Parsons v. Detroit & Canada Tunnel Co.
District Court, E.D. Michigan · 1936-07-31 · cited 7×
The case involved a receiver for the Detroit & Canada Tunnel Company challenging real property tax assessments for 1932-1934 by Detroit authorities, alleging that the valuations were based solely on reproduction cost rather than capitalized income, leading to grossly excessive amounts in violation of due process and equal protection under the Fourteenth Amendment, and that portions of the tunnel should have been assessed as personal property. The court found that the assessing authorities used an erroneous method of valuation, resulting in assessments more than 400% above general levels, and determined the just amounts due as specific figures totaling around $16,361.21 after adjustments. It ruled that the underground tunnel portions should have been treated as personal property per Michigan statutes but that this did not prejudice the receiver in this instance, and ordered payment of the reduced taxes as preferred claims while discharging liens upon payment.