DEARBORN, Mich. — On Oct. 12, a Michigan state court heard the first arguments in whether the $1.7 billion DFCU Financial would have to finally hold the special meeting at which members could recall one or all members of the board.

But rather than clarifying the dispute, which stemmed from the credit union's attempt to change its charter to a mutual bank earlier this year and the withdrawal of its application, little was decided.

According to Margaret Blohm, one of the plaintiffs in the case, and other sources on the scene, the confusion got underway when it became evident that a mistake on the part of the court had resulted in Wayne County Circuit Court Judge Cynthia Stephens not being shown the complete briefs of both arguments. The situation got even more confusing when, in chambers, Judge Stephens heard for the first time that DFCU Board Chairman Harold Lowman and Susan Smulsky, also a board member as well as chair of the supervisory committee, had stepped down.

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