:45 AM
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Spanish Auto Supplier Stays

Corporacion Gestamp, an international supplier of complex structural stampings and assemblies for automobiles, plans to expand its Chelsea and Mason facilities the Michigan Economic Development Corporation announced on Wednesday.

The company received $1.575 million in Michigan Business Development Program grants from the Michigan Strategic Fund. In total, Corporacion Gestamp is investing $158 million at the Chelsea and Mason facilities, bringing 235 jobs. The company also plans to invest an additional $700,000 and create 60 new positions at its North American Headquarters in Troy. Chelsea is expected to have a new chassis assembly line, electronic coat paint line, and a press-hardening line with an integrated laser cutting cell in Mason.

Governor Rick Snyder commented Gestamp’s decision to expand in Michigan keeps improving the state as the global automotive capital and at the forefront of the next chapter in transportation. Michigan is also home to Lightweight Innovations for Tomorrow (LIFT), a company that finds ways to build high tech, safer, cost effective, and fuel efficient vehicles for Michigan based automakers and manufacturers. Michigan is home to 63 of the top 100 North American automotive suppliers with the highest concentration of research and development facilities in the nation.

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posted by PAA Online , 10:45 AM
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Energy Legislation

With the 2008 energy law being revamped in the Legislature, the question of energy choice has become a topic of conversation.

Last week, the Michigan Chamber supported a substitute version of SB 437 that includes an increased renewable energy standard of 15 percent by 2021. Electric choice advocates are not as supportive, speculating whether the bills sustain choice. Electric choice in the 2008 energy law limits 10 percent of the electric market for alternative electric suppliers or those not considered to be traditional utilities like DTE Energy and Consumers Energy. Major utilities argue alternative electric suppliers are not paying their fair share for the electric grid.

Senator Peter MacGregor (R-Rockford) intends to propose an amendment that may alleviate the tension and secure choice sustainability. The amendment will provide ratepayer protections and set up a process for the Public Service Commission (PSC) to ensure ratepayers receive the best value when new electric generation is being brought online. It additionally eliminates the language of a proposed capacity tax. The capacity tax refers to the tariff the PSC could charge under a proposed deal between the state and the Midcontinent Independent System Operator on AESs to purchase power if no contracts have been reached by other suppliers.

Senator MacGregor’s amendment has yet to be proposed. It is likely the Senate will take up the energy issues following the election.

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posted by PAA Online , 10:44 AM
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PAAdvisory Briefs

Snyder Vetoes HICA Replacement

Governor Rick Snyder has vetoed legislation that would have ended the 0.75 percent tax on health insurance claims and established a way to replace the lost revenue. Senator Ken Horn (R-Frankenmuth), lead sponsor of the bills, commented it is now up to the Snyder administration to create a new proposal. This veto marks Governor Snyder’s 54^th veto during his almost six years in office.

DEQ Files Emergency Rules

The Department of Environmental Quality filed emergency rules on Thursday following the discovery of dioxane contamination near an existing plume outside Ann Arbor and a few other areas around the state. The rules package still needs to be presented to the Joint Committee on Administrative Rules before promulgation. The water standard will then be set at 7.2 parts per billion and the residential vapor intrusion standard at 29 ppb.

Absentee Ballots Up

The number of completed absentee ballots are up compared to 2012 along with the number of applicants and ballots issued, state officials confirmed. The number of absentee ballots completed is up 36 percent, or roughly 165,000 more completed with 12 days before the election.

Appeals Court on Fetus

A fetus can be considered a victim in a ruling on Wednesday by the Court of Appeals. The case People v. Ambrose, the majority decision written by Judges Mark Boonstra and Kirsten Frank Kelly, held the law refers to “victims” and establishing a fetus as a person is unnecessary in order to consider it a victim. The case found Samuel Ambrose guilty of felonious assault after attacking his pregnant girlfriend, punching her in the abdomen, threatening her and holding her head under water. Mr. Ambrose challenged the sentence based on the law saying “threatening injury or death to between two and nine victims” with the fetus counting towards that number.

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posted by PAA Online , 10:43 AM
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