In this May 21, 1998 photo, David Schostak of Schostak Brothers & Company, a partner in Kern Woodward Associates, speaks to reporters about the Campus Martius development plan announced by Detroit Mayor Dennis Archer.
Rick Snyder that would overturn a $2.4 million judgment against David Schostak, the brother of state GOP chairman Bobby Schostak for a northern Michigan real estate deal gone bad. (AP Photo/Detroit Free Press, Nico Toutenhoofd)
A Grand Traverse County judge ruled that David Schostak
was personally responsible for the amount owed on a Garfield Township shopping center when it defaulted on a mortgage.
is owned by Cherryland Mall LP
, a Schostak Bros. entity.
Schostak is co-chief executive of the Livonia real estate company.
The company halted payments on its mortgage in 2009, and the bank foreclosed in 2010.
The Michigan Court of Appeals
upheld the ruling in December, saying that Cherryland Mall LP's
insolvency "triggered the full recourse provision of the mortgage."
A bill to reverse the decision and retroactively clear David Schostak
was approved this session with strong support in the Republican-controlled Legislature.
It passed 32-5 in the Senate and 97-12 in the House.
"Did we do it for Schostak?