Delta County Board hires special legal counsel for two lawsuits
ESCANABA — The Delta County Board of Commissioners approved hiring special outside legal counsel for two lawsuits against the county during a special meeting held Thursday afternoon, even though County Administrator Ashleigh Young was unable to confirm that the county had been served with the suits.
“I’m unable to state if we have been served. We asked if it was Certified Mail, signed — I have not received an answer. They did not know,” said Young of the county employee who was initially in a letter notified of the suits allegedly filed in federal district court.
An attempt by the Daily Press to locate filings related to the suits through the Public Access To Court Electronic Records system did not return any cases for which Delta County was a named party in a case filed within the last six months in the Western District of Michigan.
Still, the county felt the suits were serious enough to seek legal counsel from the Michigan Municipal Risk Management Authority, the county’s liability insurance provider, and from the Delta County Prosecutor’s Office, which serves as the county’s primary legal counsel. MMRMA declined due to the nature of the suits, and, according to Young, Prosecutor Lauren Wickman declined to take the cases “due to her current caseload.”
It was asked Thursday if the county could be represented by Attorney Scott Graham, an attorney hired by the previously seated board of commissioners. However, Young noted that the request for proposals that led to Graham’s hire specified he was to be used for general civil counsel and the suits were more specialized.
According to comments made by Young and the commissioners Thursday, the cases revolve proceeds from tax foreclosures. They are similar to other cases the county was involved in a few years ago, but comes after a Michigan Supreme Court Case — Rafaeli, LLC v Oakland County — and changes to the state’s General Property Tax Act that barred counties from profiting off of surplus revenue generated in auctions of properties that were sold in tax sales.
Because the suits have allegedly been filed in federal court, the county has a 21-day window to file a response after being served in the suit. However, because Young could not confirm whether or not the county had been served, it was unclear if the clock had started ticking.
“We don’t know if we’ve been served? Then I have no idea why we’re here,” said Commissioner Kelli van Ginhoven, who was the lone vote against hiring outside legal counsel for the suits.
Young did not specify when the letter came into the county’s possession. After pressing by van Ginhoven, she said that MMRMA had declined to represent the county on May 1 and Wickman had declined around May 9 or May 10. If the letter constituted legal service and MMRMA had declined the same day the letter was received, the county would only have until Wednesday to find an attorney and have a response filed.
Young indicated that the county would be pursuing representation from an outside firm that had been recommended previously by MMRMA.
Commissioner Patrick Johnson noted that the cases may be precedent setting and suggested the county seek financial support from the Michigan Association of Counties, if it is available. Young said she would look into it.