Michigan Supreme Court Holds that City’s Use of Building Inspection Fees is Not Reasonably Related to Service Costs (Part 3/3 of the Opinion)

To read about the case’s factual and procedural background, as well as Part 1 of the Supreme Court’s opinion, see https://detroitbusinesslaw.com/2019/08/30/michigan-supreme-court-holds-that-citys-use-of-building-inspection-fees-is-not-reasonably-related-to-service-costs-part-1-3-of-the-opinion/.

To read about Part 2 of the Supreme Court’s opinion, see https://detroitbusinesslaw.com/2019/09/03/michigan-supreme-court-holds-that-citys-use-of-building-inspection-fees-is-not-reasonably-related-to-service-costs-part-2-3-of-the-opinion/.

In the final part of the Supreme Court’s opinion in Michigan Association of Home Builders v. City of Troy, issued July 11, 2019 (No. 156737), the Michigan Supreme Court addressed the question of whether the Plaintiffs should be considered taxpayers with standing to file suit pursuant to the Headlee Amendment. Under the Headlee Amendment, any taxpayer of the state is allowed to bring suit regarding Sections 25 through 31 of Article IX of the Michigan Constitution.

According to the complaint, Plaintiffs were nonprofit organizations incorporated in the city of Lansing. Plaintiffs alleged that their members also include taxpayers of the State and taxpayers residing and working in the City of Troy. However, after the Supreme Court first reversed and remanded the case for further proceedings, and after the trial court allowed further discovery, Plaintiffs were still unable to provide any evidence that they or their members were taxpayers of the City. For these reasons, the Supreme Court held that they could not conclude that Plaintiffs had established standing to file suit under the Headlee Amendment, and the case was remanded to allow Plaintiffs to establish representational standing.

A link to the opinion can be found here: https://law.justia.com/cases/michigan/supreme-court/2019/156737.html

This article was written by Emily Honet, Law Clerk