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No. 120410-11
| Parkwood
Limited Dividend |
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Richard
Bisio (248) 740-5698 |
| Housing Association, |
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Plaintiff-Appellee,
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| vs (Appeal
from Ct of Appeals) |
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(Wayne
-- MacDonald, J.)
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| State Housing Development Authority, |
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Thomas L. Casey |
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Defendant-Appellant.
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Carl H. von Ende (313) 963-6420 |
| ------------------------------------------------------ |
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Parkwood Limited Dividend
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| Housing Association, |
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Plaintiff-Appellee/Cross-Appellant,
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| vs (Appeal
from Ct of Appeals) |
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(Court of Claims -- Glazer, J.)
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| State Housing Development Authority, |
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Defendant-Appellant/Cross-Appellee.
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Click to view briefs in Adobe format:
Plaintiff-Appellee's Brief on Appeal>>
Defendant-Appellant's Brief on Appeal>>
Defendant-Appellant's Reply Brief>>
Background
State law establishes the Court of Claims and gives that court exclusive
jurisdiction to "hear and determine all claims and demands, liquidated
and unliquidated, ex contractu and ex delicto, against the state and
any of its departments, commissions, boards, institutions, arms or agencies."
(MCL 600.6419(1)(a)) Parkwood Limited Dividend Housing is a limited
partnership that owns and operates a multi-unit apartment complex. The
apartment complex was financed by a mortgage between the Parkwood and
the State Housing Development Authority (MSHDA) in 1973. The parties
also executed a "regulatory agreement" requiring Parkwood
to deposit funds into several reserve accounts. In 1998, Parkwood informed
MSHDA that it intended to prepay its mortgage. Parkwood asked whether
the amounts in the reserve accounts would be credited toward the amount
due under the mortgage or paid to Parkwood after satisfaction of the
mortgage. MSHDA responded, citing state law and the parties' agreements,
that it would retain the money in three of the reserve accounts as "surplus."
Parkwood did not prepay the mortgage, but sued MSHDA in Wayne County
Circuit Court, seeking a declaratory judgment on the issue of which
party would be entitled to the reserve accounts. Parkwood's complaint
did not request money damages. Wayne County Circuit Judge Kathleen I.
MacDonald dismissed the case, ruling that the Court of Claims had exclusive
subject-matter jurisdiction over the dispute. Parkwood also sued in
the Court of Claims; Court of Claims Judge Lawrence M. Glazer ruled
in MSHDA's favor on the issue of the reserve accounts. Parkwood appealed
both the circuit court and Court of Claims rulings. In an unpublished
2-1 decision, the Court of Appeals reversed. The Court of Appeals majority
held that the Court of Claims did not have subject matter jurisdiction
over the case because the dispute did not include a claim for money
damages. MSHDA appeals.
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