A Michigan Court of Claims judge has denied Carvana's request that a temporary restraining order be granted against Michigan Secretary of State Jocelyn Benson for suspending its operations at its location in Novi.

Earlier this month, state officials suspended the license of the Carvana dealership in Novi for "imminent harm to the public," a claim Carvana called "baseless." The state said Carvana LLC, owned by Paul Breaux and located off of Novi Road near I-96, committed several alleged violations of the Michigan Vehicle Code. The alleged violations were discovered during an investigation by the state regulatory staff of multiple complaints from consumers about title problems with their vehicles.

On Oct. 13, Carvana fired back by filing injunction motions with the Michigan Court of Claims asking for an immediate stop to the state’s suspension. Carvana spokesperson Kristin Thwaites said at the time that the suspension was an, "illegal and irresponsible attempt to shut down a growing Michigan business" over "technical paperwork violations involving title and transfer issues." In the Oct. 13 filing, Carvana said the state's suspension violated the Michigan Vehicle Code that it said mandated a hearing be held prior to a suspension.

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On Wednesday, Michigan Court of Claims Judge Thomas Cameron ruled the "defendant’s decision to suspend plaintiff’s license without a hearing is statutorily permitted and therefore declines to find a violation of plaintiff’sdue process rights."

Cameron also said that Carvana did not offer any evidence to support its claim that the suspension caused "irreparable injury to its goodwill" or how this loss affects its “overall economic well-being.” Cameron wrote: "Plaintiff states it 'is the second-largest used car retailer in the United States and has sold over 1 million vehicles.' Thus, plaintiff’s assertion that it suffered loss of goodwill due to the suspension is insufficient to show irreparable harm, in particular because plaintiff’s Michigan-based sales are a subset of its overall operations. Moreover, the suspension affects plaintiff’s sales only at its vending machine in Novi, but not its overall online sales."

Carvana's Thwaites told the Free Press in an email Thursday that the Secretary of State has agreed it can continue selling online to Michigan customers while the matter is addressed. Carvana plans to do that, but declined to outline how cars sold online would be delivered to customers.

In reaction to the judge's ruling, she said, "We are disappointed by the court’s decision and we are considering all legal options to protect our customers and ensure the Secretary of State is held accountable for their illegal actions."

Carvana maintains its view that the Secretary of State’s suspension is "an illegal and reckless attempt" to shut it down over technical paperwork violations.

"The Secretary of State has brazenly violated its own rules, regulations and due process requirements while making false and reckless statements rather than engaging in constructive dialogue to remedy these technical paperwork issues," Thwaites said in an email. "As we consider next steps, we will continue serving extraordinary online car buying and selling experiences to our Michigan customers, and we will continue collaboratively working with state bureaucrats to remedy these issues as quickly as possible."

Michigan Department of State spokeswoman Aneta Kiersnowski Crisp said the state has received more than 100 complaints from consumers since suspending the dealership. She issued a previously released statement in reaction to the ruling that said the state protects consumers in strict accordance with state and federal laws.

"Department staff met with Carvana on multiple occasions to explain Michigan law and suggest pathways to compliance," Crisp said. "But instead Carvana continued selling vehicles without titles to scores of Michigan families, putting the residents at risk of legal violations, fines, and other penalties."

Cameron's ruling stated that a preliminary conference was scheduled for Oct. 20 and an administrative hearing on the matter scheduled for Nov. 22. During the Oct. 20 meeting, "Carvana provided some of the information the department requested for consideration ahead of the Nov. 22 administrative hearing," Crisp said. No further details were provided.

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Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.

This article originally appeared on Detroit Free Press: Judge denies Carvana's request for restraining order against Michigan