State Appeals Court Rules Against Shelby Township in Lawsuit with Former Tech Company

Shelby Township may be forced to pay hundreds of thousands of dollars to its former technology company now that the Michigan Court of Appeals has overturned a 2009 ruling on a lawsuit between the two.

The township and Technology Integration Group Services Inc. (TIGS) sued each other in September 2007 for breach of contract -- with a second claim of fraud by the township against TIGS -- after Shelby terminated its contract with company in August 2007.

Township officials terminated the agreement after news surfaced that TIGS President Darrin Hanna Sales Manager Dawn Hanna had been indicted by the U.S. Attorney’s Office for violating a trade and financial embargo with Iraq, former Shelby Township supervisor Ralph Maccarone told The Macomb Daily.

Dawn Hanna was later convicted of conspiracy, money laundering, lying to a federal agent and five counts of export violations, according to The Macomb Daily. She was sentenced to six years in prison, while her brother was acquitted of all charges.

In 2009, a Macomb County jury ruled in favor of the township, ordering a monetary award from TIGS. On March 5, the state appeals court overturned this verdict and ordered a judgment in favor of TIGS, The Macomb Daily reports.

It is unknown at this time the total amount Shelby Township could be required to pay. TIGS originally sued Shelby for $450,000.  

The township can still appeal to the state Supreme Court, which could reverse this decision.