Justia Michigan Supreme Court Opinion Summaries

In the first case, Kent County foreclosed on the homes of Matthew Schafer and Harry and Lilly Hucklebury for unpaid taxes. The properties were sold at auction in 2017, and the county retained the surplus proceeds beyond the owed taxes. Following the Michigan Supreme Court's 2020 decision in Rafaeli, LLC v Oakland Co, which held that retaining surplus proceeds from tax-foreclosure sales is an unconstitutional taking, the Schafer plaintiffs filed a lawsuit seeking those proceeds. The Kent Circuit Court denied the county's motion to dismiss, ruling that Rafaeli applied retroactively. The Court of Appeals affirmed this decision.In the second case, the state of Michigan, acting as the foreclosing governmental unit (FGU) for Shiawassee County, foreclosed on property owned by Lynette Hathon and Amy Jo Denkins in 2018. The state retained the surplus proceeds from the sale. The Hathon plaintiffs filed a class action lawsuit in the Court of Claims, which certified the class and denied the state's motion for summary disposition. After Rafaeli, the plaintiffs moved for summary disposition, and the state moved to revoke class certification. The Court of Claims granted the state's motion to revoke class certification but later recertified an amended class. The Court of Appeals affirmed the Court of Claims' decisions.The Michigan Supreme Court held that Rafaeli applies retroactively to claims not yet final as of July 17, 2020. The court also ruled that MCL 211.78t, which provides a procedure for processing claims under Rafaeli, applies retroactively, while the new two-year limitations period in MCL 211.78l applies prospectively. Claims that arose before December 22, 2020, but expired between that date and the court's decision must be allowed to proceed if filed within a reasonable time. The court affirmed the Court of Appeals' decision in Schafer and remanded the case for further proceedings. In Hathon, the court vacated the Court of Appeals' judgment affirming class recertification and remanded the case to the Court of Claims for reconsideration. View "Schafer v. Kent County" on Justia Law

Peter Deacon, individually and on behalf of all others similarly situated, brought an action in the United States District Court for the Northern District of California against Pandora Media, Inc., which operated an Internet-based music-streaming program. In relevant part, Deacon claimed that Pandora violation of the Michigan preservation of personal privacy act (PPPA) by publically disclosing personal information concerning his music preferences. The federal district court ruled in favor of defendant, and under MCR 7.305(B), the United States Court of Appeals for the Ninth Circuit certified a question of Michigan law to the Michigan Supreme Court: "Has Deacon stated a claim against Pandora for violation of the VRPA by adequately alleging that Pandora is [in] the business of 'renting' or 'lending' sound recordings, and that he is a 'customer' of Pandora because he 'rents' or 'borrows' sound recordings from Pandora? " Having heard oral argument and considered the issues involved, the Michigan Supreme Court granted the Ninth Circuit’s request to answer its question. However, the Michigan Court limited the question to whether Deacon could be characterized under the PPPA as a "customer" of Pandora because at the relevant time he was a person who "rent[ed]" or "borrow[ed]" sound recordings from defendant. The Supreme Court concluded that Deacon was not such a "customer." View "In re Certified Question (Deacon v. Pandora)" on Justia Law

Before the Supreme Court, three actions: two class actions and a qui tam action brought in the name of the state of Michigan involving allegations that multiple pharmacies systematically violated MCL 333.17755(2) by improperly retaining savings that should have been passed on to customers when dispensing generic drugs in the place of their brand-name equivalents. Furthermore, plaintiffs argued that violations of section 17755(2) necessarily resulted in violations of the Health Care False Claim Act (HCFCA) and the Medicaid False Claim Act (MFCA) when pharmacists submitted reimbursement claims to the state for Medicaid payments that they were not entitled to receive. "The inferences and assumptions required to implicate defendants [were] simply too tenuous for plaintiffs' claims to survive summary judgment. Moreover, plaintiffs' overbroad approach of identifying all transactions in which a generic drug was dispensed fail[ed] to hone in on the only relevant transactions - those in which a generic drug was dispensed in place of a brand-name drug." The Supreme Court reversed the Court of Appeals’ construction of MCL 333.17755(2) and its holding that plaintiffs' pleadings were sufficient to survive summary judgment, vacated the remainder of the Court of Appeals' judgment, and reinstated the trial court's grant of summary judgment to defendants. View "Michigan ex rel Gurganus v. CVS Caremark Corp." on Justia Law