Sylvan Township v. City of Chelsea

In this dispute over the obligation to repay debt on municipal bonds, plaintiff, Sylvan Township (Sylvan), appeals by right the trial court’s order granting the motion for summary disposition filed by defendant, city of Chelsea (Chelsea). On appeal, Sylvan argues that the trial court erred when it applied the doctrines of res judicata and equitable estoppel to bar its claim that Chelsea was obligated to pay a share of the municipal debt incurred by Sylvan before Chelsea incorporated as a home rule city. Because we agree that the trial court erred when it dismissed Sylvan’s claim on the…