A Michigan federal judge has dismissed two lawsuits challenging a $217 million special assessment imposed on property owners to fund the reconstruction of four dams destroyed in 2020 floods, ruling that homeowners had ample opportunity to object in state court.
U.S. District Judge Matthew F. Leitman ruled Thursday that plaintiffs, including the Heron Cove Association and individual homeowners, cannot relitigate their failed state court claims in federal court, dealing a major blow to their bid to overturn the special tax.
Dam Disaster Leads to Multi-Million Dollar Battle
The lawsuits stem from the catastrophic collapse of the Edenville Dam in May 2020, which unleashed historic flooding that also overwhelmed the Sanford Dam, devastating homes and businesses across Midland and Gladwin counties.
To fund the $400 million dam restoration effort, the Four Lakes Task Force, a state-appointed oversight body, devised a special assessment plan to cover $217 million of the costs over a 40-year period—a move that sparked outrage from some property owners.
