HRT Enterprises v. Detroit, City of

CourtDistrict Court, E.D. Michigan
DecidedMarch 10, 2021
Docket2:12-cv-13710
StatusUnknown

This text of HRT Enterprises v. Detroit, City of (HRT Enterprises v. Detroit, City of) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HRT Enterprises v. Detroit, City of, (E.D. Mich. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

HRT ENTERPRISES,

Plaintiff, Case Number 12-13710 v. Honorable David M. Lawson

CITY OF DETROIT,

Defendant. _____________________________________/

CORRECTED OPINION AND ORDER DENYING DEFENDANT’S MOTION FOR RECONSIDERATION AND DENYING PLAINTIFF’S MOTION TO CERTIFY THE CASE FOR INTERLOCUTORY APPEAL

The Court issues this corrected opinion to resolve a textual error regarding the date of the taking that was determined by the jury’s verdict. A jury returned a verdict of $4.25 million in favor of the plaintiff HRT Enterprises in this inverse condemnation case and determined that the City of Detroit’s actions amounted to a taking as of January 1, 2009. The plaintiff’s property has sometimes figured in the City’s on-again-off- again plans to expand or improve Detroit City Airport, now known as the Coleman Young International Airport. The jury was not asked to determine whether the City’s actions amounted to a taking; that question was resolved by my predecessor, the Honorable Avern Cohn, on summary judgment. After the jury returned its verdict, the City moved for a new trial, which Judge Cohn granted subject to a remittitur reducing the damages to $2 million. Both sides rejected the remitted amount, and that’s where the case stands. However, both sides are seeking second (and third) opinions: the City has moved for “reconsideration” of Judge Cohn’s summary judgment decision and a previous order denying a motion to dismiss, and the plaintiff has asked this Court to certify the remittitur decision for interlocutory appeal. Although the Court has the authority to revisit any of its interlocutory orders before entry of a final judgment, Fed R. Civ. P. 54(b), the City has not identified any procedure that allows it to make such a request to the Court (the City’s reconsideration request is woefully tardy) or any good reason to upset Judge Cohn’s well-reasoned summary judgment decision, or his order denying the City’s earlier motion for reconsideration. HRT has not established the

grounds required by 28 U.S.C. § 1292(b) for an interlocutory appeal; it has not shown that there are substantial grounds for disagreement over Judge Cohn’s decision that the evidence failed to support the jury’s damage award. Both motions will be denied. The case will be scheduled for a trial on damages when the Court is able to summon a jury. I. After Judge Cohn ordered remittitur and a new trial, he retired and the case was reassigned to the undersigned. The Court held a status conference with the parties in February of 2020 where the City indicated its intention to file a motion to revisit Judge Cohn’s summary judgment decision, promising that it had “new evidence” that called into question the correctness of the taking

determination. The Court allowed the City to file new briefing if it could do so without running afoul of procedural rules. The City then filed what it has titled a motion for reconsideration, asking the Court to allow new briefing on the issue of whether a take occurred. It has not made good on its promises: the “new evidence” consists of a rehash of facts discussed at length by the parties in their previously-filed briefs and Judge Cohn’s opinions, and they have not identified a procedural vehicle that allows them to seek reconsideration again. HRT’s property is a commercial parcel adjacent to French Road, which separates it from the airport proper. At one time, it contained a 188,000-square-foot building that operated as a steel service center. The front of the building is approximately 525 feet from the centerline of the airport’s existing Runway 15/33. Although portions of the building have been demolished, the remaining portion of the building, consisting of office space, is within the FAA’s standard building restriction line. Since 1972, the FAA has granted design waivers, allowing the airport to operate with a smaller safety area than FAA standards require. The waivers were renewed in 1988, but the city was expected to take appropriate action by mitigating these airport hazards. The city

proposed to acquire properties and eliminate structures to clear an area 750 feet from the existing runway centerline when it acquired FAA funds to do so. The City’s plans for the airport, and their effect on the viability of HRT’s property for commercial use, has spawned multiple lawsuits in state court and this Court. The City never formally condemned HRT’s property under its eminent domain power, although it condemned or otherwise acquired other land in the airport vicinity in its so-called “Mini-Take Area.” In 1996, the City filed with the FAA and the State the Airport Layout Plan. The plan detailed the expansion of the airport, including plans for a new runway. The City relied on the plan to request federal funding. However, by 2005, the airport expansion had not occurred, nor was funding forthcoming

for acquisition of the property. Since 2005, the City has acquired approximately a third of the residential properties within the Mini-Take Area. Additionally, the airport owns approximately another third. All of the remaining residential property in the Mini-Take Area is either owned or is being acquired by the City through federal funding. Another plan was drafted in 2009 in contemplation of a larger expansion of the airport than the 1996 plan. The 2009 plan designates the HRT property for acquisition. If the airport were expanded as contemplated in the 2009 Plan, Lynch and French Road would no longer exist. In addition, the 2009 Plan called for a new runway and a new taxiway that would pass directly through HRT’s property. The 2009 Plan would have required the City to acquire that property, but the 2009 Plan was not an official plan. As of 2015, the only approved Airport Layout Plan on file with the FAA and the State was the 1996 Plan. The City’s acquisition policies spawned other litigation over the property. Each of HRT’s two tenants filed a lawsuit alleging inverse condemnation of their leasehold interests. Merkur Steel filed a takings suit against the City in the Wayne County, Michigan circuit

court in September 1999. That suit resulted in a jury verdict in favor of Merkur Steel concluding that the City’s acquisition efforts amounted to a de facto taking of Merkur Steel’s leasehold interest in the property. The Michigan Court of Appeals affirmed that determination and the $6.8 million compensation award. See Merkur Steel Supply Inc. v. City of Detroit, 261 Mich. App. 116, 680 N.W.2d 485 (2004). Merkur Steel’s sub-tenant Steel Associates, Inc. filed a separate action in the Wayne County circuit court against the City also alleging a de facto taking of its leasehold interest. In 2003, a jury found in favor of Steel Associates and awarded $4 million in compensation. The court of appeals affirmed in a 2005 decision. See Steel Associates, Inc. v. City of Detroit, No. 254025, 2005 WL 2656648 (Mich. Ct. App. Oct. 18, 2005).

Subsequently in 2005, Merkur Steel, Steel Associates, and HRT collectively filed suit in Wayne County circuit court against the City for inverse condemnation. The parties alleged “that the filing of the airport layout plan and the threat of potential condemnation of the property affected its property so adversely as to amount to [a] taking without just compensation.” HRT Enterprises v. City of Detroit, No. 268285, 2007 WL 2118867, at *1 (Mich. Ct. App. July 24, 2007). HRT proceeded to trial on its own, and in 2005 a jury returned no-cause-of-action verdict in favor of the City.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Penn Central Transportation Co. v. New York City
438 U.S. 104 (Supreme Court, 1978)
Gale Q. Best, Jr. v. Shell Oil Company
107 F.3d 544 (Seventh Circuit, 1997)
Estes v. Titus
751 N.W.2d 493 (Michigan Supreme Court, 2008)
HRT ENTERPRISES v. City of Detroit
745 N.W.2d 786 (Michigan Supreme Court, 2008)
Dodge v. Susquehanna University
796 F. Supp. 829 (M.D. Pennsylvania, 1992)
Dart v. Dart
597 N.W.2d 82 (Michigan Supreme Court, 1999)
Merkur Steel Supply, Inc v. City of Detroit
680 N.W.2d 485 (Michigan Court of Appeals, 2004)
In re: Donald Trump
874 F.3d 948 (Sixth Circuit, 2017)
Knick v. Township of Scott
588 U.S. 180 (Supreme Court, 2019)
Dart v. Dart
460 Mich. 573 (Michigan Supreme Court, 1999)
Rodriguez v. Tennessee Laborers Health & Welfare Fund
89 F. App'x 949 (Sixth Circuit, 2004)
Heights Community Congress v. Hilltop Realty, Inc.
774 F.2d 135 (Sixth Circuit, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
HRT Enterprises v. Detroit, City of, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hrt-enterprises-v-detroit-city-of-mied-2021.