The state of Michigan appealed this week a case to the state Supreme Court from victims of faulty unemployment fraud claims.
A Michigan Court of Appeals panel last month ruled that the case, Bauserman v. Unemployment Insurance Agency, could go forward. More than 40,000 people were falsely accused of fraud by the Unemployment Insurance Agency (UIA) between 2013 and 2015 and are seeking damages.
In an appeal filed Thursday by Deputy Solicitor General Eric Restuccia, the state argued that the lawsuit potentially would “allow for the violation of the separation-of-powers doctrine by permitting courts to authorize sizable [sic] awards of money damages without legislative authorization.”
State Sen. Curtis Hertel (D-East Lansing) said the Legislature should take action to financially compensate victims.
“The Legislature admitted the state’s wrongdoing in the Unemployment Insurance crisis when we passed a sweeping reform to prevent it from happening again,” he said. “The Legislature should have acted to make Michiganders fiscally whole long ago, and inaction is no longer an option. Leadership should work swiftly to ensure financial restoration is given to these families who have faced real harm because of the state’s error.”