DETROIT, MI (AP)— The Michigan Supreme Court has heard arguments in a case that could lead to financial penalties against the state for wrongly accusing thousands of people of fraud when they collected unemployment benefits.
No one disputes that a computer system automatically spitting out fraud verdicts was a disaster during Governor Rick Snyder’s administration. Tax refunds were seized and other steps were taken before more than $20 million dollars was returned by the state.
The issue now is whether people alleging due process violations of the Michigan Constitution can try to wring money out of the state for the misery it caused. A decision in the months ahead could break new legal ground.