Ownership Group Forming for Consumers Houghton Lake Substation Project

Consumers Energy Company has filed over 30 lawsuits in Roscommon County to facilitate the construction of a new electrical substation.  I understand that more lawsuits may be filed next week.  Consumers seek easements allowing the construction of a new electrical transmission line.  

I am already representing multiple clients in the project. For those cases, Consumers did not commission real estate appraisals. Rather, Consumers commissioned a market study that evaluated market data for different types of properties. Consumers is offering only nominal compensation that appears to only take into account the area impacted by the easements. 

Michigan’s eminent domain law requires evaluation of damages to the remainder, not just payment for the value of the property actually encumbered by the easement. From what cases that I have observed, the easements are adjacent to a heavily treed road. The easements encumber properties with homes. The easements allow the removal of the trees but do not require things like removal of the stumps, regrading, and planting of replacement vegetation consistent with the easement rights.  As such, the easements can devalue homes in multiple ways. First, replacing a naturally forested street view with unsightly stumps reduces the curb appeal of homes.  Removing vegetation exposes homes to traffic noise or wind.  It can also reduce or eliminate privacy.

A study undertaken by an appraiser in a separate eminent domain matter demonstrated both significant reductions in value for fully versus partially treed lots, with a further devaluation caused by a Consumers electrical easement.  The easement in that market study was less onerous in terms of property rights, location, and the existence of trees than what Consumers seek to acquire in this case.

I represent multiple owners in this project on a contingency basis. I charge 1/3 of the additional compensation that I obtain above the Consumer's good faith offer (the amount identified in their lawsuit). For example, if Consumers offered you $3 and we resolved the matter for $9, the increase is $6 ($9 - $3) and the attorney fee is $2 ($6/3). Additionally, I will request that Consumers reimburse my attorney fees. While past results are not a promise of future performance, Consumers have paid these fees in other matters without controversy. Further, Consumers must reimburse the property owners reasonable appraisal fees, allowing them to obtain their own, impartial analysis of the just compensation that should be paid.

Please contact me if you have any questions or are interested in representation.