State High Court Hears Jobless Fraud Lawsuits

The Michigan Supreme Court  hears oral arguments today on a case brought by state residents who said they were falsely accused of unemployment fraud.

More than 40-thousand residents were accused of unemployment fraud between October of 2013 and August of 2015. Their lives were thrown into turmoil because the state computer system fouled up.

Problems were eventually uncovered in the computer system rulings and the Michigan Unemployment Insurance Agency ended up reversing those rulings.

The lawsuit says those that had been accused had their property and income taxes seized without proper notice in violation of their constitutional right to due process.
That lawsuit against the Unemployment Insurance Agency was rejected by the state Court of Appeals in July of last year on the grounds that it had not been filed in a timely manner.

That ruling was then appealed to the state Supreme Court.