Five Stories That Matter in Michigan This Week – June 27, 2025

  1. Supreme Court Eliminates Heightened Standard for Student Disability Discrimination Claims

The U.S. Supreme Court unanimously ruled in A.J.T. v. Osseo Area Schools that students with disabilities suing for damages under the Americans with Disabilities Act and Section 504 of the Rehabilitation Act need not prove “bad faith” or “gross misjudgment” by their school district. The case involved a teenager with severe epilepsy whose school refused to accommodate her afternoon-only attendance schedule, prompting her parents to sue for discrimination.

Why it Matters: This decision eliminates a circuit split that created inconsistent legal standards across the country and makes it significantly easier for students with disabilities to pursue successful discrimination claims against schools.

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  1. Collateral Consequences: How Criminal Convictions Can Jeopardize Your Professional License

When people think about the consequences of a criminal conviction, they typically focus on the immediate penalties: fines, probation, jail time. But licensed professionals—doctors, nurses, lawyers, teachers, real estate agents, and others—the consequences can extend far beyond the courtroom. A criminal case doesn’t just threaten your freedom. If you’re a licensed professional, it can threaten your livelihood.

Why it Matters: Licensed professionals have more at stake than the average person facing criminal charges, but with early legal counsel from an attorney who understands both criminal law and licensing law and a proactive plan, you can minimize the damage and, in many cases, preserve your ability to work. Don’t make the mistake of waiting until your criminal case is over to start thinking about your license. By then, it may be too late. Read more from your Fraser Trebilcock attorney.

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  1. Michigan Cannabis Exceeds $272 Million in May ‘25

Cannabis sales surpassed $272 million in May 2025, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $272,065,398.45, while medical sales came in at $553,315.50, totaling $272,618,713.95.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Senate Bill Introduced Aimed at Amending the Truth in Renting Act

Senate Bill 373 was recently introduced as legislation aimed at amending the Truth in Renting Act, which would prohibit rental agreements from including a provision that imposes an additional charge or fee on allowable methods of paying rent, as well as specify that there be made available at least one fee-free payment method.

Why it Matters: According to officials, “Under the bill, a rental agreement also could not include a provision that imposed an additional charge or fee on all methods for the payment of rent allowed under the rental agreement. The bill specifies that if a rental agreement allowed for more than one method of payment of rent, the agreement would have to include a provision that allowed at least one payment of rent to be used without the tenant incurring an additional charge or fee.”

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  1. Coverage Position vs. Reservation of Rights Letters: What They Are and Why Timeliness Matters

When a claim comes in and there are coverage issues, insurers have two key tools to protect their position: the Coverage Position Letter (CPL) and the Reservation of Rights (RoR) letter. These letters serve related but distinct purposes, and sending them promptly can help prevent miscommunication, disputes, and legal exposure.

Why it Matters: Timely, specific communication helps preserve legal defenses, avoid unintended estoppel, and demonstrate good faith. Whether used separately or together, these letters allow insurers to stay proactive, protect their position, and encourage a more informed dialogue with insureds.

Related Practice Groups and Professionals

Criminal Law | Robert Andretz
Licensing & Regulatory | Robert Andretz
Cannabis Law | Sean Gallagher
Real Estate | Jared Roberts
Insurance | Dakota Larson

Five Stories That Matter in Michigan This Week – May 5, 2023

  1. Sixth Circuit: Employee Must Alert Employer of Need for Reasonable Accommodation to Bring a Claim of Disability Discrimination

In the case of Hrdlicka v. General Motors, the Sixth Circuit Court of Appeals upheld a lower court ruling that an employee must sufficiently inform their employer of their need for a reasonable accommodation in order to prosecute a claim of disability discrimination under state and federal law.

Why it Matters: This case serves as an important reminder that while employers must be responsive and engaged when an employee requests a reasonable accommodation for a disability, there is also a responsibility for employees to inform their employers of a disability. In this case, the plaintiff’s “purported disability was unknown to either herself or General Motors until well after her employment was terminated.”

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  1. Independent Contractor Bills Introduced in Michigan House of Representatives

Even though the Michigan Legislature is currently mired in the often months-long process of passing a budget, there is a package of mostly non-spending bills in the Michigan House of Representatives that businesses should be keeping an eye on.

Why it Matters: The multi-bill package (HB 4390 et seq.) would create one of the strictest standards for defining an independent contractor and provides for significant penalties for those employers that misclassify workers. Learn more.

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  1. Limitations of Federal Bankruptcy Law for Marijuana Businesses

Under the federal Controlled Substances Act, marijuana remains classified as a Schedule I drug, making it illegal at the federal level. This creates a unique challenge for marijuana businesses operating legally within their state’s framework, as they are unable to avail themselves of federal bankruptcy protection.

Why it Matters: Federal bankruptcy courts have been reluctant to provide relief to debtors engaged in activities that are illegal under federal law, even if those activities are legal under state law. As a result, marijuana businesses are often left without the benefits of bankruptcy protection, such as the automatic stay, discharge of debts, and court-supervised reorganization.

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  1. Attorney Receives Favorable Ruling for Firm Client

Fraser Trebilcock’s Litigation Department Chair Thaddeus Morgan obtained a favorable ruling for the firm’s ERISA plan client in a case brought by a no-fault provider claiming reimbursement for the plan enrollee’s treatment.

Why it Matters: The court granted the plan’s motion to dismiss finding that the provider did not have standing and the plan’s anti-assignment provision was enforceable. Learn more.

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  1. Ten Reasons You May Want to Consider a Family Cottage Succession Plan

The goal of cottage succession planning is to set up legal ground rules that provide the best chance to keep a cottage in the family for future generations.

Why it Matters: A cottage plan usually addresses concerns through the creative use of a limited liability company (LLC), or in some cases a trust, to own the property. Here are ten reasons why you and/or your family may want to consider a family cottage succession plan. Learn more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Dave Houston
Business & Tax | Robert Burgee
Cannabis Law | Sean Gallagher
Litigation | Thaddeus Morgan
Cottage Law | Mark Kellogg