# Petition for Writ of Certiorari — Bylinski v. City of Allen Park

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1999
- **Citation:** 527 U.S. 1037

## Text

Supreme OCowt, U.S.
No. FILLED

VRLTZ4 APR 26M.

OFFICE UF THE CLERK

In the
Supreme Court of the Hnited States

October Term, 1998

GLORIA BYLINSKI, GLORIA BELLMAN, ALLAN COLLINS, DENNIS
COATES, DOUGLAS HAMMAR, ROBIN HAMMAR, SANDRA
HOLIDAY, STEVEN HOLIDAY, ROBERT JARRELL, ANISE PIERCI
RICHARD PRESSEY, JIMMY SEACRIST, and MOLLY SEACRIST, and
all other persons similarly situated,

Petiti mers,

CITY OF ALLEN PARK, a Michigan municipal corporation, CHARTER
TOWNSHIP OF BROWNSTOWN, a Michigan municipal corporation,
CITY OF ECORSE, a Michigan municipal corporation, CITY OI
LINCOLN PARK, a Michigan municipal corporation, CITY OF RIVER
ROUGE, a Michigan municipal corporation, CITY OF ROMULUS, a
Michigan municipal corporation, CITY OF SOUTHGATE, a Michigan
municipal corporation, CITY OF TAYLOR, a Michigan municipal

corporat ion,

Jo nonvieonit
Ke SPOoNUde nis

PETITION FOR WRIT OF CERTIORARI

JOHN D. SWARTZ, ESQUIRI
Counsel of Record

PETER W. MACUGA II, ESQUIRI
615 Griswold Street, Suite 1520
Detroit, Michigan 48226

(313) 965-0045

Attorneys for Petitioners

Curry & Taylor Appellate Service (800) 222-8738 / Appellate@worldlynx.net

QUESTIONS PRESENTED

(here are two questions presented on appeal. First,
whether the Sixth Circuit opinion below is in direct conflict
with the Seventh Circuit regarding the applicetion of the All
Writs Act, 28 U.S.C. 1651(a), to obtain federal jurisdiction
Over non-parties in order to protect the integrity of a federal
consent decree. Second, whether the Sixth Circuit was
without authority when it upheld the finding of federal
jurisdiction over a third party state constitutional law claim
filed in state court so as to protect the integrity of a federal
consent decree, to which the Petitioners were not a party,
absent statutory authority.

'

PARTIES TO THE PROCEEDING

All of the parties on the caption were before the Court
of Appeals. Those parties were: Gloria Bylinski, Allan
Collins, Dennis Coates, Steven Holiday, Sandra Holiday,
Richard Pressey, Jimmy Seacrist, Molly Seacrist, Gloria
Bellman, Anise Pierce, Douglas Hammar, Robin Hammar,
Robert G. Jarrell, City of Allen Park, Charter Township of
Brownstown, City of Ecorse, City of Lincoln Park, City of
River Rouge, City of Romulus, City of Southgate, and City of
Taylor.

ill

TABLE OF CONTENTS

Page
Questions Presented ...........0ceee eee eee ees Say Gen 4
Parties to the Proceedings ...... ee eae oo oe a ae ae
Ce Oe NR is nk ccesscesoscceceryrosonscenss i]
lable of Authorities ...... SS sy A Py eye ct a
Opinions Below ............+00eeeee eres coaaoawens |
Statement of Jurisdiction ..........---+++005: oe ee
Statutory Provisions Involved .........----++e+eeeeeerees 2
Statement of the Case .......-.-cccccscceceeeecercseeees 2
A. Statement of facts ........ Be ne aie on Sines weg aah 3
B. Course of proceedings and disposition below ......... ©
Reasons for Granting the Writ ...........050+seee eee: ‘coun
1 THE PETITION SHOULD BE GRANTED
BECAUSE THE SIXTH CIRCUIT OPINION
BELOW IS IN DIRECT CONFLICT WITH
THE SEVENTH CIRCUIT REGARDING
THE APPLICATION OF THE ALL WRITS
ACT. 28 U.S.C. § 165l(a), TO OBTAIN
FEDERAL JURISDICTION OVER
NON-PARTIES IN ORDER TO PROTECT
THE INTEGRITY OF A_ FEDERAL
COIS T DUCE. one cs eve seccnsnecewssues ee ae

iV
il. THE PETITION SHOULD BE GRANTED
BECAUSE THE SIXTH CIRCUIT WAS
WITHOUT AUTHORITY WHEN IT
UPHELD THE FINDING OF FEDERAL
JURISDICTION OVER A THIRD PARTY
STATE CONSTITUTIONAL LAW CLAIM
FILED IN STATE COURT SO AS TO
PRUIECT sos wen o0 nc Scanbisecsscneishexveisereets 19
Appendix

Exhibit A - Circuit Court Opinion ................... la

Exhibit B - District Court Opinion ................... 7a

Exhibit C - District Court Opinion .................. 29a

V

TABLE OF AUTHORITIES

Page
Cases

Agent Orange Product Liability

Litigation, 996 F.2d 1425 (2nd Cir.

ON ca Sues daane tov udew er ne cecenn RVEERES 9, 11
Alemite Mfg. Corp. v Staff, 42 F.2d 832

(2nd Cig, 99D) oc ccccecccccccccscccncetedneseseuenes 15
Application of County ¢ ‘ollector of

Winnebago County, 96 F.3d 890

(Ft Cie. 1996) ccc ccck csc cccnstnasscdeene: 12, 13, 16-18
Auburn Medical Center, Inc. v. Peters,

953 F.Supp. 1518 (M.D. Ala. 1996) ......------0+++) 10
Bylinski v. City of Allen Park, 8

F.Supp.2d 965 (1998) ........--e eee ee eee rere errr eee
Bylinski v. City of Allen Park, 1999

FED App. 0092P (6th Cir.) .....-...seee reeset eres ee es
Chase National Bank vy. City of

Norwalk, 291 U.S. 431 (1934) ..--- eee e reece eer e eee 15
Dunn vy. Carey, 808 F.2d 555 (7th Cir.

SY cc kecedeccdhapacdkeeentesas Re Dyno tr ry 16
Firefighters Local 93 v. City of

Cleveland, 478 U.S. 501 (1986) .....--.--ee eee eee ee 16
Hillman v. Webley, 115 F.3d 1461 (10th

Cie BOOTY icc cauvccueuvcenbrabense ssa nes cen eeanas 10
Martin v. Wilks, 490 U.S. 755 (1989) ....----+-- 15, 16, 17
Mongelli v. Mongelli, 849 F.Supp. 215

(S.D.N.Y. 1994) ....-cccccccccvsccsscecccrscvccecses 10

vl

Pennsylvania Bureau of Correction v.
United States Marshals Serv., 474

Eis LT PD Cas Da baw ares cincwesan eb cekctivnn cone 10
Perkins v. City of Chicago Heights, 47

fe” arg y, Le Al.) DARPA cae ee eptage te Be IE: 16
Swetland vy. Cu-ry, 188 F.2d 841 (6th

Gris ROED. eh ebbevesh abbek bier vads Wakee dcenaheeeteti 15

Taxpayers Allied for Constitutional
Taxation v. Wayne County, 537
IN, Wik SO WENGE. BES CUDRS) cvccccsvccevasceccvens 10

Thompson v. Merrell Dow
Pharmaceuticals Inc., 766 F.2d
Fe SO aD. SSD. Siccw ken cess kacawi ee Ohkenubors 1]

United States v. Wayne County, Civ.
Action No. 87-70992 (E.D. Mich.,
PO IIR iis ds dow vue Uowes doxas ch bkia sc’, Sees

Vanguards of Cleveland v. City of
Cleveland, 23 F.3d 1013 (6th Cir.

POE ar oiee eh'nuye birch Peat TRREL bas Ce Riaae eke 14,18
Williams v. Vukovich, 720 F.2d 909,

ane CO Be, FS i kiss Ci bawawass eedsisechictees 15

Constitutional Provisions
Mich. Const 1965, wt. 9 OS) i Ke rin ew ee
Rem. Comet, T9653, OU DS Be ai os cactccinestnareanvasean 3
Rules and Regulations
PANE. Oss tanan cue tiereesuenensediacinaaueliaoueeten 7
RSC. GSC ics vss exch} i ciodes bata enea enone 15
Statutes

SOUS: 0 MAES oc ees g

S.C § 1251 et seq

‘L.A. § 600.308a

SO. S1SSt, TSS issn
S.C. §§ 1441(a) and (b) and 1446

LG. B FGSUR) ve ccvesveces

Petitioners, Gloria Bylinski, Allan Collins, Dennis
Coates, Steven Holiday, Sandra Holiday, Richard Pressey,
Jimmy Seacrist, Molly Seacrist, Gloria Bellman, Anise
Pierce, Douglas Hammar, Robin Hammar, and Robert G.
Jarrell, (hereinafter Petitioners) respectfully request that a
writ of certiorari be issued to review the judgment of the
United States Court of Appeals for the Sixth Circuit in this

case.

OPINIONS BELOW

The opinion of the United States Court of Appeals for
the Sixth Circuit has been recommended for publication and
is reported at Bylinski v. City of Allen Park, 1999 FED App.
0092P (6th Cir.). App. A at la. Of the two opinions of the
United States District Court for the Eastern District of
Michigan, Southern Division, that are at issue, only one has
been published and can be found at Bylinski v. City of Allen
Park, 8 F.Supp.2d 965 (1998). App. B at 7a. The other
opinion of the District Court at issue and is unpublished has
been attached beginning at page 29a of the Appendix. App.
C at 29a.

STATEMENT OF JURISDICTION

The opinion of the United States Court of Appeals for
the Sixth Circuit was entered on January 25, 1999. App. A at
la. This Court is conferred jurisdiction upon this Petition
pursuant to 28 U.S.C. § 1245(1).

5

STATUTORY PROVISIONS INVOLVED
The All Writs Act, 28 U.S.C. § 1651(a), states:

(a) The Supreme Court and all courts
established by Act of Congress may issue all
writs necessary or appropriate in aid of their
respective jurisdictions and agreeable to the
usages and principles of law.

The Headlee Amendment, Mich. Const. 1963, art 9,
§ 31, states in pertinent part that:

Units of Local Government are hereby
prohibited from levying any tax not authorized
by law or Charter when this section is ratified
or from increasing the rate of an existing tax
above that rate authorized by law or Charter
when this section is ratified, without the
approval of a majority of the qualified electors
of that unit of Local Government voting
thereon.

STATEMENT OF THE CASE

The facts of this case are simple, straight forward, and
undisputed. The Respondents, in this case, assessed a local
tax upon real and personal property without a vote of the
qualified electors. In doing so, the Respondents intentionally
violated the Headlee Amendment to the Michigan
Constitution, Mich. Const. 1963, art. 9, § 31 (hereinafter
Headlee Amendment). Pursuant to the Michigan
Constitution and Michigan statutory law, jurisdiction of the

Se LS ee eee

3

Petitioners’ Headlee Amendment claim is vested exclusively
in the Michigan Court of Appeals or in the Circuit Courts for
the State of Michigan. Mich. Const 1963, art. 9, § 32;
M.C.L.A. § 600.308a.

Although federal jurisdiction, as set forth in 28 U.S.C.
§ 1331, 1332, is admittedly absent, the lower courts upheld
the removal of the Petitioners’ state constitutional law case
from state court because of the perceived interference of the
Petitioners’ case with the District Court's enforcement of a
consent decree in the federal district court case, United States
v. Wayne County, Civ. Action No. 87-70992 (E.D. Mich.,
Feikens, J.). Due to the lower courts use of Wayne County to
obtain jurisdiction over Petitioners’ state constitutional law
case, a review of the facts and procedures surrounding this
case and the Wayne County case is necessary in order to
address the jurisdictional issues raised herein.

A, Statement of facts

The federal case of Wayne County, supra., arose from
the State and Federal governments enforcement of the Clean
Water Act, 33 U.S.C § 1251 et seq. The purpose of the
federal lawsuit was t> ensure that Wayne County and the
downriver !ocal governments in Michigan, which included
the Respondents' in this action, complied with federal
affluent treatment levels. After ten years of litigation, the
government parties (the only litigants in Wayne County were
governments) in the federal case eventually negotiated a
mutually agreed upon Consent Decree and Final Judgment.

; The Respondents in this case are as follows: City of Allen Park,

Charter Township of Brownstown, City of Ecorse, City of Lincoln Park,
City of River Rouge, City of Romulus, City of Southgate, and City of

Taylor.

4

Pursuant to the Consent Decree and Final Judgment,
Wayne County issued limited tax obligation bonds to finance
the cost Wayne County incurred in its construction and
improvements to Wayne County's waste treatment facilities;
the repayment of Wayne County's limited tax obligation
bonds were solely the responsibility of Wayne County and
not the downriver local governments. The downriver local
governments were to reimburse Wayne County for part of the
cost Wayne County incurred in Wayne County's construction
and improvements to Wayne County's waste treatment
facilities.

In the Wayne County Final Judgment, the
Respondents expressly confessed their intent to violate the
Headlee Amendment to the Michigan Constitution, Mich.
Const. 1963, art. 9, § 31, so as to satisfy their assigned
reimbursement cost to Wayne County. The defendants in
Wayne County, which included the Respondents in this case,
agreed between themselves and "assured" the District Court
that the Respondents would not "contest" the imposition of
the tax; a tax that was in excess of, and in violation of,
applicable charter, statutory and constitutional limitations. In
other words, the Respondents’, agreed to willfully impose
upon the Petitioners, without prior popular vote approval of
the qualified electorate, a new tax, unconstitutional on its
face. To insure the government parties’ complacency
regarding the Respondents’ intent to violate the Headlee
Amendment to the Michigan Constitution, the District Court’
issued the an Injunction on May 12, 1994, whereby the
District Court enjoined any one, including non-parties, from
conducting any type of proceeding that would interfere with

. The same District Court judge presided over both this case and
the Wayne County case.

the implementation of Consent Decree and the Final
Judgment.

In accordance with their intent set forth in the Consent
Decree, the Respondents levied and collected a new tax
(hereinafter Judgment Tax) upon the Petitioners - residents
and taxpayers who reside within one of the Respondents.
Labeled variously as the sewer tax, EPA levy, or Wayne
County Judgment on the Petitioners’ real property tax bill, the
Judgment Tax was never submitted by the Respondents for
popular vote. nor was the Judgment Tax approved by the
Petitioners by popular vote pursuant to the Headlee
Amendment to the Michigan Constitution, Mich. Const.
1963, art. 9, § 31.

In addition, there are several important facts that
should be noted. First, the Petitioners were never parties or
in privity with any of the parties in Wayne County, supra.
Second, the Petitioners’ were never subject to the jurisdiction
of the federal court in Wayne County, supra. Third, the
Petitioners were uever provided notice of the Injunction.
Finally, and most importantly, the Petitioners never consented
to the Respondents levy and collection of the Judgment Tax.
In sum, the Respondents’ taxation of the Judgment Tax
violated the Headlee Amendment to the Michigan
Constitution, and thus, requires the Respondents to refund to
the Petitioners all monies the Respondents unconstitutionally
collected from the Petitioners.

6

B. Course of proceedings and disposition
below

On March 4, 1998, the Petitioners, on behalf of
themselves and all others similarly situated, filed suit in
Wayne County Circuit Court, State of Michigan, alleging a
sole state constitutional claim against the Respondents as a
result of the Respondents’ violation of the Headlee
Amendment to the Michigan Constitution, Mich. Const.
1963, art. 9, § 31. The unconstitutional tax at issue was
voluntarily levied and collected without consent by vote of
the qualified electorate in order to satisfy the Final Judgment
in Wayne County, supra.

On March 23, 1998, the Respondents, pursuant to 28
U.S.C. §§ 1441(a) and (b) and 1446, filed their Notice of
Removal. Following which, the Petitioners filed a Motion for
Remand, Motion for Recuse and Affidavit for
Disqualification of Judge on April 13, 1998. On April 15,
1998, the Respondents filed a Motion to Incorporate the
entire record of Wayne County, supra., into the record of this
proceeding.

The District Court heard oral arguments on the
Petitioners’ two Motions and Affidavit and on_ the
Respondents’ Motion to Incorporate the Record on May 21,
1998. At the conclusion of the hearing, the District Court
denied the Petitioners’ Motion for Remand, Motion for
Recuse and Affidavit for Disqualification of Judge and
granted the Respondents’ Motion to Incorporate the Record.
On June 9, 1998, the District Court issued a written Opinion
and Order Denying the Petitioners’ Motion to Recuse and a
written Opinion and Order Denying the Petitioners’ Motion
for Remand. In the Remand opinion the District Court held

7

that removal was proper because of the courts "inherent
power to enforce agreements entered into in settlement of
litigation pending before them." App. C at 30a- 31a (citations
omitted). The District Court also held that removal was
proper based upon the All Writs Act, 28 U.S.C. § 1651(a).
App. C at 3la. It is important to note that the District Court
did not find any independent basis of federal jurisdiction
beyond the perceived interference with the Consent Decree in
Wayne County, supra.

Also on June 9, 1998, the District Court entered in
Order granting the Respondents’ Motion to Incorporate the

Record.

On May 12, 1998, the Respondents tiled their Motion
for Summary Judgment pursuant to F.R.C.P. 56. On May 19,
1998, the Petitioners also filed a Motion for Summary
Judgment pursuant to F.R.C.P. 56. Before oral arguments
were heard on the Petitioners’ and Respondents’ Motions, the
Petitioners filed a Stipulation and proposed Order, in part,
amending the Petitioners’ Complaint as follows: adding the
City of Romulus and the Charter Township of Brownstown
as Defendants; adding Gloria D. Bellman, Anise Pierce,
Douglas Hammer, Robin Hammar and Robert G. Jarrell as
named Plaintiffs; and withdrawing George Coates d/b/a D&A
Collision as a named Plaintiff. On June 9, 1998, the District
Court entered the Petitioners’ aforementioned Stipulation and
proposed Order Amending the Petitioners’ Complaint.

On June 1, 1998, the District Court heard oral
arguments on both the Petitioners’ and the Respondents’
Motions for Summary Judgment. From that hearing, the
District Court issued a written Opinion and Order, on June 9,
1998, granting the Respondents’ Motion for Summary

8

Judgment dismissing the Petitioners’ case. In doing so, the
District Court significantly overextended the authority of a
federal district court to enforce federal judgments and
misconstrued and misapplied Michigan law regarding the
Headlee Amendment to the Michigan Constitution, laches,
and the Bigger Doctrine. The District Court also ignored the
Respondents’ express admission to violating the Headlee
Amendment.

On appeal to the Sixth Circuit, the Petitioners sought
review of the District Court's denial of the Petitioners’ Motion
for Remand and the District Court's grant of the Respondents’
Motion for Summary Judgment. Upon review, the Sixth
Circuit affirmed the District Court's Order denying
Petitioners’ Motion for Remand. According to the Sixth
Circuit, the federal court was conferred jurisdiction pursuant
to the All Writs Act, 28 U.S.C. § 1245(1), and pursuant to the
court's authority to protect the "integrity" of its consent

decrees.

The Sixth Circuit also affirmed the District Court's
grant of Respondents’ Motion for Summary Judgment.
However, unlike the District Court, the Sixth Circuit declined
to rule upon whether the Petitioners had stated a valid state
constitutional law claim; instead, the Sixth Circuit affirmed
only the District Courts finding that laches barred Petitioners’

Case.

9
REASONS FOR GRANTING THE WRIT

I. THE PETITION SHOULD BE GRANTED
BECAUSE THE SIXTH CIRCUIT OPINION
BELOW IS IN DIRECT CONFLICT WITH THE
SEVENTH CIRCUIT REGARDING THE
APPLICATION OF THE ALL WRITS ACT, 28
U.S.C. § 165l(a), TO OBTAIN FEDERAL
JURISDICTION OVER NON-PARTIES _ IN
ORDER TO PROTECT THE INTEGRITY OF A
FEDERAL CONSENT DECREE.

Petitioners request this Court to grant this Petition
because the Sixth Circuit opinion below is in direct conflict
with the Seventh Circuit regarding the application of the All
Writs Act, 28 U.S.C. § 1651(a), to obtain federal jurisdiction
over non-parties in order to protect the integrity of a federal
consent decree.

In affirming the’ District Court's denial of the
Petitioners’ Motion for Remand based upon the All Writs
Act, 28 U.S.C. § 1651(a), the Sixth Circuit held that:

We also agree that the district court correctly
invoked 28 U.S.C. § 1651(a), that All Writs
Act, which gives federal court the authority to
remove an otherwise unremovable state court
case in order to effectuate and prevent the
frustration of orders it has previously issued in
its exercise of jurisdiction otherwise obtained.
In re Agent Orange Prod. Liab. Litig., 996
F.2d 1425, 1431 (2nd Cir. 1993) (internal
quotation marks omitted).

App. A at Sa. However, contrary to the District Court's
Opinion and the Sixth Circuit's affirmation, the All Writs Act
is not a vehicle for establishing federal court jurisdiction. As
stated in Mongelli v. Mongelli, 849 F.Supp. 215 (S.D.N-Y.
1994), in declining to rely on the All Writs Act and thereby
holding the court lacked subject matter jurisdiction, the All
Writs Act is not a catch-all statute granting jurisdiction when
all else fails. Mongelli, supra. at 220. Or as this Court has
held:
Although that Act empowers federal

courts to fashion extraordinary remedies when

the need arises, it does not authorize them to

issue ad hoc writs whenever compliance with

statutory procedures appears inconvenient or

less appropriate.

Pennsylvania Bureau of Correction v. United States
Marshals Serv., 474 U.S. 34, 43 (1985). Most importantly,
the All Writs Act does not provide an independent basis of
jurisdiction; it can aid, but it cannot be relied upon as the sole
and singular basis of federal jurisdiction. Hillman v. Webley,
115 F.3d 1461 (10th Cir. 1997); Auburn Medical Center, Inc.
v. Peters, 953 F.Supp. 1518 (M.D. Ala. 1996).

Here, the Petitioners have asserted a s'ngle state
constitutional taxation claim. The state constitutional
provision at issue, the Headlee Amendment, Mich. Const.
1963, art. 9, § 31, was enacted to insure that certain
procedural and constitutional requirements are met before any
tax may be assessed, collected and/or levied against a
Michigan taxpayer. Taxpayers Allied for Constitutional
Taxation v. Wayne County, 537 N.W.2d 596, 450 Mich. 119
(1995). Application of the Headlee Amendment will not
interfere or set aside the District Courts Consent Decree or

i — ee —

Final Judgment. It is the assessment and levy of a municipal
tax by the Respondents to pay the amounts owed under the
Wayne County Final Judgment which is the core of
Petitioners’ claim. As the Petitioners’ Headlee Amendment
claim does not depend upon a question of federal law and a
jury can reach a finding as to the violation of the
constitutional provision without addressing a federal statute,
the Petitioners’ suit is not removable. Thompson v. Merrell
Dow Pharmaceuticals Inc., 766 F.2d 1005 (6th Cir. 1985).

Since there exists no independent basis for federal
court jurisdiction of the Petitioners’ state constitutional law
claim, the All Writs Act cannot be utilized to remove
Petitioners’ case. Briefly, however, the Petitioners’ respond to
the lower court's reliance on /n re Agent Orange Product
Liability Litigation, 996 F.2d 1425 (2nd Cir. 1993), for the
proposition that the All Writs Act supports removal of the
Petitioners’ Complaint.

In re Agent Orange Product Liability Litigation
involved an attempt by the plaintiff, who was an unnamed
class member in a federal court class action, to circumvent
the federal class action court settlement by filing suit in state
court.” The plaintiff, who never opted out of the federal class
action, souvht to re-litigate the same issues that were fully
decided upon by the federal class action.

[he Second Circuit found that "[a] review of the
arguments, orders and judgment in Agent Orange | makes it
crystal clear that the court in fact did determine the central
issue [raised by the plaintiff)". /n re Agent Orange Product

Unlike the plaintiff in /n re Agent Orange Product Liability
Litigation, the Petitioners were not parties or in privity with any of the

parties to the Consent Decree in the Wayne County case

| =)

~_

Liability Litigation, supra. at 1432. Based upon this finding,
the Second Circuit upheld the district court's ruling that
federal jurisdiction was proper under the All Writs Act.
However, the Second Circuit was quick to point out the
limitations associated with the All Writs Act in obtaining
federal jurisdiction over state law claims: "In so holding, we
are not unmindful of the fact that the All Writs Act is not a
jurisdictional blank check which district courts may use
whenever they deem it advisable." /n re Agent Orange
Product Liability Litigation, supra. at 143}.

This case, instead, should be controlled by
Application of County Collector of Winnebago County, 96
F.3d 890 (7th Cir. 1996), as the two cases factually and
legally parallel each other. The plaintiffs in Winnebago
County challenged in state court the constitutional authority
of their local governmental officials who had imposed a local
tax in violation of the state constitution. The funds raised by
the alleged unconstitutional tax were to be applied as
payment on a federal consent decree. Much like in this case,
the enforcement of the plaintiffs’ state constitutional claim
would not set aside the federal consent decree, nor would it
undermine issues previously litigated and decided upon in the
previous federal court case. In reversing the district court's
application of the All Writs Act to obtain jurisdiction over the
plaintiffs’ state constitution case filed in state court, the
Winnebago County court held:

{[I]n a case such as this where a consent
decree was entered without findings of
liability or necessity, the All Writs Act does
not permit the removal of a third-party action
claiming that a party to the consent decree
acted without authority under state law.

13

Winnebago County, supra. at 901-902.

In contradiction to the express limitations to the All
Writs Act espoused by the Seventh Circuit, the District Court
and the Sixth Circuit utilized the All Writs Act simply to
preclude a collateral attack on a local tax as unconstitutional
pursuant to the Headlee Amendment to the Michigan
Constitution; the All Writs Act should not be used to hide the
Respondents agreement to violate the Michigan Constitution.
Therefore, because of the overwhelming factual similarities
and the divergent legal positions between the Sixth and
Seventh Circuits, this Court must grant this Petition in order
to rectify the conflict.

fl. THE PETITION SHOULD BE GRANTED
BECAUSE THE SIXTH CIRCUIT WAS
WITHOUT AUTHORITY WHEN IT UPHELD
THE FINDING OF FEDERAL JURISDICTION
OVER A THIRD PARTY STATE
CONSTITUTIONAL LAW CLAIM FILED IN
STATE COURT SO AS TO PROTECT THE
INTEGRITY OF A FEDERAL CONSENT
DECREE, TO WHICH THE PETITIONERS
WERE NOT A PARTY, ABSENT STATUTORY
AUTHORITY.

Petitioners request this Court grant their Petition
because the Sixth Circuit was without authority when it
upheld the finding of federal jurisdiction over a third party
state constitutional law claim filed in state court so as to
protect the integrity of a federal consent decree, to which
Petitioners were not a party, absent statutory authority. In
finding federal jurisdiction, the Sixth Circuit held:

14

The district court correctly noted that
implementation and enforcement of
compliance with the 1994 consent decree gave
it continued jurisdiction over the financing
agreements that constituted an integral part of
the order, citing Vanguards of Cleveland y.
City of Cleveland, 23 F.3d 1013, 1018 (6th
Cir. 1995). The court further found that the
instant lawsuit poses an imminent threat to the
integrity of the Financing Orders because it
could affect the financing mechanism in those
orders. We agree.

App. A at 4a, However, the lower court's reliance on
Vanguards of Cleveland for this proposition as applied in this
case is misplaced and unfounded.

The court in Vanguards of Cleveland never addressed
whether a district court could obtain federal jurisdiction over
a non-party's state constitutional law claim filed in state court
in order to effectuate a federal court consent decree never
agreed to by the state court plaintiffs. Instead, the focus of
Vanguards of Cleveland was on the authority the federal
courts have in modifying consent decrees. By applying the
rules pertaining to modification of consent decrees as
between parties to obtain jurisdiction over non-parties, as
occurred in this case, the Bylinski lower courts excessively
expanded federal court jurisdiction and significantly distorted
the holding in Vanguards of Cleveland.

Notwithstanding the fact that Vanguards of Cleveland
never touched upon the issue at hand. the foundation against
the extension of federal jurisdiction based upon a consent
decree, absent statutory authority, can be found in the

15

Vanguards of Cleveland opinion. According to the
Vanguards of Cleveland court, "[o]nce approved, the
prospective provisions of the consent decree operate as an
injunction.” Vanguards of Cleveland, supra. at 1018
(quoting Williams v. Vukovich, 720 F.2d 909, 920 (6th Cir.
1983)). And, it is because of the "injunctive quality" of the
consent decree that enables the court to retain jurisdiction
over the enforcement of the consent decree. Vanguards of
Cleveland, supra.

However, the courts injunctive authority is not
unlimited. It has long been held that "one is not bound by a
judgment in personam in a litigation in which he is not
designated as a party or to which he has not been made a
party by service of process." Martin v. Wilks, 490 U.S. 755,
761-762 (1989) (citations omitted). Similarly, an injunction
can have no force or effect upon one not a party to a legal
proceeding. F.R.C.P. 65(1)(d); Chase National Bank v. City
of Norwalk, 291 U.S. 431 (1934). The principle of limited
federal jurisdiction was best summarized by Judge Learned
Hand in Alemite Mfg. Corp. v. Staff, 42 F.2d 832 (2nd Cir.
1930). According Judge Hand:

[Njo court can make a decree which

will bind any one but a party; ... It cannot
lawfully enjoin the world at large, no matter
how broadly it words it decree. . . . It is not

vested with sovereign powers to declare
conduct unlawful; its jurisdiction is limited to
those over whom it gets personal service, and
who therefore can have their day in court.

Alemite Mfg. Corp., supra. at 832-833 (quoted in Swetland v.
Curry, 188 F.2d 841, 843 (6th Cir. 1981)).

16

The fact that a consent decree is at issue Joes not alter
this basic principle. "Consent decrees are contracts. Their
force comes from the agreement of the parties, not from the
statute on which the complaint was based." Dunn v. Carey,
808 F.2d 555, 559 (7th Cir. 1986) (citing Firefighters Local
93 v. City of Cleveland, 478 U.S. 501 (1986)). As this Court
held in Martin, supra., "{a] voluntary settlement in the form

of a consent decree between one group... cannot possibly
settle, voluntarily or otherwise, the conflicting claims of
another group . . . who did not join in the agreement."

Martin, supra. at 2188; See also Dunn v. Carey, 808 F.2d
555, 560 (7th Cir. 1986) ("Third parties, not even colorably
bound by the decree, also should be able to challenge the
authority of the person assenting to the decree."). "While
parties can settle their litigation with consent decrees, they
cannot agree to ‘disregard valid state laws’, (citations
omitted), and cannot consent to do something together that
they lack the power to do individually." Perkins v. City of
Chicago Heights, 47 F.3d 212, 216 (7th Cir. 1995)

This limitation of federal jurisdiction, even when the
court is attempting to protect the integrity of a consent decree,
was emphasized in Winnebago County, supra. As previously
noted, the Winnebago County plaintiff tax objectors filed suit
in state court alleging violations of Illinois state constitutional
tax law by the defendant school district, seeking a refund of
all taxes illegally collected by the defendant. "he taxes were
levied by the school district under the direction of a federal
court consent decree, entered in a previous case, which
sought to remedy alleged racial discrimination in the school
district; the plaintiff tax objectors were not a party to the
federal district court case.

17

The principal argument of the tax objectors was that
the school district did not have the authority to levy the
"consent decree" tax. The school district responded by
removing the plaintiffs’ state case. The federal district court
held that it had jurisdiction over the state law tax case
"because the state tax cases could effectively frustrate the
school district's implementation of the consent decree entered
in the discrimination lawsuit." Winnebago County, supra. at
892. The Seventh Circuit disagreed with the lower court.
According to the Seventh Circuit, "the tax objectors who
were not parties to the consent decree, are not bound by the
consent decree and are entitled to 'their own day in court’ to
challenge actions taken under the decree." Winnebago
Ceunty, supra. at 895 (citing Martin, supra. at 762). Asa
result, the Seventh Circuit held that:

Because a consent decree's force
comes from agreement rather than positive
law, the decree depends on the parties
authority to give assent... . Third parties, not
even colorably bound by the decree, .. .
should be able to challenge the authority of the
person assenting to the decree. Some rules of
law are designed to limit the authority of
public officeholders, to make them return to
other branches of government or to the voters
for permission to engage in certain acts. They
may chafe at these restraints and seek to evade
them; if they do, the people for whose
protection the restraints were created are
entitled to repair to the forums designed to
hear arguments that officeholders have acted
without authority.

Dube ae clean

18
Winnebago County, supra. at 901.

This extension federal jurisdiction to cover
non-parties when such non-parties conduct "poses an
imminent threat to the integrity of the [Consent Decree]"*
directly conflicts with the "injunctive quality"’ that govern the
court's authority over a consent decree. For this reason, this
Petition should be granted so that this Court can reaffirm the
basic principals of the court's authority over the enforcement
of a consent decree and thereby restrict the expansion of
federal jurisdiction absent statutory authority.

App. A at Sa.
Vanguards of Cleveland, supra. at 1018.

19
CONCLUSION

(he jurisdiction issues in this case provide the Court
with an excellent opportunity in which to clarify the
jurisdictional limitations placed upon the federal court's
enforcement of federal consent decrees. If the lower court's
opinions are allowed to stand unabridged, the potential for
further abuses by state governmental parties in using a federal
consent decree, and the power of the federal courts, when
compliance with state constitutional and statutory limitations
of their authority is inconvenient, will definitely increase. By
granting this Petition, the Court can not only prevent such
future abuses, but also rectify the direct conflict between the
Sixth and Seventh Circuits as to the application of the All
Writs Act to obtain federal jurisdiction over non-parties in
order to protect the integrity of a federal consent decree. In
doing so, this Court can reaffirm the basic principle of limited
federal jurisdiction. As such, Petitioners respectfully request
that their Petition for writ of certiorari be granted.

Respectfully submitted,

MACUGA, SWARTZ
and LIDDLE, P.C.

JOHN D. SWARTZ
PETER W. MACUGA I
Attorneys for Petitioners
615 Griswold, Suite 1520
Detroit, MI 48226

Dated: April 26, 1999
(313) 965-0045

la
GLORIA BYLINSKI et al., Plaintiffs-Appellants, v. THE
CITY OF ALLEN PARK et al., Defendants-Appellees.

No. 98-1725

UNITED STATES COURT OF APPEALS FOR THI
SIXTH CIRCUTI

1999 U.S. App. LEXIS 1221
January 25, 1999, Filed*
DISPOSITION: AFFIRMED.

COUNSEL: For GLORIA BYLINSKI, ALLAN COLLINS,
DENNIS COATES, STEVEN HOLIDAY, SANDRA
HOLIDAY, RICHARD PRESSEY, JIMMY SEACRIST,
MOLLY SEACRIST, GLORIA D. BELLMAN, ANISI
PIERCE, DOUGLAS HAMMAR, ROBIN HAMMAR,
ROBERT G. JARRELL, Plaintiffs - Appellants: Peter W
Macuga, Il, Macuga, Swartz & Little, Detroit, MI.

For THE CITY OF ALLEN PARK, CITY OF LINCOLN
PARK, CITY OF RIVER ROUGE, CITY OF SOUTHGATE,
CITY OF TAYLOR, MICHIGAN, Defendants - Appellees
Charles N. Raimi, R. Craig Hupp, Bodman, Longley &
Dahling, Detroit, MI.

* This was originally issued as an “unpublished decision"
filed on January 25, 1999. On March 5, 1999, the court
designated the opinion as one recommended for full-text
publication.

a... ———— sii, i a a

2a
For CIETY OF ECORSE, Defendant - Appellee: R. Craig
Hupp, Bodman, Longley & Dahling, Detroit, MI.

For THE CITY OF ALLEN PARK, Defendant - Appellee:
Kenneth D. Kruse, Allen Park, MI.

For CITY OF ECORSE, Defendant - Appellee: Victor 1.
Mitea, laylor, MIL.

For CITY OF LINCOLN PARK, Defendant - Appellee:
t-dward M. Zelenak. Lincoln Park, MI.

For CITY OF RIVER ROUGE, Defendant - Appellee: David
A. Bower, River Rouge, MI.

For CITY OF SOUTHGATE, Defendant - Appellee: John F.
Gilhool, Southgate, MI.

For CIEY OF TAYLOR, MICHIGAN, Defendant - Appellee:
Carl B. Downing, Sommers, Schwartz. Silver & Schwartz.
Southfield, MI.

JUDGES: BEFORE: NELSON, SILER, and DAUGHTREY,

Circuit Judges

OPINION: PER CURIAM. This class action suit was brought
originally in state court by a group of disgruntled taxpayers
secking a refund of taxes paid and an injunction against
further taxation by the defendant municipalities, based on the
plaintitfs’ claim that the defendants lacked authority to levy
taxes without the referendum required by a recent amendment
to the Michigan state constitution. The defendants removed
the action to federal court, on the ground that the taxes in
question had been levied pursuant to a federal consent decree
entered four years earlier. Because the district court found

that it had continuing jurisdiction under the consent decree,

3a
the court denied the plaintiffs’ motion to remand to state
court and granted summary judgment to the defendants on the
merits. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

In 1994, the district court entered a consent decree in an
action brought by the State of Michigan and the United States
Environmental Protection Agency under the Clean Water
Act, 33 U.S.C. §§ 1251 et seq., to remedy illegal discharges
of raw sewage and other pollutants into Michigan waterways.
Pursuant to that decree, Wayne County and certain
down-river communities were directed to make cash
contributions to a fund to update wastewater treatment
facilities. The decree also effectively provided that
communities unable to make the mandated paymeuts would
be required to increase taxes in order to meet their
assessments. When a number of the municipalities were
forced to levy taxes to ensure compliance with the court
order, the citizen plaintiffs initiated this suit in Michigan state
court for a refund of their increased tax payments and to
enjoin further tax collections. The suit, however, was not
filed until four years after entry of the consent decree in the
federal action and three years after implementation of the
actual tax levies. By that time, the renovation projects were
85 percent completed or contracted, and approximately $ 220
million in bonds had already been sold.

lhe defendant communities successfully removed the suit to
federal court, alleging that the subject matter of the state
court action was inextricably intertwined with the viability of
the district court's 1994 consent decree. The district court
granted summary judgment in favor of the defendants on the
taxpayers’ claims that the tax levies violated provisions of the
Michigan constitution, finding (1) that the challenge to the
constitutionality of the tax levies was barred by laches, (2)

aii ' =
EB

da
that the court had inherent power to enforce its judgments,
and (3) that the Michigan state constitutional provision
invoked by the plaintiffs was not applicable to the tax levies
in question, because they were authorized under state statutes
that predated the amendment to the state constitution.

ANALYSIS

Before this court, the plaintiffs contend that the district court
erred both in denying their motion for remand and in ordering
the municipalities to raise taxes without a vote of the
citizenry, allegedly in violation of a "tax revolt" provision of
the state constitution.

A. Jurisdiction

The district court correctly noted that implementation and
enforcement of compliance with the 1994 consent decree
gave it continued jurisdiction over the financing agreements
that constituted an integral part of the order, citing Vanguards
of Cleveland v. City of Cleveland, 23 F.3d 1013, 1018 (6th
Cir. 1994). The court further found that the instant suit "poses
an imminent threat to the integrity of the Financing Orders
because it could adversely affect the financing mechanism in

those orders." We agree.

We also agree that the district court correctly invoked 28
U.S.C. § 1651(a), the All Writs Act, which gives federal
courts the "authority to remove an otherwise unremovable
State court case in order to effectuate and prevent the
frustration of orders it has previously issued in its exercise of
jurisdiction otherwise obtained." In re Agent Orange Prod.
Liab. Litig., 996 F.2d 1425, 1431 (2d Cir. 1993) (internal
quotation marks omitted). It follows that the district court did
not err in denying the plaintiffs’ motion to remand to state

court.

-

a

B. Application of the Doctrine of Laches

In a detailed and well-reasoned opinion, the district court
ordered summary judgment for the defendants on three
alternative bases. Because we conclude that the challenge to
the consent decree is barred by the doctrine of laches, we find
it unnecessary to reach the question of the district court's
inherent authority to order the levy of taxes in this case, and
we decline to interpret the scope of the Michigan
Constitution, an exercise better left to the Michigan state
courts.

The doctrine of laches is an equitable principle that bars
recovery in circumstances in which a plaintiff's delay in
seeking a judicial remedy prejudices a defendant. To prevail,
a party invoking this equitable principle "must show that
plaintiffs unreasonably delayed in bringing suit and that
[defendants] were prejudiced by this delay." Environmental
Defense Fund v. Tennessee Valley Auth., 468 F.2d 1164,
1182 (6th Cir. 1972). In this case, the district court found that
the plaintiffs had waited to initiate their action until after the
municipal bonds to finance the court-ordered sewer project
had been authorized, issued, and sold. As noted above, by the
time the hearing occurred, the project was 85 percent
complete, at a cost of over $ 200 million. The court further
found that the plaintiffs had had ample notice of the
defendants’ intent to implement the consent decree through
the financing agreements contained in that order and yet did
not file suit until three years after they received their first
assessment. Finally, the court found that the defendants were
obviously prejudiced by the delay, given the outlay of funds
already expended and the near-completeness of the entire
project. With this conclusion, we also agree.

CONCLUSION

6a

After a careful review of the briefs and the record in this case,
and having had the benefit of oral argument, we are not
persuaded that the district court erred in retaining jurisdiction
and in deciding that the action was barred by laches.
Moreover, because the reasons for dismissing the complaint
against the defendants were fully articulated in the district
court's opinions, we conclude that the issuance of another
detailed opinion is unnecessary to the correct determination
of this appeal. We therefore AFFIRM the judgment of the
district court, as provided in its order and opinion denying
plaintiffs’ motion to remand, dated June 9, 1998, and its
opinion and order granting defendants’ motion for summary
judgment of the same date.

7a

GLORIA BYLINSKI, GLORIA BELLMAN, ALLAN
COLLINS, DENNIS COATES, DOUGLAS HAMMAR,
ROBIN HAMMAR, SANDRA HOLIDAY, STEVEN
HOLIDAY, ROBERT JARRELL, ANISE PIERCE,
RICHARD PRESSEY, JIMMY SEACRIST, and MOLLY
SEACRIST, and all other persons similarly situated,
Plaintiffs, v. CITY OF ALLEN PARK, a Michigan municipal
corporation, CHARTER TOWNSHIP OF BROWNSTOWN,
a Michigan municipal corporation, CITY OF ECORSE, a
Michigan municipal corporation, CITY OF LINCOLN
PARK, a Michigan municipal corporation, CITY OF RIVER
ROUGE, a Michigan municipal corporation, CITY OF
ROMULUS, a Michigan municipal corporation, CITY OF
SOUTHGATE, a Michigan municipal corporation, CITY OF
TAYLOR, a Michigan municipal corporation, Defendants.

Civil Action No. 98-71289

UNITED STATES DISTRICT COURT FOR’ THE
EASTERN DISTRICT OF MICHIGAN, SOUTHERN
DIVISION

June 9, 1998, Decided
June 9, 1998, Filed

COUNSEL: For Plaintiffs: Peter W. Macuga, II, Rene S.
Roupinian, Macuga, Swartz and Liddle, Detroit, MI.

For Cities of Allen Park, Ecorse, Lincoln Park, River Rouge,
Romulus, Southgate and Taylor, Defendants: R. Craig Hupp.
Charles N. Raimi, Bodman, Longley & Dahling, Detroit, MI.

For City of Lincoln Park, Defendant: Edward M. Zelenak,
Lincoln Park, MI.

Sa
For City of Taylor, Defendant: Patrick B. McCauley,
Sommers, Schwartz. Silver & Schwartz, Southfield, MI.

For City of Ecorse, Defendant: Victor T. Mitea, Taylor, MI.

For City of Southgate, Defendant: John F. Gilhool,
Southgate, MI.

For City of Allen Park, Defendant: Kenneth D. Kruse,
Pagnucco, Kruse & Tamsen, Allen Park, MI.

For City of River Rouge, Defendant: David A. Bower, River
Rouge, MI.

JUDGES: John Feikens, United States District Judge.
OPINIONBY: John Feikens

OPINION: OPINION AND ORDER GRANTING
DEFENDANTS' MOTION FOR SUMMARY JUDGMENT

l INTRODUCTION

Plaintiffs Bylinski et al., representative taxpayers in
defendant municipalities, bring this action against defendants
City of Allen Park et al. to obtain a refund of and to enjoin
further collection of property taxes imposed by the
municipalities pursuant to a consent decree entered by me on
May 12, 1994. United States v. Wayne County, 1994 U.S.
Dist. LEXIS 18775, Civil Action No. 87-70992 (E.D. Mich.
1994) ("Wayne County"). The Wayne County consent decree
references the structure of the Downriver Sewage Disposal
System 1994 Financing Plan and Final Judgment Re: 1994
Court-Ordered Improvements ("Plan"). It is a comprehensive
scheme of sewer improvements intended to bring these

9a
defendant municipalities into compliance with the Clean
Water Act, 33 U.S.C. §§ 1251 et seq.

In 1987, the United States Environmental Protection Agency
(EPA) and the Michigan Department of Natural Resources
(now MDEQ) brought the Downriver Sewer Case (Wayne
County) against Wayne County, owner and operator of the
Wyandotte Wastewater Treatment Plant (WWTP). These
regulatory agencies added the local government units of
thirteen municipalities served by the WWTP. the
Southgate-Wyandotte Relief Drainage District, and the
Ecorse Creek Pollution Abatement Drain (collectively the
“Downriver Communities") as defendants in an amended
complaint. Defendant municipalities in the current case are
among the Downriver Communities in Wayne County. nl
The WWTP is operated by Wayne County pursuant to a
contract with the Downriver Communities dated March 1.
1962 (as amended from time to time).

[he EPA and MDEQ alleged that the WWTP violated the
provisions of the Federal Clean Water Act, 33 U.S.C. §§
1251 et seq., and the Michigan Water Resources Commission
Act, M.C.L. §§ 323.1 et seq., and that the wastewater flows
from the Downriver Communities were a major contributing
factor in the failure of the WWTP to comply with these Acts.
[he parties engaged in a court-supervised process to study,
design, construct, and fund sewer system improvements
intended expeditiously to protect public health and to bring
WWTP operations into compliance with the mandates of the
Federal Clean Water Act and the Michigan Water Resources
Commission Act. A monitor and a special master oversaw the
process to insure adequate progress toward achieving project
goals, and to report to the court.

In resolution of the claims in Wayne County, I entered a
Consent Decree (dated February 11, 1994) approving the

10a
agreement between the Wayne County parties. n2 | also
entered an order approving the Plan (dated May 12, 1994,
effective March 14, 1994). The Plan defines the process by
which the improvements constructed pursuant to the Consent
Decree will be financed. In paragraph nine of the Wayne
County judgment I stated:

Need for the Improvements. This Court
specifically finds, based on its review of
applicable law and the Project Plan, that (1) the
improvements are needed to comply with the
Federal Water Pollution Control Act and Act
245; and (ii) the installation, construction,
alteration, improvement and operation of the
Downriver Sewage Disposal System, as
described with the improvemenis, have been
ordered in accordance with the Consent
Decree, Act 320, Act 245, and the Federal
Clean Water Act.

In their complaint in this action, plaintiffs falsely stated:
"There is no other pending or resolved civil action arising out
of the transaction or occurrence alleged in this complaint."
Notwithstanding that statement, plaintiffs seek to enjoin
defendants’ compliance with the Plan. Ignoring the Wayne
County order of May 12, 1994 forbidding litigation of this
type, and ignoring the provisions of the Consent Decree
reserving continuing jurisdiction of this court in all matters
pertaining to the Consent Decree, they brought this action in
state court. Defendants removed the case to this court.
Plaintiffs claim that property taxes imposed by the
municipalities to satisfy the mandates in the Plan are illegal
and unconstitutional because the mandates in the Plan run
counter to the Headlee amendment to the Michigan
Constitution in that the taxes imposed by the defendant
communities exceed limits set by state law. They contend that

lla
because defendants levy these taxes without the approval of a
majority of the qualified voters of the applicable local unit of
government, they are not proper levies.

The Headlee amendment states: "Property taxes and other
local taxes and state taxation and spending may not be
increased above the limitations specified herein without
direct voter approval. . . ." MICH. CONST. of 1963, art. 9, §
25 (amended 1978). Article 9. §§ 26-34 of the Michigan
Constitution implements the Headlee amendment. The key
section states:

Units of Local Government are hereby
prohibited from levying any tax not authorized
by law or charter when this section is ratified
or from increasing the rate of an existing tax
above that rate authorized by law or charter
when this section is ratified, without the
approval of a majority of the qualified electors
of that unit of Local Government voting
thereon... .

MICH. CONST. of 1963, art. 9. § 31 (amended 1978),

Plaintiffs seek enforcement of their contentions by summary
judgment. Defendants reply that plaintiffs' claims are barred
by laches, that the Headlee amendment does not apply
because the taxes at issue are levied pursuant to statutes that
predate that amendment and are levied pursuant to this court's
approval of the Consent Decree, and that this court has
inherent power to enforce the Consent Decree and the Plan by
ordering these local government units to levy taxes, even if
these taxes exceed state Statutory or constitutional limits.

Defendants also move for summary judgment. I address
defendants’ motion for summary judgment first.

CN

l2a
Il. SUMMARY JUDGMENT STANDARD

Summary judgment must issue when there is no genuine
issue as to any material fact, based on the pleadings,
depositions, answers to interrogatories, admissions of the
parties, and any affidavits. FED. R. CIV. P. 56(c); Celotex
Corp. v. Catrett, 477 U.S. 317, 322, 91 L. Ed. 2d 265, 106 S.
Ct. 2548 (1986); Matsushita Elec. Indus. Co. v. Zenith Radio
Corp., 475 U.S. 574, 585-86, 89 L. Ed. 2d 538, 106 S. Ct.
1348 (1986). Movants have the burden of proving there is no
genuine issue of material fact. Id. Once movants meet this
burden, nonmovants "must set forth specific facts showing
that there is a genuine issue for trial." FED. R. CIV. P. 56(e).
Where movants bring a motion for summary judgment,
although the trial court views the evidence in a light most
favorable to nonmovants, Terry Barr Sales Agency, Inc. v.
All-Lock Co., 96 F.3d 174, 178 (6th Cir. 1996) (citation
omitted), nonmovants must nonetheless present significant
probative evidence to support their claim. Anderson v.
Liberty Lobby, Inc., 477 U.S. 242, 249, 91 L. Ed. 2d 202.
106 S. Ct. 2505 (1986). "The mere existence of a scintilla of
evidence in support of the [nonmovants'] position will be
insufficient; there must be evidence on which the jury could
reasonably find for [nonmovants]." Anderson, 477 U.S. at
252.

Ill. ANALYSIS

Defendants seek summary judgment based on three legal
premises: (a) laches; (b) the tax levy is not subject to the
provisions of the Headlee amendment because the effective
dates of the statutes pursuant to which the levy is imposed
predate the effective date of that amendment; and (c) federal
courts have inherent power to order local government units to
levy taxes to pay their debt obligations, even if those taxes

:

l3a

exceed state statutory or constitutional tax limits. | address
this court's inherent power first.

A. Federal court's inherent power to order local government
| unit to levy tax.

In my approval of the Plan, I ordered the Downriver
Communities to pay their share costs in cash. However, the
order also stated that in the event any community failed to
pay in cash, the Plan provides a procedure by which the
community's assessing officer shall assess the judgment
payments in accordance with M.C.L. § 600.6093. The
defendant municipalities in this case did not pay their share
costs in cash. Therefore, under the terms of the Plan pursuant
to court order, these communities were obligated to levy
taxes to pay their share costs.

In City of Detroit v. City of Highland Park, 878 F. Supp. 87
(E.D. Mich. 1995), I held that a local government tax increase
necessitated by a valid federal court judgment is not within
the provisions of the Headlee amendment prohibiting
unauthorized tax increases. Id. at 89. I also held that "state
law cannot prevent a federal judge from enforcing his
judgments." Id.

Plaintiffs' entire case relies on the Michigan Court of
Appeals’ dismissal of these statements in American Axle &
Mfg., Inc. v. City of Hamtramck, 227 Mich. App. 135, 143,
575 N.W.2d 296, 299-300 (1997). In American Axle, the City
of Hamtramck (Hamtramck) appealed from a Michigan Tax
Tribunal order granting summary judgment for American
Axle & Manufacturing, Inc. (American) in American's action
challenging Hamtramck's tax assessment levied under M.C.L.
§ 600.6093. The court in American Axle affirmed the trial
court's decision and stated that despite the ruling in

l4a

Detroit, supra, the lack of analysis of the issue of a judgment
levy raising taxes beyond the constitutionally proscribed
level, along with the [Detroit] court's dismissal of further
analysis with the statement that Michigan law cannot prevent
the enforcement of the federal court's judgment, leads us to
believe that Detroit should be of little persuasive value in this
matter.

American Axle, 227 Mich. App. at 143.

The opinion in American Axle is not controlling and is
inapposite. American Axle refers only to decisions and orders
made by state courts. That court applied state constitutional
limits to the total amount of taxes imposed on property
owners, despite its admission that the Headlee amendment
did not apply to the statute pursuant to which the additional
taxes were imposed. The reasoning in American Axle is
erroneous and clearly inapplicable in cases in which local
government units impose taxes that exceed state
constitutional or statutory limitations, pursuant to federal
court orders. American Axle overlooks and disregards federal
cases that teach thet neither state laws nor state constitutions

control a federal court's application or enforcement of federal
law. In particular, in its dismissal of the reasoning in Detroit,
the court in American Axle failed to address Missouri v.
Jenkins, 495 U.S. 33, 109 L. Ed. 2d 31, 110 S. Ct. 1651
(1990).

In Jenkins, state law authorized the Kansas City, Missouri,
School District to assess local property taxes only up to $
1.25 per $ 100 of property valuation unless a majority of the
voters in the district approved a higher levy, up to a limit of $
3.25 per $ 100. The statute stated that the school district
could assess a levy higher than $ 3.25 only if two-thirds or
more of the voters approved. n3 The United States Supreme
Court held that a federal district court could enjoin the

—..——g——— <i

lSa

operation of state laws or constitutional provisions that
prevented a local government unit from raising property taxes
beyond prescribed limits without an electorate vote, and order
the local government unit to levy taxes adequate to fund its
obligations under a federal court order: "{A] court order
directing a local government body to levy its own taxes is
plainly a judicial act within the power of a federal court."
Jenkins, 495 U.S. at 55 (citing Griffin v. Prince Edward
County Sch. Bd., 377 U.S. 218, 233, 12 L. Ed. 2d 256, 84 S.
Ct. 1226 (1964)). The Court stated:

Griffin followed a long and venerable line of
cases in which this Court held that federal
courts could issue the writ of mandamus to
compel local governmental bodies to levy
taxes adequate to satisfy their debt obligations.
See, e.g., Louisiana ex rel. Hubert v. Mayor
and Council of New Orleans, 215 U.S. 170, 54
L. Ed. 144, 30 S. Ct. 40, . . . (1909); Graham
v. Folsom, 200 U.S. 248, 50 L. Ed. 464, 26 S.
Ct. 245, . . . (1906); Wolff v. New Orleans,
103 U.S. 358, 26 L. Ed. 395, . . . (1881):
United States v. New Orleans, 98 U.S. 381, 25
L. Ed. 225,. . . (1879); Heine v. Levee
Commissioners, 86 U.S. 655, 19 Wall. 655.
657, 22 L. Ed. 223 (1874); City of Galena v.
Amy, 72 U.S. 705, 5 Wall. 705, 18 L. Ed. 560
(1867); Von Hoffman v. City of Quincy, 71

_ U.S. 535, 4 Wall. 535, 18 L. Ed. 403 (186[6});
Board of Commissioners of Knox County v.
Aspinwall, 65 U.S. 376, 24 HOW 376, 16 L.
Ed. 735 (1861).

Jenkins, 495 U.S. at 55-56 (emphasis added). Addressing the
State's argument that even under these cases "the federal
judicial power can go no further than to require local

l6a

governments to levy taxes as authorized under state law." the
Court disagreed and noted that "this argument was rejected as
early as Von Hoffman v. City of Quincy . . . ." Id. at 56: Von
Hoffman v. City of Quincy, 71 U.S. 535, 4 Wall. 535. 18 L.
Ed. 403 (1866)). Finally, the Court stated, "It is . . . clear that
a local government with taxing authority may be ordered to
levy taxes in excess of the limit set by state statute where
there is reason based in the [United States] Constitution for
not observing the statutory limitation." Id. 495 U.S. at 57.

he Consent Decree and orders in Wayne County remedy the
defendant municipalities’ violation of federal law. In oral
argument on the summary judgment motions in this case.
plaintiffs’ counsel asserted that the Headlee amendment must
violate federal law before a federal court may order a
Michigan local government unit to impose taxes that exceed
the limitations imposed by that amendment. That is not
correct. Under Jenkins, when a federal court determines that a
local municipality's actions violate a federal statute that is
based on provisions of the United States Constitution (in this
case defendant municipalities violated the Federal Clean
Water Act, 33 U.S.C. §§ 1251 et seq., enacted by Congress
empowered by provisions in the Constitution), the court may
order a local government unit with taxing authority to levy
taxes adequate to satisfy the municipality's debt obligations
incurred in complying with federal law, even if the taxes
exceed state constitutional and statutory limitations. In other
words, Jenkins permits a federal court to enjoin operation of
state statutes and constitutional provisions prohibiting a local
government unit from levying taxes at a rate above limits set
by state law without majority electorate approval. n4_ Thus.
the defendant municipalities’ tax levies are valid and
enforceable, even if the Headlee amendment would otherwise
apply.

|. Constitutional basis: General health and welfare.

F
oe —

17a

The United States Constitution grants Congress the power to
provide for the general welfare of the United States. U.S.
Const., art. I, § 8, cl. 1. In H.R. REP. No. 89-215 (1965), the
Committee on Public Works, to whom a bill to amend the
Federal Water Pollution Control Act (now known as the
Clean Water Act, 33 U.S.C. §§ 1251 et seq.) to establish the
Federal Water Pollution Control Administration was referred,
Stated:

No more important single problem faces this
country today than the problem of "good
water." Water is our greatest single natural
resource. The issue of pure water must be
settled now for the benefit not only of this
generation but for untold generations to come.
The need for good quality water for all of our
Nation's _uses--public and private--is a
paramount one.

** *

The Committee on Public Works has been
fully aware of this basic problem and from this
committee came the first legislation that
brought into full focus this problem of water
pollution and water quality.

H.R. REP. No. 89-215, at | (1965) (emphasis added). This
states Congress’ intention that this Act protect, and improve,
the general welfare of the United States. In United States v.
Aluminum Co. of Am., 824 F. Supp. 640 (E.D. Tex. 1993),
the court notes that "the objective of the [Clean Water Act] is
to protect human health, welfare, and the environment. to
eliminate the discharge of all pollutants to waters of "eT

the United States, and to restore the chemical. physical, and
biological integrity of the Nation's waters." Id. at 645 (citing

l8a
33 U.S.C. § 1251(a)). Thus, this court's enforcement of the
consent decree to levy taxes to correct water pollutior
problems pursuant to the provisions of the Clean Water Ac
(despite a state statutory limitation on taxation) has <
Constitutional basis, and is valid under the Missouri v.
Jenkins reasoning.

2. Constitutional basis: Commerce Clause.

Congress may use its power under the Commerce Clause to
regulate interstate commerce and any matter that might
significantly impact on interstate commerce, including
pollution of the navigable waters of the United States. U.S.
Const., art. I, § 8, cl. 3; See, e.g., United States v. Holland.
373 F. Supp. 665, 671-73 (M.D. Fla. 1974) (stating Congress
intended to use the full extent of the commerce power under
the Constitution to protect and improve the waters of the
United States). One commentator notes that "federal authority
under the commerce clause is extensive. Activities can be
regulated under the clause because of their effect on interstate
commerce.” FRANK F. SKILLERN, ENVIRONMENTAL
PROTECTION DESKBOOK § 4.04 (2d ed. 1995). This
includes activities resulting in pollution of the waters of the
United States, such pollution having an effect on, or the
potential to effect, interstate commerce. Congress’ commerce
power is another Constitutional basis for this court's
enforcement of a local government unit tax levy to satisfy the
mandates of the Clean Water Act, despite state statutory or
constitutional limitations on taxation.

B. Laches.

Plaintiffs’ claims are also barred by laches. "To demonstrate
laches, a party must establish (1) lack of diligence by the
party against whom the defense is asserted, and (2) prejudice
to the party asserting the defense.”

Apache Survival

19a

(quoting Costello v. United States, 365 U.S. 265. ad 5 1.
Ed. 2d 551, 81 S. Ct. 534 (1961)); S.E.R.. Jobs For Progress,
Inc. v. United States, 759 F.2d 1, 5 (Fed. Cir. 1985);
Environmental Defense Fund v. Tennessee Valley Auth., 468
F.2d 1164, 1182 (6th Cir. 1972) (stating: "To prevail,
appellants must show that plaintiffs unreasonably delayed in
bringing suit and that appellants were prejudiced by this
delay. ..."). "The application of the laches doctrine is within
the sound discretion of the district court." Azalea Fleet, Inc.
v. Dreyfus Supply & Mach. Corp., 782 F.2d 1455. 1458 (8th

7+ doe Fu JV

96 L. Ed. 31, 72 S. Ct. 12 (1951)).

Here, defendants correctly assert that plaintiffs waited to
institute their suit until after bonds had been issued and sold.
Indeed, the project addressed by the Wayne County consent
decree and related orders is 85% compete. Through
publication and public hearings, plaintiffs had ample notice
of defendants’ intentions to finance the project through bond
sales. Yet plaintiffs did not bring this suit until three years
after first being assessed for the cost of the sewer and waste
water treatment improvements, after more than $ 220 million
in bonds had been sold, and after the improvement project
was 85% completed. Plaintiffs’ delay clearly prejudices
defendant municipalities. For this reason. it is inequitable to
enforce plaintiffs’ claims against defendants: they are barred
by laches.

Notably, although Michigan law does not control in this
action, it does apply to plaintiffs’ Headlee amendment claim

and is consistent with federal case law. Michigan law states
that where a plaintiffs claims are untimely, a court may
"refuse to adjudicate on the merits the claims set forth in the
complaint." Eby v. Lansing Bd. of Water & Light, 417 Mich.
297, 306 n.10, 336 N.W.2d 205 (1983) (citing Bigger v. City

20a

of Pontiac, 390 Mich. 1, 210 N.W.2d 1 (1973)). The doctrine
of laches is an equitable principle that bars recovery in
circumstances in which a plaintiff's delay in seeking judicial
remedy prejudices a defendant. "Laches is not the mere
passage of time, but is rather the passage of time combined
with a change in condition which would make it inequitable
to enforce a claim against the defendant." Tray v. Whitney,
35 Mich. App. 529, 536, 192 N.W.2d 628 (1971). However,
statutes of limitation may apply by analogy to equitable
claims. Taxpayers Allied for Constitutional Taxation v.
Wayne County, 450 Mich. 119, 127 n.9, 537 N.W.2d 596
(1995).

Michigan courts have applied the laches doctrine to bar
Headlee claims. See Bigger v. City of Pontiac, 390 Mich. 1,
4-5, 210 N.W.2d 1 (1973) (stating that in cases holding that
in the financing of public projects by municipalities, if
objecting plaintiffs do not resort to the courts "within the
context of the time available for adjudication" and without
delay, courts may refuse to hear the cases); Sessa v. Macomb
County, 220 Mich. App. 279, 286-88, 559 N.W.2d 70 (1996)
(stating that even though plaintiffs brought suit within an
applicable one year statute of limitations pursuant to M.C.L.
§ 600.308a(3), identical to the statute of limitations for
Headlee-type claims. the suit was barred by laches). As
interpreted by the court in Sessa, the preclusive doctrine of
laches, detailed in Bigger, 390 Mich. at 4-5, "is designed to
deal with challenges that could prevent or frustrate public
improvements in general." Sessa, 220 Mich. App. at 286. The
court in Sessa also noted:

An equally important aspect of the Bigger rule
comes into play here where suit was not begun
until after the bonds had been issued and sold
on the open market. The interests of third
parties, the bondholders, who are bona fide

2la

purchasers for value and who, at the time of
purchase, were not on notice of any such
challenge, represents a vested interest that the
entertaining of such litigation on its merits
could defeat. In this regard, therefore, the
Bigger rule is distinct from the statute of
limitations and simply obligates those who
would challenge such action to move
promptly.

Sessa, 220 Mich. App. at 287 (citing Walled Lake Consol.
Sch. Dist. v. Commerce Charter Township, 174 Mich. App.
434, 436-37, 437 N.W.2d 16 (1989)) (emphasis in original).

Sessa noted that although the Bigger rule predates the 1978
Headlee amendment to the Michigan constitution, it is not
undermined by that amendment.

Nothing in the text of Const 1963, art 9, §§
25-34 addresses the Bigger principle or
purports to limit or abolish it in taxpayers [sic]
suits authorized by Const 1963, art 9, § 32 [the
standing/enforcement provision]. The
Legislature has carefully protected taxpayer
interest in this regard, however, in fulfillment
of the mandate of Const 1963, art 9, § 34, by
requiring notice of intent to bond to be
published, MCL 123.958b(3); MSA
5.301(8b)(3).

Sessa, 220 Mich. App. at 287. Bigger applies even if
plaintiff's claim is legal rather than equitable.

That plaintiff couches part of its claim as legal rather than
equitable does not distinguish this case from Bigger. The
import of Bigger is that where a plaintiff seeks to employ the

22a
judicial process to challenge a project duly adopted by the
appropriate government officials, it must do so in a timely
manner. . . . In this instance, waiting for two years to enjoin
the plan's proposed method of collecting revenue or to
compel the payment of revenue to plaintiff is not justified.

Walled Lake Consol. Sch. Dist., 174 Mich. App. at 438.
Thus, both Federal and Michigan laches doctrine bar
plaintiffs’ claims.

C. Tax ievy not subject to the provisions of the Headlee
amendment.

When laches prevents a suit, the court need not consider
constitutional challenges in that case. Thatcher Enterprises v.
Cache County Corp., 902 F.2d 1472, 1475-76 (10th Cir.
1990) (stating that because plaintiffs waited seventeen years
from the time they should have known, and nine years from
the time they actually knew, of the County's actions to make
chalienges to a zoning ordinance, plaintiffs’ constitutional
challenges were barred by laches); Peter Henderson Oil Co.
v. City of Port Arthur, Texas, 806 F.2d 1273, 1275 (Sth Cir.
1987) (stating that because appellants waited over five years
after the cause of action arose to challenge an
unconstitutional delegation, the challenge was barred by
laches); see also Edel v. Filer Township, 49 Mich. App. 210,
211 N.W.2d 547 (1973). I nevertheless address plaintiffs’
constitutional (Headlee amendment) challenges under
Michigan law. n5

In oral argument, plaintiffs’ counsel began with a
misinterpretation of the Headlee amendment, stating that
"Michigan law is clear, at section thirty-one of the Headlee
amendment to [the] Michigan Constitution, that any tax not
in existence on November 7th, 1978, or authorized to exist by
ordinance or statute is unconstitutional if not approved by the

23a

people before imposition and collection." A correct reading
of the Headlee amendment, MICH. CONST. art. 9, § 31
(ratified Nov. 7, 1978, effective Dec. 23, 1978), is that it
prohibits local government units from levying any tax not
authorized by law or charter, and from increasing the rate of
an existing tax above that rate authorized by law or charter,
existing when the amendment was ratified, without approval
of a majority of the electorate of that local government by
vote.

The Headlee amendment "does not apply to taxes imposed
for the payment of principal and interest on bonds or other
evidence of indebtedness or for the payment of assessments
on contract obligations in anticipation of which bonds are
issued which were authorized prior to the effective date of
this amendment." MICH. CONST. art. 9, § 31. The
requirement that the tax be authorized by law or charter
requires only that "a local government be empowered to levy
the tax on the date that the Headlee Amendment was ratified,
even if the local government had not exercised its authority."
Bailey v. Muskegon County Bd. of Comm'rs. 122 Mich. App.
808, 821, 333 N.W.2d 144 (1983) (emphasis in original).

If Michigan law controlled in this case, the Headlee
amendment would still not apply to the taxes levied because
the levies are authorized by Act 320 (the Court Order Bond
Act), amended and recodified as M.C.L. § 324.4307, and Act
326 (the Judgment Levy Act), amended and codified as
M.C.L. § 600.6093. Both statutes were in effect before
ratification of the Headlee amendment. The 1994 Financing
Order and Final Judgment Plan and Consent Decree in the
Wayne County case make explicit reference to these statutes.

i. Act 320 (M.C.L. § 324.4307) predates the Headlee
amendment.

24a

The Headlee amendment does not apply because Act 320
predates it. The Court Order Bond Act (Act 320), M.C.L. §
324.4307, was originally enacted in 1927, long before
ratification of the Headlee amendment. M.C.L. § 324.4307
empowers the defendants in this case to levy taxes for the
purposes enumerated in the Wayne County 1994 Financing
Plan and Final Judgment (sewage system and water treatment
facilities construction, improvements, and operation). That
defendants did not actually levy taxes until some date after
ratification of the Headlee amendment is irrelevant.

Defendant municipalities were authorized by law to impose
such a tax prior to ratification of that amendment. Thus, by
the terms of both the Headlee amendment and M.C.L. §
324.4307 the taxes levied in this case are not subject to
Headlee amendment restrictions.

The tax assessments levied against property owners in the
defendant municipalities are imposed pursuant to Act 320.
The Plan and Consent Decree make explicit reference to Act
320 as a statute pursuant to which the taxes at issue would be
imposed:

The Court may enter as required an order pursuant to said Act
320 regarding the terms and conditions of the contracts,
bonds and other documents to be executed and delivered by
the legislative bodies of Defendant in accordance with this
paragraph, provided such order in no way alters, modifies, or
conflicts with the deadlines, obligations, or items set forth in
this Decree or set forth by applicable federal or state law.

Wayne County Consent Decree, Section XIV, Funding P 49
(emphasis added). The Wayne County and Downriver
Communities financing resolutions reference this statute.
"WHEREAS, Wayne [County] proposes to authorize the
issuance of the Bonds, pursuant to Act 320 in anticipation of

25a
and secured payments by the Judgment payments . . . and
other things necessary to the authorization [**28] and
issuance of the Bonds under Act 320 having been provided
for... ." Wayne County Resolution 94-81, pp. 3-4 (February
17, 1994).

Act 320, M.C.L. § 324.4307, permits local government units
to issue and sell the necessary bonds to fund "construction,
installation, alteration, operation, or improvement, including
the treatment works, and other facilities" of a "sewage
system, solid waste facility, or waterworks system." M.C.L. §
324.4307(1).

The amount of the bonds either issued or outstanding shall
not be included in the amount of bonds which the local unit
or units of government are authorized to issue under any
statutes of this state or charters. Local units of government
issuing bonds under this section may raise a sum annually by
taxation as the legislative body or respective legislative
bodies consider necessary to pay interest on the bonds, and to
pay the principal as it falls due. The annual amount may be in
excess of the authorized annual tax rate fixed by the statutes
or charters.

M.C.L. § 324.4307(1) (emphasis added). This section also
states: "Court ordered bonds do not require approval of the
electors . . . . Bonds other than court ordered bonds issued
under this part require approval of the electors at a general or
special election only if an appropriate petition is filed in
accordance with the law." M.C.L. § 324.4307(2). Thus, not
only is the funding scheme in the Consent Decree authorized
by this statute, it is also specifically exempted from Headlee
amendment requirements. Voter approval is not required
under circumstances in which local government units,
pursuant to court order and this statute, issued and sold bonds

26a
to fund sewage and water works system improvements to
effectuate compliance with federal law.

2. Act 236 (M.C.L. § 600.6093) predates the Headlee
amendment.

The Headlee amendment does not apply because Act 236
predates it. The Judgment Levy Statute, Act 236. originally
enacted in 1963, and later amended, empowers municipalities
to assess taxes necessary to pay judgments against the
municipalities or officers of the municipalities in their name
of office. M.C.L. § 600.6093. The statute predates the
Headlee amendment, and therefore is not controlled by the
restrictions of that amendment. See City of Detroit v. C ity of
Highland Park, 878 F. Supp. 87, 89 (E.D. Mich. 1995).

Bailey v. Muskegon County Bd. of Comm'rs, 122 Mich. App.
808, 821, 333 N.W.2d 144 (1983), supports exemption of this
statute from the Headlee amendment requiring electorate
approval. "The Headlee Amendmen’ imposes specific
limitations on the authority to impose additional taxes
without voter appzoval. It does not require voter approval of
increased tax levies where the authority to make the levy has
already been approved." Smith v. Scio Township, 173 Mich.
App. 381, 388, 433 N.W.2d 855 (1988) (citing Bailey). As
discussed in section III(A), supra, federal law overrides state
law in the instant case, and supports the defendant
municipalities’ imposition of taxes that exceed Michigan
constitutional limitations, in compliance with my orders.
However, even if Michigan law applied, because the taxes
levied pursuant to the Wayne County 1994 Financing Plan
and Final Judgment were levied pursuant to statutes enacted
prior to ratification of the Headlee amendment, those tax
levies are not subject to voter approval or other limitations
imposed by that amendment, and plaintiffs’ claim must be
denied.

27a
The Plan specifically refers to Act 236 as a statute
authorizing the imposition of taxes on property owners in
resolution of the defendant municipalities’ debt obligations as
determined in Wayne County:

With respect to any Downriver Community
that does not pay its Judgment Payment... in
cash prior to the closing date for the sale of
Wayne's bonds a certified copy of this 1994
Financing Plan and Final Judgment shall be
filed with the assessing officer of each
Downriver Community that is a ear
pursuant to Section 6093 of Act 236... and
this 1994 Financing Plan and Final Judgment.

Wayne County 1994 Financing Plan and Final Judgnient, P 8,
Me ya

In oral argument plaintiffs’ counsel asserted that my order
pursuant to Act 320 and Act 236 must be minimally intrusive.
In Wayne County I did this when I ordered the municipalities
to pay their share costs in cash. I did not restrict the methods
by which they might procure this cash. I could not have given
a less intrusive order.

My order directing defendant municipalities to levy taxes to
pay their costs became effective only if they did not pay their
share costs in cash. Although plaintiffs’ assertions implicitly
assume that I could not order the levy of taxes until after an
actual violation of the minimally intrusive order, nowhere in
Jenkins does the Supreme Court state that a federal court
must wait until a local government unit violates its minimally
intrusive orders to delineate contingent orders to enforce its
judgment. See Missouri v. Jenkins, 495 U.S. 33, 109 L. Ed.
2d 31, 110 S. Ct. 1651 (1990).

28a

CONCLUSION

Defendants are entitled to summary judgment on three legal
premises: (a) the inherent power of federal courts to order
local government units to levy taxes to pay their debt
obligations, to carry out federal court ordered and approved
consent decrees and their financing plans, even if those taxes
exceed state statutory or constitutional tax limits; (b) laches:
and (c) inapplicability of the Headlee amendment.

IT IS SO ORDERED.
John Feikens
United States District Judge

Dated: June 9, 1998

29a

GLORIA BYLINSKI, GLORIA BELLMAN. ALLAN
COLLINS, DENNIS COATES, DOUGLAS HAMMAR,
ROBIN HAMMAR, SANDRA HOLIDAY. STEVEN
HOLIDAY, ROBERT JARRELL. ANISE PIERCE,
RICHARD PRESSEY, JIMMY SEACRIST. and MOLLY
SEACRIST, and all other persons similarly situated,
Plaintiffs, v. CITY OF ALLEN PARK. a Michigan municipal
corporation, CHARTER TOWNSHIP OF BROWNSTOWN,
a Michigan municipal corporation, CITY OF ECORSE, a
Michigan municipal corporation, CITY OF LINCOLN
PARK, a Michigan municipal corporation, CITY OF RIVER
ROUGE, a Michigan municipal corporation, CITY OF
ROMULUS, a Michigan municipal corporation, CITY OF
SOUTHGATE, a Michigan municipal corporation, CITY OF
TAYLOR, a Michigan municipal corporation, Defendants.

Civil Action No. 98-71289

UNITED STATES _ DISTRICT COURT FOR’ THE
EASTERN DISTRICT OF MICHIGAN, SOUTHERN
DIVISION

Filed: June 9, 998

OPINION AND ORDER

DENYING PLAINTIFFS' MOTION TO REMAND

I. INTRODUCTION

Plaintiffs Blinks et al., representative taxpayers in
defendant municipalities, bring this action against defendants
City of Allen Park et al. to obtain a refund of and to enjoin
further collection of property taxes imposed by the

30a

municipalities pursuant to a consent decree entered by moon
May 12, 1994. United States v. Wayne County, Civil Action
No, 87-70992 (E.D. Mich 1994) (Wayne County). The Wayne
County consent decree references the Downriver Sewage
Disposal System 1994 Financing Plan and Final Judgment
Re: 1994 Court Ordered improvements (Plan). The Plan is
part of a comprehensive scheme of sewer improvements
intended to bring the defendant municipalities into
compliance with the Clean Water Act, 33

Before me is plaintiffs’ motion to remand this case to
the Wayne County Circuit Court. This opinion supplements
my findings in the hearing on this motion,

I. ANALYSIS

As stated in defendants’ brief in opposition to
plaintiffs’ motion to remand, implementation and
enforcement of compliance with the 1994 Financing Order
and Final Judgmeut entered by this court in Wayne County
are within this court’s continued jurisdiction and supervision.
[he United States Court of Appeals for the Sixth Circuit
Stated:

Once approved, the prospective provisions of the
consent decree operate as an injunction The
injunctive quality of a consent decree compels the
approving court to: (1) retain jurisdiction over the
decree during the term of its existence, (2) protect the
integrity of the decree with its contempt powers, and
(3) modify the decree if “changed circumstances”
subvert its intended purpose. [I] is well settled that
“courts retain the inherent power to enforce

3la
agreements entered into in settlement of litigation
pending before them.”

Vanguards of Cleveland v. City of Cleveland. 23 F.3d 1013,
1018 (6th Cir. 1994) (citations omitted) (emphasis added),
Defendants correctly assert that this suit poses an imminent
threat to the integrity of the Financing Orders because it
could adversely affect the financing mechanism in those
orders. I appropriately retain jurisdiction of any matters that
might affect the Wayne

County consent decree and its implementation.

My jurisdiction is also appropriate under the All

Writs Act, 28 U.S.C. § 1651(a), which gives federal courts
the “authority to remove an otherwise unremovabie state
court case in order to ‘effectuate and prevent the frustration
of orders it has previously issued in its exercise of
jurisdiction otherwise obtained.” Jn reA gent Orange Product
Liability Litigation, 996 F.2d 1425, 1431 (2d Cir. 1993)
(citations omitted),

CONCLUSION

For the reasons stated herein and in the hearing on the
motion, plaintiffs’ motion to remand is denied.

IT IS SO ORDERED.

John Feikens
United States District Judge

Dated: 6/9/98 °

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386005_0726%3A1. Public record. Not legal advice.
