By Traci R. Gentilozzi
The Daily Record Newswire
DETROIT — 2013 presented a wide range of legal news in Michigan. New leadership and layoffs at the 36th District Court. The lightning-fast relocation of the Court of Claims. Judicial misconduct charges hit new levels. Business courts in full swing. A Supreme Court justice goes to jail. Controversial new court rules. A law school twice in court.
Here are some of the most popular legal topics and stories of 2013.
1. 36TH DISTRICT COURT CRISIS
The National Center for State Courts reported in May that Detroit’s 36th District Court is in a financial and operational crisis. So the Michigan Supreme Court appointed Court of Appeals Judge Michael J. Talbot as “special judicial administrator” to help get the court back on track. Talbot took steps to cut spending, including giving pink slips to about 80 employees, and implemented new revenue-raising initiatives, like an out-county collections program. Then in July, the Supreme Court ousted Judge Kenneth J. King as the court’s chief, later naming Judge Nancy M. Blount to the position. Questions also arose about whether the 36th District might be dissolved entirely, but the Supreme Court refuted the speculation. To date, the court continues to operate with Talbot at the helm.
2. COURT OF CLAIMS RELOCATES
For two weeks in the fall, Michigan lawyers had one thing in common: outrage over Senate Bill 652. The bill aimed to move the Court of Claims out of Ingham County Circuit Court and into the Michigan Court of Appeals. The measure passed the Senate and headed to the House in a matter of days. On Nov. 5, lawyers and judges packed a House committee hearing, voicing their opposition to the bill, citing numerous practical and constitutional concerns. But despite the outcry, the committee approved the legislation and the full House quickly passed it as well. The measure was signed into law as Public Act 164 of 2013 on Nov. 12. The next day, the Republican-controlled Michigan Supreme Court appointed four Court of Appeals judges to hear Court of Claims cases. Trailer legislation, House Bill 5156, was then introduced to address concerns about the right to jury trials. HB 5156 sailed through the Legislature and was presented to the Governor for signing on Dec. 16. Meanwhile, concerns linger with the Court of Claims move, including its constitutionality.
3. MCCREE MISCONDUCT
Judicial misconduct seemed to reach a new level this year in the case of Wayne County Circuit Judge Wade H. McCree. Not just because it involved accusations of an illicit affair, sex and lies — fodder good enough for a soap opera — but also because the recommended six-year suspension was unprecedented. The Judicial Tenure Commission filed its complaint in March, alleging McCree had an affair with a woman in a case before him but failed to recuse himself. The commission said McCree discussed cases with her, had sexual relations with her in his chambers, lied to the JTC and falsely reported a felony to the county prosecutor. A judge determined that McCree engaged in a “gross dereliction of judicial duties” and the JTC asked the Michigan Supreme Court to suspend McCree for six years. As reported in “McCree to high court: JTC ‘manufactured’ charges,” the case landed in front of the Supreme Court, where McCree’s attorney argued the recommended discipline is too harsh and the judge did not lie. McCree remains suspended without pay while awaiting the high court’s decision.
4. A JUSTICE GOES TO JAIL
Michigan Supreme Court Justice Diane M. Hathaway quit the high court in January amid allegations that she had committed fraud in the short sale of her Grosse Pointe Park home. Her abrupt retirement was triggered by the Judicial Tenure Commission’s filing a formal misconduct complaint against her. But Hathaway had bigger problems than the JTC: She ended up pleading guilty to federal charges of mortgage fraud and was sentenced to federal prison for one year and one day. She began serving her jail time in August.
5. STATEWIDE E-FILING
House Bill 4064 was introduced in February as enabling legislation for the Michigan Supreme Court’s statewide e-filing plan. The bill stalled in March, due to constitutional concerns. Meanwhile, the Supreme Court forged ahead with its e-filing plan, drafting new court rules and standards. In September, the high court discussed the proposed rules and standards at a public administrative hearing. Critics told the court the rules and the legislation were unconstitutional because e-filing fees are an illegal tax and the public’s ability to access documents would be unfairly limited. After stakeholders got together and discussed the proposal, a substitute for HB 4064 was introduced. The revised version of HB 4064 was presented to the Governor for signing on Dec. 12. In the meantime, the Supreme Court has not yet acted on the new court rules and standards.
6. NEW BUSINESS COURTS
Michigan circuit courts with three or more judges got down to business in 2013. A new law required the courts to have special business dockets up and running by July 1 for cases where the amount in controversy is more than $25,000. To help guide the business courts, the Michigan Supreme Court adopted an administrative order setting standards, and also amended various court rules to provide a way to identify business court cases and for the publication of business court opinions. Judges tapped for the new courts pledged to resolve the disputes quickly, effectively and efficiently.
7. JUDICIAL DISCIPLINE
The Judicial Tenure Commission kept busy in 2013, handling numerous cases of judicial misconduct. Some of the most notable cases included Wayne County Circuit Judge Deborah Ross Adams, whom the JTC wanted suspended for 180 days — but the Michigan Supreme Court instead removed her from the bench. Hudsonville District Court Judge Kenneth Post got a recommended 30-day suspension and a public censure for jailing an attorney who would not let his client answer certain questions. The commission recently asked that Wayne County Circuit Judge Bruce U. Morrow be suspended for 90 days for various unethical acts, and it has recommended that Wayne County Circuit Judge Sheila Ann Gibson be publicly censured for chronic lateness. And the JTC is investigating Macomb County Circuit Judge Richard L. Caretti for riding in a car with his children while his intoxicated girlfriend drove. Meanwhile, Van Buren County Circuit Judge Paul E. Hamre managed to avoid a formal JTC complaint, even though he admitted to having inappropriate discussions with two attorneys in a lawsuit, which were recorded.
8. UNETHICAL ATTORNEYS
Reports of lawyer misconduct were reported throughout the year, but a few cases stood out from the rest. The Michigan Court of Appeals, in a rare move, ordered that two lawyers be reported to the Attorney Grievance Commission for bringing a retaliatory lawsuit against a former client. In other cases, the full Attorney Discipline Board disagreed with sanctions imposed by ADB hearing panels. And in not one but three different cases, the ADB made a common point quite clear: If you steal money, you will be disbarred. In each of the three cases, at the panel level, the lawyers involved got a mere suspension over theft, a punishment the ADB found unacceptably light.
9. FRESH FACES ON THE HIGH COURT
Bridget M. McCormack was elected a justice of the Michigan Supreme Court in November 2012 and took office in January. Before joining the court, she was a law professor and associate dean at the University of Michigan law school. A month later, David F. Viviano was tapped as a Supreme Court justice by Gov. Rick Snyder after Justice Diane Hathaway was forced off the bench. Before coming to the high court, Viviano was chief judge at the Macomb County Circuit Court and the Macomb County Probate Court.
10. DETROIT BANKRUPTCY
The city of Detroit made history in 2013, becoming the largest municipality ever to file bankruptcy. The city filed its petition for Chapter 9 on July 18, ending months of effort by Detroit’s emergency manager to reach agreements with stakeholders. U.S. Bankruptcy Judge Steven W. Rhodes is presiding over the case. He immediately suspended existing lawsuits against the financially-troubled city and barred any new ones. Rhodes conducted dozens of hearings with stakeholders throughout the summer and fall of 2013. Then on Dec. 3, Rhodes ruled the city is indeed eligible.
11. PROSECUTOR TAKES ON JUDGE
Oakland County Prosecutor Jessica R. Cooper filed a complaint for superintending control in Oakland County Circuit Court in November, claiming 52nd District Court Judge Brian W. MacKenzie improperly dismissed cases, falsified court records and made public records nonpublic. MacKenzie responded to Cooper’s allegations, saying the complaint was full of inaccuracies. He also said the prosecutor’s office was asking for “special treatment” and the complaint was an “attack” on his judicial career. MacKenzie has asked that the complaint be dismissed.
12. NEW INTERPRETER COURT RULE
The Michigan Supreme Court announced new MCR 1.111 in September, guaranteeing interpreters for persons who are limited English proficient. But the Department of Justice was not thrilled with the rule, telling the high court in a letter the rule does not resolve the issues it sought to fix. In the story “Justice Dep’t to Michigan high court: Interpreter rule creates new problems,” the DOJ outlined why it has concerns with MCR 1.111. And in the story “A rule no one likes much,” judges explained why the rule could increase costs for the courts, while lawyers and interpreters said the rule does not comply with Title VI of the Civil Rights Act.
13. ‘DARK MONEY’ TARGETED
The State Bar of Michigan took aim in September at undisclosed contributions in judicial elections. Bar leaders asked Secretary of State Ruth Johnson to put an end to anonymous issue advocacy ads in elections by overturning a 2004 declaratory ruling that had exempted most third-party spending from public disclosure. Johnson issued her decision in November, announcing a draft proposal to institute disclosure and transparency in issue ads. But the state Legislature immediately sought to nullify Johnson’s decision with Senate Bill 661. The proposal keeps donors to issue ads anonymous and doubles the amount of money people and businesses can give to campaigns. SB 661 passed the Legislature and, as of Dec. 12, was on its way to the Gov. Rick Snyder for his signature.
14. LAW SCHOOL LEGAL BATTLES
The Thomas M. Cooley Law School was on both sides of the courtroom in 2013, as both a plaintiff and a defendant. In July, the 6th U.S. Circuit Court of Appeals tossed out a lawsuit brought by a group of Cooley graduates who claimed the school falsely represented its employment statistics. In late September, a federal judge ruled that Cooley could not sue a New York law firm and lawyer for allegedly making defamatory statements about the employment rates for Cooley graduates.
15. BAR EXAM FRUSTRATION
The February and July 2013 bar exam results continued a trend of disappointingly low bar passage rates in Michigan. The Board of Law Examiners discontinued scaling in 2012, and the policy has resulted in a lower passage rate, experts say. Meanwhile, the American Bar Association is considering whether to raise bar passage rates for law schools to remain accredited. The concern now is, if the ABA increases rates to 80 percent, as suggested, some Michigan law schools might be struggling to meet accreditation requirements.
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