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A Better Partnership

May 2017

May 2017
May 19, 2017

MSC: Trial court has discretion to hold evidentiary hearing to determine if search warrant affidavit is sufficient for probable cause

In People v Franklin, No. 152840, the Michigan Supreme Court held that a trial court may exercise its discretion and hold an evidentiary hearing to review the veracity of an affidavit on which a search warrant is based to determine whether the search warrant was supported by probable cause. Under Franks v Delaware, 438 US 154 (1978), a trial court must hold a hearing at a defendant's request whenever a defendant offers evidence sufficient to demonstrate a substantial preliminary showing that the affiant made a false statement—knowingly and intentionally, or with reckless disregard for the truth—and the false statement was necessary to the finding of probable cause required to issue the warrant. However, in a unanimous opinion, the Court in Franklin determined that Franks merely governs when a trial court must hold an evidentiary hearing under the Fourth Amendment; however, even in the absence of a substantial preliminary showing under Franks, a trial court may hold an evidentiary hearing to review an affidavit supporting a search warrant to determine whether the warrant was supported by probable cause.

May 2017
May 17, 2017

Focusing on financial injury can cost you your shareholder oppression claim

A shareholder suppression claim is not all about the money.  In Frank v. Linkner, No. 151888, the Michigan Supreme Court held that a cause of action for LLC member oppression accrues when an LLC manager substantially interferes with the interests of a member as a member—even if that member has not yet incurred a calculable financial injury.  

May 2017
May 11, 2017

Department of Health and Human Services failed to accommodate disabilities by using a one-size-fits-all family reunification plan, says MSC

The Department of Health and Human Services may not use a standard family plan when attempting to reunify families in probate matters, said the Michigan Supreme Court in In re Hicks, No. 15378.  Specifically, the Court held that the Department has not complied with its duty to make reasonable efforts at family reunification when it fails to modify its services to reasonably accommodate a parent with a disability. 

May 2017
May 11, 2017

MSC holds tax exemption open to all educational institutions regardless of for-profit status

All charitable, educational, and scientific institutions--whether nonprofit or for-profit--are exempt from personal property tax under the General Property Tax Act, according to the Michigan Supreme Court's recent decision in SBC Health Midwest Inc. v. City Of Kentwood, No. 319428.  Though a specific provision in the Act exempts real and personal property of a not-for-profit educational institution from tax, that provision does not negate the more general provision exempting from taxation the personal property of all educational institutions, regardless of nonprofit or for-profit status.

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