Rohde v. Ann Arbor Public Schools, 479 Mich. 336

Summary

The Michigan Supreme Court held that taxpayers' letters requesting investigation and cessation of allegedly unlawful public expenditures satisfied the demand requirement of MCL 129.61. The Court nevertheless concluded that the taxpayers lacked constitutional standing because they did not demonstrate a concrete and particularized injury and the statute did not create a valid qui tam action. The Court affirmed dismissal of the lawsuit and remanded for entry of an order dismissing the case.

Holdings

1. A communication that would reasonably be understood as a call to act may constitute the demand required by MCL 129.61; the plaintiff need not use the word "demand," cite the statute, request litigation specifically, or request an accounting or recovery of funds in the preliminary demand.
2. The Legislature may not confer standing on a plaintiff who does not satisfy the constitutional requirements of injury in fact, causation, and redressability. Plaintiffs' generalized and minute taxpayer interest did not constitute a concrete and particularized injury.
3. MCL 129.61 did not create a qui tam action or a comparable partial assignment of the government's injury that would confer constitutional standing on the plaintiffs.
4. House Speaker v. Governor was not dispositive and is disapproved to the extent it could be read as permitting a court rule or statute to eliminate the constitutional injury requirement.

Questions Presented

1. Whether letters requesting that public officials investigate and halt an allegedly unlawful expenditure constituted a demand under MCL 129.61.
2. Whether MCL 129.61 could constitutionally confer standing on taxpayers who did not satisfy Michigan's constitutional injury-in-fact standing requirements.
3. Whether MCL 129.61 created a qui tam action or analogous assignment of the government's injury sufficient to confer constitutional standing.

Disposition

reversed_and_remanded