General Motors decided to move a car producing operation to Arlington, Texas, from a plant located in Ypsilanti, Michigan.
As a result, the township of Ypsilanti brought a lawsuit to stop General Motors from making the move. Ypsilanti argued that GM had promised to keep the plant in Ypsilanti in exchange for certain tax privileges. The township argued further that it had relied on those promises when it granted that tax abatement to the corporation.
Therefore, GM should be forced to keep its promise to maintain the Ypsilanti plant. Should the court stop this move based on the doctrine of promissory estoppel ? Explain.
Charter Township of Ypsilanti v. General Motors, 508 N.W.2d 556 (Michigan Court of Appeals).