STERLING HOTELS, LLC v. MCKAY

CourtDistrict Court, E.D. Michigan
DecidedJune 11, 2025
Docket5:20-cv-10452
StatusUnknown

This text of STERLING HOTELS, LLC v. MCKAY (STERLING HOTELS, LLC v. MCKAY) 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
STERLING HOTELS, LLC v. MCKAY, (E.D. Mich. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

Sterling Hotels, LLC,

Plaintiff, Case No. 20-cv-10452

v. Judith E. Levy United States District Judge Scott McKay, Mag. Judge David R. Grand Defendant.

________________________________/

OPINION AND ORDER DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT [69]

Before the Court is Defendant’s Motion for Summary Judgment (“the Motion”). (ECF No. 69.) For the reasons set forth below, the Motion is DENIED. I. Background This case is about a dispute between Plaintiff, a Michigan limited liability company, and Defendant, a State of Michigan elevator inspector, who is sued in his individual capacity for shutting down Plaintiff’s hotel’s elevators in November 2019. (ECF No. 10, PageID.172–173, 176–177.) Plaintiff has one pending claim against Defendant based on the Due Process Clause of the Fourteenth Amendment.

Plaintiff is a hotel in Sterling Heights, Michigan, which has five above-ground floors and six elevators. (Id. at PageID.173.) Plaintiff

alleges that four of its elevators are at issue in this case. (Id. at PageID.176 n.3.) The elevators have serial numbers 37566, 37567, 37580, and 38750. (ECF No. 69-6, PageID.919.)

This case goes back quite a while. On November 19, 2018, the Michigan Department of Licensing and Regulatory Affairs (“LARA”) found that the four elevators violated the applicable 2010 American

Society of Mechanical Engineers (“ASME”) Code, because the removal of a back-up power generator diminished the safety of the elevators. (ECF No. 69-4, PageID.839.) LARA required Plaintiff to install a backup

generator for its elevators or to seek a variance from Michigan’s Elevator Safety Board (“ESB”). (Id.) Plaintiff appealed this decision and, in the alternative, sought a variance exempting it from this rule. (ECF No. 10-

3, PageID.202–204.) The ESB granted it a variance on July 3, 2019. (ECF No. 69-6, PageID.924, 926.) In granting the variance, the ESB “allow[ed] all 4 elevators to be placed back into services provided battery lowering be added to the 5 operational elevators in the building within 3 months and added to the 6th elevator prior to being placed back into service.” (Id.

at PageID.926.) Plaintiff had until October 3, 2019 to add the battery lowering devices. (Id.)

During a meeting on September 24, 2019, the ESB noted it had not received permits, which would indicate that the work required by the variance would be timely completed, so it sent a letter to Plaintiff

indicating that “if [Plaintiff did] not comply by November 1, 2019, including proper permitting and inspection, the elevators [would] be sealed out of service.” (Id. at PageID.930.) The ESB issued an amended

decision, finding and concluding that it was unlikely the necessary permits could be secured, the work performed and the inspections conducted on battery lowering devices which were ordered to be installed, before the 90-day deadline was to expire. The goal of the Board was to prevent the elevators from being sealed out of service, so they extended the deadline by three weeks. (Id. at PageID.932.) On October 24, 2019, counsel for Plaintiff updated LARA that most of the work had been completed and that an inspector would be coming on November 1, 2019. (ECF No. 69-7, PageID.1013.) Defendant performed inspections on the elevators on November 1 and November 5, 2019, and found deficiencies. (ECF No. 10-2,

PageID.199; ECF No. 69-7, PageID.1007.) The elevators were sealed on November 5, 2019. (ECF No. 69-8.)

LARA also issued written notices on November 5, 2019 after Defendant shut down the four elevators, citing issues such as lack of written testing procedures, and problems with doors, door buttons, and

visual signals. (See id.) In Defendant’s deposition, however, he stated that one of the reasons he failed Plaintiff’s elevators was that they did not go the basement during a power outage. (ECF No. 69-3, PageID.761.)

Jeff Cooper, the Corporate Area Chief Engineer for Plaintiff who was present for the November 5th inspection, stated in an affidavit that Defendant told him “he [was] failing all of the elevators because they did

not descend to the basement in the event of a power outage or fire,” including one elevator that had “no basement underneath it.” (ECF No. 10-2, PageID.199.)

Defendant acknowledged in his deposition that the violation notices sent to Plaintiff after the November 5th inspection did not refer to the elevators’ failure to descend to the basement. (ECF No. 69-3, PageID.764.) He stated that he did not know why that rationale was omitted from the notices. (Id.)

The elevators were temporarily unsealed in December 2019, and Plaintiff continued to struggle to comply with the ESB’s orders, including

with respect to certain provisions of the 2010 ASME Code.1 See Mich. Comp. Laws § 408.806(1) (adopting the ASME Code); Mich. Admin. Code r. 408.7003 (same). Relying on the advice of its elevator contractor,

Plaintiff eventually acknowledged in a February 26, 2020 appeal to the ESB that the elevators were not in compliance with the 2010 ASME Code. (ECF No. 69-6, PageID.939; see also ECF No. 69-9, PageID.1038–

1039 (elevator contractor’s January 15, 2020 letter stating that the elevators would need certain work to comply with the 2010 ASME Code).)

1 At a December 17, 2019 ESB meeting, it heard testimony from Plaintiff’s counsel and others and temporarily unsealed the elevators for use “to allow for all of the elevators to have battery lowering devices that are code compliant, to include working open and flashing hat buttons.” (ECF No. 69-6, PageID.935, 937.) It gave Plaintiff until January 31, 2020 to become code-compliant or to have a contractor explain why retrofitting the elevators was impossible. (Id.) The elevators failed a January 31, 2020 inspection and most were re-sealed. (ECF No. 69-6, PageID.948– 958.) On February 26, 2020, Plaintiff appealed again, (Id. at PageID.941), and the ESB, in a June 23, 2020 decision, allowed two elevators to be used. (Id. at PageID.1003.) The hotel was sold before the hotel was brought into compliance. (Id. at PageID.1004.) Plaintiff filed its initial complaint on February 21, 2020, (ECF No. 1), and amended it on November 2, 2020, (ECF No. 10), with leave of the

Court. (ECF No. 9 (permitting amendment after Defendant filed his initial motion to dismiss).) The Court then granted in part and denied in

part Defendant’s motion to dismiss the amended complaint. (ECF No. 20.) Defendant appealed, (ECF No. 24), and the Sixth Circuit affirmed in part and reversed in part. Sterling Hotels, LLC v. McKay, 71 F.4th 463

(6th Cir. 2023). The Sixth Circuit held that Defendant had qualified immunity with respect to Plaintiff’s regulatory takings claim, but it allowed Plaintiff’s procedural due process claim to proceed. Id. at 467–

68. The Court had already dismissed Plaintiff’s equal protection claim, a decision that Plaintiff did not appeal. See id. at 466. In finding that Plaintiff’s due process claim survived the motion to dismiss, the Sixth

Circuit explained that Defendant “sealed the elevators without providing any advance notice that the elevators should descend to the basement. Thus, [Plaintiff] alleges, [Defendant] failed to provide it with any

opportunity to respond to that requirement.” Id. at 467. The Sixth Circuit rejected Defendant’s arguments that the Board’s letters announcing the inspection provided notice, because they did not say that the elevators had to descend to the basement during emergencies, in addition to noting that Defendant did not cite any regulation “that could have put Sterling

on notice of that putative requirement.” Id. Nor were notices after sealing the elevators sufficient process. Id.

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

Related

Mullane v. Central Hanover Bank & Trust Co.
339 U.S. 306 (Supreme Court, 1950)
Boddie v. Connecticut
401 U.S. 371 (Supreme Court, 1971)
Board of Regents of State Colleges v. Roth
408 U.S. 564 (Supreme Court, 1972)
Memphis Light, Gas & Water Division v. Craft
436 U.S. 1 (Supreme Court, 1978)
Harlow v. Fitzgerald
457 U.S. 800 (Supreme Court, 1982)
Cleveland Board of Education v. Loudermill
470 U.S. 532 (Supreme Court, 1985)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Pearson v. Callahan
555 U.S. 223 (Supreme Court, 2009)
Michael F. Hahn and Marie Hahn v. Star Bank
190 F.3d 708 (Sixth Circuit, 1999)
Sean Michael Flaim v. Medical College of Ohio
418 F.3d 629 (Sixth Circuit, 2005)
Dorsey v. Barber
517 F.3d 389 (Sixth Circuit, 2008)
Wagner v. City of Memphis
971 F. Supp. 308 (W.D. Tennessee, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
STERLING HOTELS, LLC v. MCKAY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sterling-hotels-llc-v-mckay-mied-2025.