Workers Can Sue Michigan Over Bogus Unemployment Fraud Findings

About 40,000 Michigan workers can sue the state over a faulty computer system that auto-denied unemployment benefits, the Michigan Supreme Court ruled Tuesday.

The 4–3 decision for the first time held that plaintiffs can bring lawsuits claiming the state infringed on their constitutional due process rights and collect damages if state law provides no other remedy. A prior lower-court ruling had dismissed an attempt by several workers to bring a class action because of limits on appealing unemployment benefits decisions.

“Although we have never specifically held that monetary damages are available to remedy constitutional torts, we now hold that they ...