Michigan Court of Appeals Affirms Ruling for Counties Represented by Clark Hill in Midland Flood Dispute

The Michigan Court of Appeals affirmed a Midland Circuit Court ruling in connection with a $217 Million special assessment needed to restore and repair four high-hazard dams. Two mid-Michigan counties and their designated agency were represented by Joe Colaianne, Zach Larsen, and Lauren Burton in a legal challenge to the special assessment.

The trio of Clark Hill attorneys represented Midland and Gladwin Counties in addition to the Four Lakes Task Force in a dispute related to a catastrophic flood in May 2020. A pair of dams responsible for maintaining the water levels for Wixom Lake and Sanford Lake failed, after heavy rainfall, leading to the City of Midland and surrounding areas being declared a national disaster.

Colaianne, Larsen, and Burton have represented the Four Lakes Task Force for several years. Four Lakes has been the lead agency in the recovery and restoration of the impacted lakes, which serve more than 8,000 properties.

While Four Lakes has secured more than $200 million in state and federal grants to repair the region, the total cost to rebuild is nearly $400 million. Officials from both counties and Four Lakes established a special assessment district to fund the remaining balance.

A public hearing for the special assessment was held on January 15, 2024, and the counties approved of the assessment on Feb. 6, 2024. The special assessment was apportioned among property owners and paid out over the next 40 years.

A minority of property owners formed a nonprofit organization that took legal action to stop the special assessment by claiming they were denied due process and that the special assessments were unconstitutional.

Colaianne, Larsen, and Burton convinced the trial court and Court of Appeals that the appellants were afforded all procedural due process protections required by the Inland Lake Level Act, and the counties’ special assessment complied with all relevant statutory provisions.

“The record indicates that the process for establishing the special assessment commenced in 2021, with opportunities for public commentary and engagement beginning in 2022,” the Court of Appeals panel wrote in its opinion. “The records demonstrate that a minimum of 780 adjustments were made to the special assessment roll based on public input.”

“We’re satisfied with the court’s ruling in this case,” Colaianne said. “This litigation has delayed the special assessment district from issuing municipal bonds to fund the project and halted construction. Our client is eager to resume work on the dam restoration.”