Account Stated and Open Account Actions Involving Sale of Goods Subject to Michigan’s Six-Year Limitations Period
The Michigan Supreme Court recently held that account stated and open account actions are subject to the six-year limitations period provided by MCL § 600.5807(8), even when the actions are based on a debt stemming from the sale of goods. In Fisher...
Primary Issues to be Decided in the City of Detroit Chapter 9 Bankruptcy Case
On July 18, 2013, the City of Detroit filed the largest municipal bankruptcy in the history of the United States. Since the filing, the Bankruptcy Court has entered 22 orders, including orders (a) affirming that challenges to the City’s...
Court Appoints Judge Rosen as Mediator in the City of Detroit Chapter 9 Bankruptcy Case
On August 13, 2013, the Bankruptcy Court entered Mediation Order [Docket No. 322] in the City of Detroit Bankruptcy Case. The Mediation Order appoints Judge Rosen, the Chief Judge of the United States District Court for the Eastern District of...
City of Detroit Files Chapter 9 Bankruptcy
The first step in the bankruptcy process requires the City to prove that it is eligible for Chapter 9 protection. Eligibility requirements include the City of Detroit proving that it is insolvent and that it has negotiated in good faith with...
Sixth Circuit Holds Trustee and His Attorneys Protected by Quasi-Judicial Immunity
The Sixth Circuit recently held that a trustee and his attorneys were protected by quasi-judicial immunity from claims of malicious prosecution and abuse of process. In Grant, Konvalinka & Harrison, PC v. Banks (In re McKenzie), Case No. 12-5874...
Michigan Courts May Exercise Jurisdiction Over Businesses that Have Few In-State Contacts
The Michigan Court of Appeals recently held that Michigan courts may exercise jurisdiction over businesses that have engaged in a single past transaction in the state and that subsequently ceased doing business here. In Larsen Services, Inc v. Nova...
Detroit Emergency Manager's Report Declares City "Clearly Insolvent"
The City of Detroit’s Emergency Manager, Kevyn D. Orr, submitted his Financial and Operating Plan on May 12, 2013. The Plan provides that its objectives are to ensure that Detroit is able to provide governmental services essential to the public...
Sixth Circuit Recognizes Cause of Action for Aiding and Abetting Tortious Conduct under Michigan Law
The Sixth Circuit has recognized a cause of action under Michigan law for aiding and abetting tortious conduct. In El Camino Resources Ltd v. Huntington National Bank, Case No. 12-1254 (6th Cir. April 8, 2013), the court addressed a claim for aiding...
Release Given by Chapter 11 Debtor Binding on Chapter 7 Trustee
In re Managed Storage International, Inc., 2012 WL 5921723 (Bankr. Del. 2012), the Delaware Bankruptcy Court held that a release given by a debtor in connection with a sale under § 363 of the Bankruptcy Code was binding upon a subsequently...
