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Gloria Bylinski v. The City of Allen Park

Citations: 169 F.3d 1001; 1999 U.S. App. LEXIS 1221; 1999 WL 125517Docket: 98-1725

Court: Court of Appeals for the Sixth Circuit; January 25, 1999; Federal Appellate Court

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A class action lawsuit was initiated by taxpayers seeking a tax refund and an injunction against further taxation by several municipalities, arguing that the municipalities lacked the authority to levy taxes without a referendum as mandated by a recent Michigan constitutional amendment. The defendants removed the case to federal court, asserting that the taxes were imposed under a federal consent decree from 1994 related to the Clean Water Act, which required specific municipalities to contribute funds for wastewater treatment facility upgrades. The district court maintained jurisdiction under the consent decree, denying the plaintiffs' remand request and granting summary judgment to the defendants. The consent decree had been established following a federal action brought by the State of Michigan and the EPA, mandating that municipalities unable to meet payment assessments would need to raise taxes. The plaintiffs filed their lawsuit four years after the consent decree and three years after the tax levies began, by which time significant progress had been made on the renovation projects and substantial bonds had been sold.

The defendant communities successfully moved the case to federal court, arguing that the state court action was closely linked to the 1994 consent decree. The district court granted summary judgment for the defendants regarding taxpayers' claims that the tax levies violated the Michigan constitution, ruling that (1) the challenge was barred by laches, (2) the court had inherent power to enforce its judgments, and (3) the constitutional provision cited was inapplicable since the levies were authorized by pre-existing state statutes. 

The plaintiffs claimed the district court erred in denying their remand motion and allowing municipalities to impose taxes without citizen votes, allegedly violating a constitutional "tax revolt" provision. The court maintained jurisdiction over the consent decree's implementation and stated that the lawsuit threatened the integrity of the financing orders. It also correctly applied the All Writs Act to remove the state case.

The district court's summary judgment was based on laches, an equitable doctrine that bars claims when a plaintiff's delay prejudices a defendant. The court found that the plaintiffs delayed filing their lawsuit until after municipal bonds for a sewer project were issued and that the project was largely complete and costly. The plaintiffs had sufficient notice of the financing intentions but waited three years to act, which prejudiced the defendants. 

After reviewing the case, the appellate court affirmed the district court's decisions, concluding that it did not err in retaining jurisdiction or in applying laches. The appellate court deemed an additional detailed opinion unnecessary, affirming the lower court's judgment regarding the denial of the remand motion and the summary judgment in favor of the defendants. The decision, initially unpublished, was later designated for full-text publication.