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Contracts Keyed to Barnett
Ypsilanti v. General Motors
Citation:
15 F.3d 1085 (6th Cir. 1994)Facts
General Motors operated two plants in Ypsilanti Township, Michigan: the Hydra-Matic plant employing approximately 9,000 workers and the Willow Run plant employing more than 4,000. Between 1975 and 1988, the township granted GM eleven tax abatements under Michigan law, including two for the Willow Run plant in 1984 and 1988. During the 1988 application process for a $75 million investment to produce the Chevrolet Caprice, Willow Run’s plant manager stated that “upon completion of this project and favorable market demand, it will allow Willow Run to continue production and maintain continuous employment for our employees.” In December 1991, GM announced plans to consolidate operations by moving production from Willow Run to Arlington, Texas, citing record losses and declining Caprice sales. The township sued GM, claiming breach of contract, promissory estoppel, unjust enrichment, and misrepresentation.
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