Businesses cannot receive state compensation for pandemic closures

DETROIT (AP) — The Michigan Supreme Court on Friday closed the door on businesses seeking to be paid by the state for restrictions that have affected sales during the COVID-19 pandemic.

The court, in a pair of 5-2 orders, allowed the appeal of the court’s opinions in favor of Gov. Gretchen Whitmer’s administration to stand.

Gyms, fitness centers, bowling alleys, restaurants and similar businesses were closed for months in 2020 or forced to limit public access as the state tried to slow the spread of COVID-19.

Businesses have recognized the role of the state in managing threats to public health. But they argued that they deserved compensation for the government’s taking of private property.

The state appeals court in 2022 said it was not taken.

“Clearly, the property still had value even though no income or profit was generated during the foreclosure,” the court said at the time. “And any value lost in real and personal property was likely recovered once the temporary ban was lifted.”

The Supreme Court did not issue formal opinions, but instead issued two-sentence orders.

Judge David Viviano, joined by Judge Richard Bernstein, said the court should have agreed to hear the full appeals.

By passing, the court damages “the credibility of the judiciary to serve as a bulwark of our liberty and to ensure that the government does not take private property without just compensation — even in times of crisis,” Viviano said.

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