Traverse City Record-Eagle

Acme

August 11, 2008

Meijer files emergency appeal in home court

TRAVERSE CITY -- Meijer Inc. wants Grand Rapids-based appellate judges to quash an Acme Township official's lawsuit and protect the retailer's top officials from having to testify in the case.

Meijer filed an emergency appeal that asks the state Court of Appeals in Grand Rapids to block a lawsuit filed in Grand Traverse County Circuit Court by Robert Carstens, an Acme planning commissioner.

Meijer is headquartered in the Grand Rapids suburb of Walker.

Carstens' lawsuit charges that Meijer and its former attorneys intentionally harmed him and other townships officials through a frivolous 2005 lawsuit, illegal campaign activity and secret financial support of a "citizens" group that harassed township officials.

Meijer's filing in Grand Rapids 3rd District surprised Carstens' attorneys. Appeals from Grand Traverse County normally are heard by appellate judges elected in the 4th District, which covers all of northern Michigan.

"Of course, if you were Meijer, where else would you want to go," said Robert Garvey, one of Carstens' attorneys.

Meijer attorney James Brady said his filing in Grand Rapids has "nothing to do with anything," because the three judges assigned to the panel can come from anywhere in the state.

"It has nothing to do with Meijer being located in the Third District," Brady said.

But officials with the Grand Rapids court's clerk's office said Meijer's motions initially will be heard and decided by a three-judge panel from Grand Rapids.

The case would be assigned to District Four and a statewide selection of judges only if the Grand Rapids panel denies the emergency appeal, but grants a regular appeal process.

If that happens, Meijer wants a stay to halt Carstens suit until its appeal is decided.

"What they are trying to do strategically is prevent us from taking depositions and finding out what happened," Garvey said.

Meijer and The Village at Grand Traverse LLC in 2005 personally named eight township board and planning commission members in suits against the township over a zoning dispute for a proposed development on M-72.

Meijer representatives threatened to seek millions of dollars in damages from the township and its officials.

In November, the targeted Acme officials agreed to release Meijer and its attorneys from future litigation to settle the lawsuit. But that agreement came before Meijer publicly acknowledged it illegally spent more than $100,000 to influence township elections in 2005 and 2007.

Grand Traverse County Circuit Court Judge Philip E. Rodgers ruled the releases were obtained under "extraordinary" circumstances and threw them out, a move that opened the door for Carstens and others to sue Meijer.

Meijer attorney Brady subsequently alleged that Rodgers made multiple "obvious and grievous errors" in allowing Carstens to reopen the suit and alleged Rodgers' "passion and bias against Meijer and its former counsel was palpable."

The chief example of bias cited by Brady was Rodgers' chastising former Meijer attorneys who allegedly "lied" to him in court about the Meijer's secret and illegal election activities.

Meijer asked the appellate court to reverse Rodgers' decision through an emergency appeal to avoid costly litigation and contentious depositions.

"Protracted and contentious discovery will soon (ensue) with Mr. Carsten's counsel already reporting to the media that he wants to depose the Meijer family, its president, and other high level officers," Brady wrote in court documents.

Carstens co-counsel Mike Dettmer said he intends to depose Meijer's top officials to determine who at the mega-retailer authorized election tampering.

Meijer officials Hank Meijer, a company board co-chairman, and President Mark Murray, a member of former Michigan Gov. John Engler's cabinet, both denied in media reports all knowledge of the company's illegal campaign activity in Acme.

"We want to protect them from harassment ... because they don't know anything about this," Brady said.

Meijer was fined for violating campaign laws by Secretary of State Terri Lynn Land, but that agreement also thwarted a criminal investigation of actions by Meijer officials.

"Meijer got a slap on the wrist and the public never found out what happened," Garvey said. "That's not a happy ending to this story."

The case has not yet been set for hearing before the appeals court.

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