Jury Awards-Family $3.6 Million in Discrimination Case Against the City of Frankenmuth, MI

SOUTHFIELD, Mich., March 24 /PRNewswire/ -- Ronald and Arthur Loesel, together with Valerian Nowak representing the estate of their deceased sister, Alice [Loesel] Nowak sought $3.9 million from the City of Frankenmuth, claiming that the City violated their 14th Amendment Equal Protection rights in December 2005 when it improperly passed an ordinance to re-zone the 37 acres they owned along M-83 in Frankenmuth Township. In 2005, Wal-Mart entered into a purchase agreement with the Loesels to sell their land to Wal-Mart for $4 million. The evidence presented at trial showed that, shortly after learning of the Loesels' deal with Wal-Mart, Frankenmuth city officials began searching for ways to block the sale and ultimately re-zoned the Loesels' property in such a way that prevented Wal-Mart from building its store, causing Wal-Mart to pull out of the deal.

The Loesels, through their attorney Andrew Kochanowski, of Sommers Schwartz, P.C., OF Southfield, argued that the City denied them equal protection of the laws when it discriminated against them by passing an ordinance that restricted the size of buildings on their property to 65,000 square feet, causing Wal-Mart to pull out of the $4 million deal. The problem with the ordinance was that it did not affect other similarly situated property in Frankenmuth and the City could not justify the ordinance with a rational basis for its enactment. "I thought we had overwhelming evidence that the Wal-Mart opposition was caused by local economic protectionism; that's what I argued, and that's what the evidence showed," said the Loesels' attorney, Andrew Kochanowski. He also argued that "Because of the city's actions, the Loesels lost out on the sale of a lifetime." "Walmart came in with a very, very handsome price, and the Loesels will never see that offer again," he said.

Frankenmuth's City Manager admitted at trial that he knew that Wal-Mart could have built a store if the City did not act to pass the ordinance and that the ordinance would treat the Loesels differently than others. The 5-day trial took place in federal court in Bay City, Michigan before U.S. District Court Judge Thomas L. Ludington.

SOURCE Sommers Schwartz, P.C.