Month: March 2025

Five Stories That Matter in Michigan This Week – March 14, 2025

  1. Michigan Federal Court Rules that CTA is Unconstitutional 

Shortly after the U.S. Department of Treasury announced a suspension of enforcement the Corporate Transparency Act (CTA), the U.S. District Court of the Western District of Michigan ruled in Small Business Association of Michigan, et al v. Yellen, et. al. that the CTA’s reporting requirements violated the Fourth Amendment of the U.S. Constitution.

Why it Matters: While the ruling applies only to plaintiffs who brought the case (such as members of the Small Business Association of Michigan), it may influence other courts’ considering similar constitutional challenges to the CTA throughout the country.

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  1. Michigan Supreme Court Upholds Victory for Firm’s Client

Fraser Trebilcock attorneys Michael P. Donnelly and Laura S. Faussié successfully represented a fiber optic company before the Michigan Supreme Court. On January 24, 2025, the Court, after hearing oral argument from the parties, denied an application for leave to appeal in a case involving the firm’s client, a fiber optic company, effectively upholding the lower courts’ decisions in the client’s favor. The case addressed whether a fiber optic or other telecommunication company was required to obtain permission from, and pay large fees to, a railroad company before installing fiber optic cables under their tracks located at public crossings.

Why it Matters: In a 5-1 decision, with one justice not participating, the Supreme Court left in place the Michigan Court of Appeals’ ruling that the fiber optic company could proceed with installing underground cables beneath railroad tracks at public road crossings after obtaining necessary municipal permits, without requiring additional permission from or fees to the railroad company. Read more.

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  1. Thaddeus E. Morgan Selected as a Member of Michigan Lawyers Weekly “Hall of Fame Class of 2025”

Fraser Trebilcock Shareholder Thaddeus E. Morgan has been selected as a member of Michigan Lawyers Weekly’s “Hall of Fame Class of 2025.” Mr. Morgan is President of Fraser Trebilcock and has over 30 years of litigation experience in both state and federal courts in a wide variety of areas, including, commercial and business disputes, employment and shareholder litigation, construction, health care, real estate, insurance, and intellectual property. He is a former assistant prosecutor and assistant attorney general.

Why it Matters: This special award recognizes esteemed members of the legal profession who have been in practice for at least 30 years. These lawyers truly are legends, making their mark in the courtroom or the boardroom, in their firms and with community organizations, and with local, state and national bar associations. Read more.

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  1. Michigan Treasury to Distribute Nearly $100 Million from Marijuana Tax

The Michigan Treasury Department announced in February its plan to distribute nearly $100 million to 302 local entities and tribes as part of the Michigan Regulation and Taxation of the Marijuana Act.

Why it Matters: 108 cities, 36 villages, 80 townships, 74 counties, and 4 tribes will receive these payments. According to the state, this means for every licensed store and microbusiness in their respective jurisdiction, they will receive over $58,200.

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  1. Keep Your Michigan Cottage in the Family

The family cottage is a place for fun and relaxation in Michigan. For many, the family cottage becomes the meeting place for generations and where lifelong memories are made. As a result, it’s often the intent of the owner to pass the cottage on to future generations to enjoy. Unfortunately, challenges such as high property taxes and family disputes can prevent that from happening. These obstacles can be overcome through careful cottage succession planning.

Why it Matters: If you own a cottage in Michigan, our Cottage Law team can help you think through the issues and take the actions necessary to create a cottage plan. A cottage plan usually addresses the concerns through the creative use of a limited liability company (LLC) or a trust to own the property. Learn more.

Related Practice Groups and Professionals

Business & Tax | Robert D. Burgee
Litigation | Michael Donnelly
Litigation | Laura Faussié
Thaddeus Morgan
Cannabis Law | Sean Gallagher
Cottage Law | Mark Kellogg

Five Stories That Matter in Michigan This Week – March 7, 2025

  1. CTA Update: Treasury Department Issues Statement

The United States Treasury Department recently issued a statement casting doubt on the future enforceability of the Corporate Transparency Act (CTA), at least in its current form. This is particularly relevant for US entities owned by US citizens. While not legally binding, Treasury’s guidance strongly signals that the rules enacting the CTA are likely to be rescinded or significantly revised before implementation. FinCEN has previously announced its intention to issue revised rules and updated reporting deadlines by March 21, 2025.

Why it Matters: Businesses that have already implemented CTA compliance processes, are advised to continue those efforts to ensure ongoing compliance. This recommendation remains in effect until FinCEN issues a new final rule or the law is formally amended. Read more from your Fraser Trebilcock attorney.

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  1. Whitmer Proposes New Wholesale Tax on Marijuana Products in Road Funding Plan

Governor Whitmer’s $3 billion “MI Road Ahead Plan” proposes closing an alleged “loophole” by imposing a new wholesale tax on marijuana products, similar to taxes on tobacco, potentially generating $470 million for road repairs.

Why it Matters: While details remain scarce about what specific “loophole” is being addressed or how the tax would be structured and implemented, marijuana businesses in Michigan should stay apprised of new developments regarding this proposed tax.

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  1. Fraser Trebilcock Welcomes Dakota A. Larson to the Firm

We are pleased to announce the hiring of Dakota A. Larson who will primarily work in the firm’s Lansing office.

Why it Matters: Ms. Larson focuses on insurance defense and business matters. She has experience handling complex liability, coverage, and bad faith claims in multiple lines of insurance and in multiple jurisdictions. Learn more.

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  1. Keep Your Michigan Cottage in the Family

The family cottage is a place for fun and relaxation in Michigan. For many, the family cottage becomes the meeting place for generations and where lifelong memories are made. As a result, it’s often the intent of the owner to pass the cottage on to future generations to enjoy. Unfortunately, challenges such as high property taxes and family disputes can prevent that from happening. These obstacles can be overcome through careful cottage succession planning.

Why it Matters: If you own a cottage in Michigan, our Cottage Law team can help you think through the issues and take the actions necessary to create a cottage plan. A cottage plan usually addresses the concerns through the creative use of a limited liability company (LLC) or a trust to own the property. Learn more.

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  1. Business Education Series: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the April Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

Related Practice Groups and Professionals

Business & Tax | Robert D. Burgee
Cannabis Law | Sean Gallagher
Dakota Larson
Cottage Law | Mark Kellogg

CTA Update: Treasury Department Issues Statement

Important Update: The United States Treasury Department recently issued a statement casting doubt on the future enforceability of the Corporate Transparency Act (CTA), at least in its current form. This is particularly relevant for US entities owned by US citizens. While not legally binding, Treasury’s guidance strongly signals that the rules enacting the CTA are likely to be rescinded or significantly revised before implementation. FinCEN has previously announced its intention to issue revised rules and updated reporting deadlines by March 21, 2025.

Businesses that have already implemented CTA compliance processes, are advised to continue those efforts to ensure ongoing compliance. This recommendation remains in effect until FinCEN issues a new final rule or the law is formally amended.

Businesses that have not already filed Beneficial Owner Information Reports (BOIR) are advised to consult with legal counsel and monitor the rulemaking and legislative process for further developments. Foreign-owned entities doing business in the United States and US entities with foreign owners are advised to pay particular attention to such developments.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions. When it matters in Michigan, we are the trusted legal advisors for businesses and individuals.

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.