American Federation of State, County & Municipal Employees v. City of Detroit

652 N.W.2d 240, 252 Mich. App. 293
CourtMichigan Court of Appeals
DecidedOctober 6, 2002
DocketDocket 241606
StatusPublished
Cited by7 cases

This text of 652 N.W.2d 240 (American Federation of State, County & Municipal Employees v. City of Detroit) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Federation of State, County & Municipal Employees v. City of Detroit, 652 N.W.2d 240, 252 Mich. App. 293 (Mich. Ct. App. 2002).

Opinion

Per Curiam.

Defendants, the city of Detroit and the Detroit Housing Commission (dhc), appeal as of right *297 from the trial court’s order granting summary disposition for plaintiff, American Federation of State, County and Municipal Employees (afscme) doing business as afscme Michigan Council 25 and afscme Locals 23 and 2394, with respect to its request for declaratory relief, granting in part the request for declaratory relief of intervening plaintiff, Detroit City Council, regarding the validity of several ordinances related to the dhc, and granting plaintiff’s request for a preliminary injunction barring the city from severing its employment relationship with dhc employees until further legislative action by the city council. We reverse the trial court’s order with respect to afscme’s request for declaratory relief, reverse in part and affirm in part the trial court’s order with respect to the city counsel’s request for declaratoiy relief, and vacate the preliminary injunction.

i. jurisdiction

As a preliminary matter, AFSCME first asserts that this Court lacks jurisdiction of this appeal in view of the fact that count I of afscme’s first amended complaint was still outstanding. We disagree. This Court has the jurisdiction to entertain appeals filed by parties aggrieved by a final order of the circuit court. MCR 7.203(A)(1). The term “final order” is defined by MCR 7.202(7)(a)(i) as “the first judgment or order that disposes of all the claims and adjudicates all the rights and liabilities of all the parties.” In turn, the term “claim” is defined by MCR 2.111(B)(1) as “[a] statement of facts, without repetition, on which the pleader relies in stating the cause of action, with specific allegations to inform the adverse party of the nature of the claims the adverse party is called on to *298 defend.” In count I of its first amended complaint, afscme requested the issuance of a preliminary injunction to keep the status quo while it litigated an unfair labor grievance in the Michigan Employment Relations Commission. In both the January 2002 and the May 2002 orders, the circuit court issued a preliminary injunction in favor of afscme. The orders in question disposed of the claim for a preliminary injunction as well as adjudicated the rights and liabilities of the parties concerning this cause of action. If the injunction was not as broad as AFSCME desired, that issue is relevant to the validity of the circuit court’s actions, not the jurisdiction of this Court.

' H. ISSUES PRESENTED

Notwithstanding the assertion of. collateral and underlying matters, the two decisive issues for our determination on appeal are (1) whether the 1996 amendments of the Michigan housing commission act, MCL 125.651 et seq., by operation of law, severed the city’s employment relationship with persons assigned to and employed by the dhc, thereby making it a separate and autonomous entity without the need for “legislative action” by the city council, and (2) whether certain ordinances enacted by the city council, addressing dhc operations, procedures, and employee compensation and classification, are valid, in light of the current version of the housing commission act.

ffl. BACKGROUND AND PROCEDURAL HISTORY

The city of Detroit established the dhc in 1933, under the authority of the housing commission act, 1933 PA 18, MCL 125.651 et seq. Pursuant to the housing commission act, cities meeting the population *299 requirement were authorized “to purchase, acquire, construct, maintain, operate, improve, extend, and/or repair housing facilities and to eliminate housing conditions which are detrimental to the public peace, health, safety, morals, and/or welfare.” In re Brewster Street Housing Site, 291 Mich 313, 323; 289 NW 493 (1939). Under the former version of the housing commission act, the dhc was essentially under the control of the city, and its employees were city employees.

The United States Department of Housing and Urban Development (hud) funds, monitors, and regulates public housing authorities, including the dhc. For eighteen years, from 1979 through 1997, HUD Public Housing Management Assessment Program rated DHC a poor performer and a profoundly “troubled” public housing authority because of vacant and dilapi-dating properties, untimely rent collections, and a general failure to meet hud standards. As a result of the history of failure, the city entered into a series of agreements with hud that would permit dhc to make substantial improvements in its performance, effectiveness, and efficiency in its role of providing low-income housing. In July 1995, hud and the city entered into a memorandum of agreement (moa), followed by a partnership agreement in December 1995. A complete and functional separation of the dhc from the city’s governmental systems was a major objective and a basic constant in the agreements. The separation was described as being essential to maximizing the dhc’s operational efficiency and achievement of hud standards.

During the same period that the city was attempting to improve the dhc, the Legislature passed 1996 PA 338 in June 1996, which substantially amended the *300 housing commission act. The 1996 amendments established housing commissions, such as the dhc, as distinct public bodies corporate with enumerated independent powers and authorities. See MCL 125.654(5). Among the powers specifically conferred on such commissions are the powers to “sue or be sued,” MCL 125.654(5)(a), to form or incorporate corporations, MCL 125.654(5)(b), (d), (e), to serve as a shareholder or member of a qualified nonprofit corporation, MCL 125.654(5)(c), to make determinations concerning low-income housing and the elimination of detrimental housing, MCL 125.657(a), to solicit funds for operation, MCL 125.656(2), to purchase, lease, sell, exchange, transfer, assign, mortgage, improve,'or construct real or personal property, MCL 125.657(b), and to exercise complete control over its projects, MCL 125.662. In addition, in accordance with the 1996 amendments, housing commissions such as the DHC were statutorily authorized to employ and fix the compensation of their directors and other employees and to prescribe the duties of those persons. MCL 125.655(3).

In October 1996, hud and the city entered into a revised moa, which was approved by the city council. The revised MOA did not alter the status of the dhc in relation to the city. Indeed, the revised moa required the dhc to seek “additional approvals from the City Council in order to take full advantage of state legislation providing greater authority for housing commissions.” By its terms, the revised moa ended on June 30, 1997.

The dhc was removed from hud’s troubled list in 1997. Thereafter, in 1998, the former mayor prepared a memorandum of understanding and related ordi *301 nances, seeking to establish the dhc as a “separate and independent entity,” which the city council rejected.

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Bluebook (online)
652 N.W.2d 240, 252 Mich. App. 293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-federation-of-state-county-municipal-employees-v-city-of-michctapp-2002.