GARFIELD TWP. (AP) -- A bank is challenging a new state law signed by Republican Governor Rick Snyder that overturns a $2.4 million judgment against the brother of the state GOP chairman for a real estate deal gone bad.
A Wells Fargo bank lawyer says that the law is unconstitutional.
The Michigan Court of Appeals says David Schostak was personally responsible for the amount owed on Cherryland Center when it defaulted on a mortgage. The mall is in Grand Traverse County's Garfield Township, southwest of Traverse City.
Schostak is a co-chief executive of the Schostak Brothers real estate company and brother of Michigan Republican chairman Bobby Schostak.
Southfield real estate businessman Michael Berger says the appeals court decision could have thrown many Michigan developers into bankruptcy.
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