Court Denies Preliminary Injunction in Battle Over City Charter Powers

GRAND RAPIDS, Mich. — A federal judge ruled against Grand Rapids city comptroller Max Frantz last month in his lawsuit challenging recent financial restructuring decisions by city officials, dealing a setback to his effort to restore what he says are constitutionally protected powers of his elected office.

Judge George Jay Quist of the 17th Circuit Court of Kent County denied Frantz's request for a preliminary injunction and refused to order the city to pay his legal expenses, according to court documents filed in December 2026.

The case centers on whether city officials violated the Grand Rapids city charter by transferring duties, staff, and budget authority from the comptroller's office to the city manager and chief financial officer offices.

"While the Court respects Plaintiff's arguments regarding the alleged violations, he has failed to meet his burden of proving success on the merits. It is too early in the case for the Court to make an informed decision regarding whether Defendants violated the Charter, the Home Rule City Act, and/or the Uniform Budgeting and Accounting Act," Judge Quist wrote in the ruling.

Frantz Alleges Misuse of Authority and Budget Violations

Frantz filed his complaint in December 2025, alleging that city officials violated the city's charter by consolidating financial responsibilities that the charter specifically assigns to the elected comptroller office.

In his lawsuit, Frantz claims he filed a complaint with the Michigan State Police in August 2024, alleging that City Manager Mark Washington had misused city funds. The comptroller said Washington used city funds to pay a $323 restaurant bill at Bistro Bella Vita and attempted to have the city cover an $822 restaurant bill on behalf of an organization of which he was a board member.

"My concern is absolutely misuse of authority," Frantz told Michigan Capitol Confidential in a phone interview. "These internal controls were set up for a reason. Whether it's something one week from now, six months from now, or five years from now, the groundwork has been laid to create that type of environment to allow for misuse of authority by concentrating all of these powers under one individual or office, which our charter doesn't authorize."

Frantz said the local prosecutor declined to press charges, but he approached state police again in November 2024, alleging that Chief Financial Officer Molly Clarin and others may have violated the Open Meetings Act.

The next month, according to Frantz's lawsuit, the city manager and city attorney began moving to transfer some of the comptroller's responsibilities to the city manager's subordinates.

"This is how the system is set up by design," Frantz said. "We've had checks and balances in our government that really serve to benefit the public. The issue is that the city manager with this fiscal services department created financial officers reporting to the city manager, which have usurped the duties of the comptroller's office."

The $1.3 Million and 13 Employees at Stake

According to Frantz's lawsuit, the transfer involved 13 employees and $1.3 million in funding.

The city charter creates three divisions to manage finances: the treasurer collects city money, the city manager builds the budget, and the comptroller issues payments of funds and provides accounting to the public.

Frantz, an elected official serving a four-year term through 2026, argues that consolidating spending and auditing functions in the same department creates a clear conflict of interest.

"The lawsuit aims to restore the separation of powers that's provided for under the city charter," Nicholas Gumina, an attorney at Eardley Law offices that represents Frantz, told Michigan Capitol Confidential. "The separation of powers, at its core, is important because it creates a separate financial oversight that is not supposed to be controlled by either the executive or legislative branches of the city government."

Frantz wrote in the lawsuit that Grand Rapidians have rejected similar structural changes in 1969, 1971, and 2012.

City Officials Defend Reorganization

The Grand Rapids City Commission rejects the accusations against the city's financial restructuring.

A city spokesperson told Michigan Capitol Confidential in an email that the 2024 reorganization optimized the city's financial structure and was "rooted in good governance."

"As stated in a prior media release, in 2024, the city manager, in consultation with the city treasurer, human resources director, and city attorney, determined that certain positions based on their functions would more appropriately report to the City's chief financial officer or the city treasurer," Steven J. Guitar, media relations manager, wrote.

Guitar continued that "as evidenced in the comptroller's recently presented annual comprehensive financial report, the City fully embraces the comptroller's independent review and reporting of our public finances."

The Grand Rapids City Commission appoints the city manager to serve as the chief executive officer for the city. Meanwhile, Frantz is an elected official whose term stretches through 2026.

Commissioners appointed Frantz as comptroller in December 2019 after the previous comptroller resigned. He won a four-year term when he ran unopposed in 2022.

What Comes Next

Judge Quist's ruling means the case will proceed to discovery and potentially trial, where Frantz would need to prove that the city officials violated the charter.

"Because Plaintiff has the burden of proof, the Court finds this factor is neutral and favors denying the preliminary injunction," Quist wrote.

The city has not commented on what the next steps might be in the case.

The comptroller position is a part-time, elected role that serves as an independent check on city finances, separate from both the executive and legislative branches.