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Supreme Court Asked to Review Controversial Healthy Kids Dental Contract

Cliff Taylor, John Bursch join legal team to argue before state’s highest court

FOR IMMEDIATE RELEASE: Thursday, March 29, 2018

MQT., MICHIGAN – MCNA, a national provider of dental benefits, today filed an appeal with the Michigan Supreme Court seeking to reverse an appeals court decision dismissing a lawsuit against the state over the unlawful award of a $659 million Healthy Kids Dental contract to an unqualified bidder with political clout.

“We are taking this fight to the state’s highest court because the citizens of Michigan deserve a full accounting of how taxpayer dollars are being spent, and to shine a light on a deeply flawed and highly political bidding process that has undermined Michigan’s stated commitment to transparency and competitive bidding,” said Carlos Lacasa, Vice President and General Counsel of MCNA. “It is our hope that when Supreme Court Justices review the facts of this case, they’ll see the fatal flaws in the state’s procurement process, which favors political clout over experience and results.”

MCNA has added prominent lawyers Clifford Taylor and John Bursch to its legal team as it prepares to argue its case before the state Supreme Court. Mr. Taylor is a former Chief Justice of the Michigan Supreme Court, and Mr. Bursch is a former Michigan Solicitor General with a storied track record of successfully arguing cases before the U.S. Supreme Court and Michigan Supreme Court.

“Our appeal to the state Supreme Court and the additions to our legal team should send a strong message to the state and its elected leaders that we’re not backing down and refuse to see taxpayer dollars squandered on a program so critical to children in underserved areas of the state,” Lacasa said.

MCNA filed two lawsuits in January, one over the wrongful award of the contract and another over the state’s multiple violations of the Freedom of Information Act (FOIA). In February, an Ingham County Judge ordered a state official to be deposed over the contract award after an attorney for the state admitted the state allowed a preferred bidder to change its bid, but then could not explain why that bidder was given preferential treatment over MCNA and others. Earlier this month, an Appeals Court summarily struck down that order and dismissed the case, without allowing MCNA to even brief or argue the merits of the case.

“The primary legal issue is straightforward and of great importance to Michigan taxpayers,” said Bursch. “The Court of Appeals said that MCNA has no right to seek judicial review of state procurement decisions. But Michigan law says that an aggrieved party may appeal ‘any’ decision of ‘any’ state agency. MCNA simply wants its day in court. Without that day, no court will ever be able to look beyond the curtain in a procurement decision. Taxpayers are entitled to that transparency.”

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