Jackson County Circuit Court Judge Richard LaFlamme made a procedural error that is sending a dismissed lawsuit back to court, according to a Michigan Court of Appeals opinion.

The case concerns the old Hayes Hotel, a one-hundred-year-old building downtown that has sat vacant since the early 2000s.

The Court of Appeals found Judge LaFlamme did not consider an amended complaint filed by developer J. Jeffers & Co. when he ruled against them, according to a Wednesday, April 22 opinion.

In that amended complaint, Wisconsin-based Jeffers contends the city of Jackson did not meet necessary prerequisites to close on a sale with Jeffers, according to the Court of Appeals, citing the amended complaint.

These included disregarding requests for information made by the title company and failing to adequately ensure issuance of a title policy, according to the Court of Appeals, citing the amended complaint.

Further, Jeffers argues the city agreed to help but allegedly failed to facilitate financing through a Michigan loan fund, according to the MLive article. Jackson then offered Jeffers to use low-income housing tax credits to make up the difference, but later balked at doing so, according to the opinion.

It is the city's intention to renew its motion for summary disposition that LaFlamme previously granted and ask the judge to also dismiss the additional claims, City Attorney Matthew Hagerty said Sunday in an email. The city's position remains that the purchase agreement with Jeffers expired Dec. 31, 2024 and Jeffers never tendered performance, Hagerty said.

In February 2025, the Jackson City Council added the Hayes Hotel project to its agenda and entered into a purchase agreement with Collier Gibson, according to the MLive article.

This move allegedly blindsided Jeffers, for even though it was working diligently towards closing, the city did not provide Jeffers with notice of default for failing to close, the opinion reads.

The city attorney earlier said Jeffers was told again and again the contract was expiring, including through a letter in November 2024.

Jackson finalized the $25,000 sale to Collier Gibson on March 4, 2025, according to the MLive article.

LaFlamme on March 24, 2025 dismissed Jeffers' claim the city violated its 2022 sales agreement, twice extended.

The lawyers discussed the amended complaint, and the city argued it was futile, but LaFlamme did not note the amended complaint or its alleged futility in his decision, the Court of Appeals found.

LaFlamme said the closing was to occur no later than Dec. 31, 2024. He reasoned the city was under no obligation to do anything whatsoever with respect to the agreement after it expired, the opinion states.

This decision brought about the appeal.

The higher court noted a party may amend a pleading within 14 days after being served with a responsive pleading by an adverse party. This amended complaint supersedes the former pleading, according to the opinion, rendered by a unanimous three-judge panel.

In this case, the amended complaint painted broader swaths, contending the issue was less about the closing date and more on the conduct before it, according to the opinion.

Because LaFlamme did not consider these arguments, the Court of Appeals has ordered Circuit Court to reconsider.

The Court of Appeals did not address any other issues, including Jeffers' contention LaFlamme's interpretation of the purchase agreement was erroneous, because of the procedural mistake.

Jeffers had planned a $40-million project to transform the 10-floor building, named The Hayes, into apartments, event, retail and restaurant space.

Collier Gibson has planned a $35 million project to create 109 apartments, a restaurant, co-work space and a gym.

In February, one of the Collier Gibson owners said construction had resumed after some question about a state grant. Work was to focus initially on renovating the first two floors, converting them into storefronts, co-working space and apartments.

The Hayes Hotel opened in November 1926. It closed in the 1970s, when Consumers Energy purchased it and used it for decades as office space.

The city bought it in 2000 and it has been vacant since 2003.

Past efforts to redevelop it have fallen apart.

In March 2022, Jeffers and his company negotiated with the City Council for the sale and use of the Hayes Hotel.

After the sale of the Hayes Hotel to developer Collier Gibson was announced at the Jackson City Council meeting, developer J. Jeffers & Co. filed a lawsuit against the city in Jackson County Circuit Court.

At a hearing on March 3, Jackson County Circuit Judge Richard LaFlamme denied Jeffers' request for an injunction to stop the sale of the Hayes Hotel to Collier Gibson.

Judge LaFlamme stated that the standard he must rule by is based on the merits and the public benefits of the case.

Jeffers had previously had a contract with the city to purchase the property which expired on Dec. 31, 2024.

How do you cure a default based on failure to close by deadline, the Judge asked Plaintiff's attorney.

Jeffers' attorney also stated they will file an Interlocutory Appeal to the Michigan Court of Appeals, and well as file an Amended Complaint to the 4th Circuit.

Jeffers' attorney stated they believe the sale to Collier Gibson would cause irreparable harm to the Jeffers company, in that the Hayes Hotel is a unique property and cannot be replaced.

The developers still have a website up that shows their plans for renovating the building.