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891 N.W.2d 233
Mich. Ct. App.
2016
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Background

  • AK Steel (which acquired Severstal) operates a Dearborn steel plant subject to Clean Air Act and Michigan NREPA permitting. Severstal obtained a series of "permits to install" for rebuilding a blast furnace and installing baghouses; the final permit at issue is PTI 182-05C issued May 12, 2014.
  • Petitioners filed a claim of appeal in Wayne Circuit Court 59 days after issuance seeking vacatur and remand of PTI 182-05C.
  • AK Steel moved to dismiss for lack of jurisdiction, arguing petitioners’ appeal was untimely under court rules (21-day or 60-day limits), while petitioners argued NREPA or the APA afforded a 90- or 60-day period.
  • The circuit court denied AK Steel’s motion, relying on petitioners’ reading of MCL 324.5506(14) to permit a 90-day filing period.
  • On appeal, the Court of Appeals affirmed denial of dismissal but reversed the circuit court’s statutory rationale: it held MCL 324.5506(14) does not authorize a 90-day appeal for a permit-to-install and instead concluded the APA applies so MCR 7.119 (60-day rule) governs; petitioners’ filing at 59 days was timely.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether MCL 324.5506(14)’s 90‑day provision permits judicial review of DEQ issuance of a permit to install for an existing source "A petition for judicial review is the exclusive means...filed within 90 days"—the indefinite article "a" means "any" permit, so §5506(14) gives 90 days to appeal PTI The second sentence in §5506(14) refers back to "operating permit," so it does not cover permits to install; §5506(14) therefore does not provide a 90‑day path for PTIs Court held §5506(14) refers to operating permits in context and does not apply to a permit to install; circuit court erred in reading "a" as "any"
Whether the decision to issue a permit to install is subject to the Administrative Procedures Act (APA) so that MCR 7.119 (60 days) governs Petitioners: granting a permit is a "license" under MCL 24.205(1), licensing provisions of APA apply and MCR 7.119’s 60‑day claim‑of‑appeal rule governs AK Steel: NREPA controls and §5506(14) (or catchall MCR 7.123/7.104 21‑day rule) should govern, making the appeal untimely Court held a permit to install is a "license" under the APA; contested‑case licensing provisions apply, so MCR 7.119 governs and the 60‑day period applied (petitioners filed within 59 days)
Whether petitioners’ appeal was timely under applicable court rules Petitioners: appeal filed within 60 days of mailing of final decision (59 days), thus timely under MCR 7.119 AK Steel: rule 7.104/7.123 21‑day requirement applies, so appeal was untimely Held timely: MCR 7.119 applies (60 days); petitioners’ 59‑day filing was timely
Whether the circuit court’s denial of AK Steel’s motion to dismiss should be affirmed despite its statutory error Petitioners: correct ultimate outcome (timely) regardless of circuit court’s statutory analysis; no reversal needed AK Steel: circuit court misapplied NREPA and dismissal proper if rule 7.104 applied Court affirmed denial of dismissal but on different grounds (APA/MCR 7.119), applying harmless‑error principle to uphold correct result reached for wrong reason

Key Cases Cited

  • Glaubius v. Glaubius, 306 Mich. App. 157 (statutory interpretation; give effect to every word and avoid surplusage)
  • Robinson v. City of Lansing, 486 Mich. 1 (statutes must be read as a whole; avoid isolated readings)
  • Wolverine Power Supply Coop. v. Dep’t of Environmental Quality, 285 Mich. App. 548 (interpretation of §5506(14) concerning review of operating permits)
  • Neville v. Neville (On Remand), 295 Mich. App. 460 (affirming correct result reached for wrong reason)
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Case Details

Case Name: South Dearborn Environmental Improvement Ass'n v. Department of Environmental Quality
Court Name: Michigan Court of Appeals
Date Published: Jul 12, 2016
Citations: 891 N.W.2d 233; 316 Mich. App. 265; Docket 326485
Docket Number: Docket 326485
Court Abbreviation: Mich. Ct. App.
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