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Michigan hospital announces planned merger

Board members with Ludington-based Memorial Medical Center recently signed a nonbinding letter signifying the facility's intent to merge with Spectrum Health System, one of a number of systems MMC reportedly considered. The chairman of the MMC board said the center chose Spectrum for its ability to help MMC expand services and patient access as well as its support for the facility's "commitment and sense of mission" and general understanding of West Michigan.

MMC announced in late 2012 that it was interested in signing a purchase agreement with a larger health system and would begin searching for potential partners. A nationwide vetting process began, during which the 87-bed hospital's board and a contracted advisory firm reviewed a total of 27 health care systems before unanimously deciding on Spectrum. Memorial Medical Center's current board of directors will remain intact following the merge, a provision that board members say will help ensure more local oversight in operating the facility.

Toys R Us hopes to overturn $20M award with appeal

Toys R Us is slated to ask a state court to reverse a five-year-old ruling that called for it to hand over $20 million to the family of a 29-year-old woman who died after using an inflatable pool slide sold by the company. The woman suffered fatal injuries when the slide collapsed, causing her to strike her head against a concrete deck. Her family sued Toys R Us, arguing that they failed to comply with federal safety rules.

According to the Michigan-based Detroit Free Press, Toys R Us contends that the family's product liability lawsuit and subsequent award was based on a regulation that does not apply to inflatable pool slides, but rather rigid slides. Additionally, the toy retailer asserts that the plaintiffs wrongfully inflamed the jury by claiming that it imported and marketed an "illegal" product, despite the fact that Toys R Us sold the slide having received a certification confirming the slide's accordance with all pursuant safety regulations.

Michigan venture firm Start Garden ends first year

In the year since its founding, Michigan-based Start Garden has helped fund over 100 businesses, investing approximately $2.3 million in project ranging from sustainable African food to revolutionary business software. Start Garden's founder, the grandson of another prominent Michigan entrepreneur, says he hopes to push Michigan to embrace new ideas and take risk on potentially ground-breaking startups.

Start Garden recently completed its first year, during which time it supported hundreds of business ideas in a wide range of industries. Every week, the company chooses two projects for a $5,000 investment. One of these businesses is selected solely by Start Garden, while the other is chosen via an open online poll. Some businesses go on to raise a substantial amount of funds, while others earn less. For instance, Start Garden invested around $500,000 in a business developing software aimed at facilitating communication between corporate computer systems, while a firm developing boxed food for Africa received $5,000.

Michigan man faces litigation over Twitter name

A Michigan man faces a lawsuit from popular Michigan restaurant chain, Halo Burger, after he refused to stop using and relinquish his "@haloburger" Twitter user name. The man, who claims to be a fan of the restaurant, reportedly adopted the online handle in 2009. Halo Burger contends it was forced to pursue liability after the man said he would not hand over the handle without payment. The lawsuit asserts that the man "squatted the Halo Burger name" on Twitter with the intent to extort money from the business.

According to the man's attorney, Twitter registers user names on a "first-come, first--served basis," meaning that his client did not act wrongfully in securing the handle. He noted that his client's Twitter profile states that it is not associated with Halo Burger and says the man has not attempted to use the name to claim he is associated with the business or the source of its services and goods. The attorney contends that such behavior would be required to prove claims of unfair competition or trademark infringement.

FirstMerit Corp. approves purchase of Michigan bank

Shareholders with an out-of-state financial institution recently approved a plan to acquire the Michigan--based Citizens Bank. Citizens' own shareholders are expected to approve the deal during an upcoming meeting, which would effectively complete the company's sale to FirstMerit Corp.

FirstMerit is hoping the $912 million stock--for--stock purchase, the largest in its history, will allow it to expand further into Michigan and take advantage of Citizens' existing base of clients. The deal marks the firm's first acquisition since 2010 and will make it the sixth largest banking group in the Midwest. All 219 of Citizens' locations in Michigan and surrounding states will be rebranded to reflect their new owner. The transaction is projected to end by June 2013, assuming Citizens approves the deal.

Michigan start-up service seeing rapid growth

A Michigan-based start-up service aimed at increasing agriculture productivity is quickly attracting clients just months after it was launched. Two Michigan men, 23 and 24, started the company after graduating from college in 2011 and living for several months in Silicon Valley in 2012. The pair launched FarmLogs, a set of digital tools designed to help farmers manage their businesses, after relocating to Michigan. The business already has paying customers on six continents and $1 million from investors like Detroit's First Step Fund and Ann Arbor's Huron River Ventures.

The men say they decided to start FarmLogs after they noticed local farmers did not have access to technology that could help them better operate their businesses. One of the company's cofounders stated that most people were still keeping their records on papers and spreadsheets and they realized that their backgrounds put them in the perfect position to help them.

Michigan restaurant owner and builder dispute contract

Picketers are protesting outside of a newly opened Michigan eatery over unpaid wages, but the restaurant's owner contends that their complaints are misguided. While the protestors assert that the owner failed to pay them their wages for their work remodeling the restaurant, the owner says the issue at hand is a business contract between him and the protestors' employer.

The owner explained that he signed an agreement with a local contractor to remodel the site of his business. He explained that their business established a strict time frame for the completion of the project, with the contractor incurring a harsh fee for every late day. According to the owner, the contractor finished three months behind schedule, which he claims means the contractor actually owes him money.

City officials approve Michigan theater's bid for special liquor license

A planned movie and dinner business will be allowed to move forward with its efforts to secure the special form of liquor license it needs to open in Michigan after the Kalamazoo City Commission unanimously approved its request, allowing the company to petition the Michigan Liquor Control Commission for the license. The firm filing the petition, which has locations in seven other states, would remodel an existing movie theater in order to add the facilities and staff needed to serve meals to patrons before and after films. The theater's operators say their business model has found success in a number of markets and is likely to do so again in downtown Kalamazoo.

Liquor licensing laws in Michigan can be quite complex, making the expert advice of a qualified attorney invaluable. For instance, municipalities in the state typically face quotas dictating the number of liquor licenses they can issue to local businesses, though the LCC sometimes awards additional licenses if they believe they will increase the quality of life for their communities. Officials say Kalamazoo is running out of the Class C liquor licenses the theater would need to open, with a number of licenses not in use despite being held by various owners, prompting the company to seek a special license from the LCC.

Judge rejects former Michigan firm execs' pension claims

A U.S. Bankruptcy judge has denied pension claims submitted by former executives with Chrysler LLC. The judge ruled that the five ex-executives did not qualify for supplemental pension coverage as granted by the Michigan auto giant's 2009 bankruptcy. As part of that bankruptcy, Chrysler agreed to pay for active executives' supplemental pensions but did not extend the same protection to retired executives.

The judge asserted that the former executives' benefits should have been transferred to the new post-bankruptcy Chrysler that emerged from bankruptcy in June 2009. The bankruptcy essentially upended the business and its few remaining viable assets, all of which were transferred to a new company as most of those holding the Chrysler's debt lost their investments. Following the bankruptcy, Italian automaker Fiat purchased 20 percent of Chrysler. The company has since paid back the majority of its $12.1 billion in taxpayer loans.

Michigan firm acquires Hong Kong company for $764M

Michigan's Stryker Corp. recently finalized its purchase of Hong Kong-based Trauson Holdings Company Limited, hoping the multimillion dollar acquisition will help it expand its presence in China's burgeoning orthopedic market. Stryker paid around $764 million in cash for control of Trauson, which is currently the largest producer of pelvic reconstruction plates and other trauma surgery products in China.

According to Stryker's chief executive, the purchase will improve the Michigan company's position in China and make it easier to "expand into the fast growing value segment of the emerging markets." He added that the firm is excited to build on Trauson's past success. Prior to the merger, Trauson and Stryker entered into a manufacturing agreement in 2007, though the Chinese company remained a major competitor in the production and spine orthopedics. Trauson, which was founded in 1986, listed roughly $60 million in sales in 2011. Analysts with Bloomberg estimate the company's gross profit margins to significantly surpass 60 percent.

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