Res judicata did not bar circuit court’s review of inverse condemnation claim
A property owner was denied PUD approval by the Village Council (upon initial recommendation of denial by the Village Planning Commission). The property owner appealed the PUD denial to circuit court. The circuit court affirmed the Village Council’s PUD denial, finding that the Council had based its decision on competent, material and substantial evidence on the record.
The property owner then sought to take its case to federal court (including a new claim of inverse condemnation), which court declined jurisdiction, given that the Allegan County circuit court had not reviewed the inverse condemnation claim. The Allegan County circuit court then granted summary disposition for the Village on all counts.
On appeal to the Court of Appeals, the property owner argued that the circuit court erred in granting summary disposition for the Village on all counts. The Court of Appeals agreed, in part. While the Court of Appeals found that res judicata barred the relitigation of the property owner’s appeal claims (ie., proper procedure, denial of PUD), the Court of Appeals reversed the grant of summary disposition as to the inverse condemnation claim. The Court of Appeals held that as the inverse condemnation claim had not been heard by the circuit court in the original appeal, the court was premature in granting summary disposition on that claim. Citing Houdini Properties v Romulus, 480 Mich 1022 (2006), the Court of Appeals reversed the circuit court’s grant of summary disposition as to the property owner’s inverse condemnation claim and remanded for further proceedings.
Rodriguez v City of Village of Douglas, Court of Appeals, case no. 299510, unpublished, 1/10/12