Michigan residents falsely accused of unemployment fraud win important court decision

DETROIT – Residents who were falsely accused of defrauding Michigan's unemployment program got an important ruling on Friday, while the state Supreme Court had set a favorable timeframe for filing a lawsuit. justice against decisions emanating from a disastrous computer system and enforced by staff.

The court said the victims qualify if they file a lawsuit or notice of legal action within six months of the loss of salary or tax refund. The judges unanimously overturned a decision of the court of appeal that had destroyed the hopes of thousands of people through a different interpretation of the six-month period.

An automated computer system used by the then government. The administration of Rick Snyder was messy. People have been accused of cheating for unemployed help based solely on computers. They were forced to repay money, with heavy penalties, and some were even forced into bankruptcy.

Although refunds and excuses have been made, the state is still the target of lawsuits from people who claimed that their due process rights had been violated during the agonizing saga. Attorney Jennifer Lord said that 40,000 fraud determinations had finally been rescinded.

Lawyers representing the Snyder Unemployment Insurance Agency argued last fall that the six-month time limit for taking legal action came into effect when fraud notices had been received. But the Supreme Court, in a 6-0 decision, said the countdown began later, when people saw their money being seized.

"An applicant does not suffer any prejudice under the due process clause until he incurs a deprivation of property," said Judge Stephen Markman.

The case will now be referred to the Court of Appeal where the unemployment agency may make other arguments in an attempt to evade responsibility. However, it is unclear whether the agency will present these arguments. The new Michigan Attorney General, Dana Nessel, represents the ministry and has voiced support for those wrongfully accused of fraud.

A separate but similar lawsuit is pending in federal court.