Family Traditional Holdings LLC v. Wayne County Treasurer
333349
| Mich. Ct. App. | Nov 14, 2017Background
- In 2014 Wayne County Treasurer began foreclosure for unpaid 2012 taxes, interest, penalties, and fees (TIPF) on property owned by Family Traditional Holdings, LLC.
- On January 6, 2015 the parties executed a Stipulated Payment Agreement (SPA) in which plaintiff acknowledged the foreclosure petition and agreed to a payment schedule; SPA extended the redemption date and required 60% of TIPF by June 10, 2015 and full payment by December 9, 2015, with any modification required in writing and plaintiff waiving any hearing rights.
- Plaintiff failed to comply with the SPA payment schedule; defendant foreclosed and obtained fee simple title under MCL 211.78k(6).
- Plaintiff filed suit after foreclosure alleging a post-foreclosure verbal offer by the treasurer’s deputy to allow redemption and that defendant later refused to honor that verbal agreement, and also asserting inadequate notice of foreclosure.
- Defendant moved for summary disposition under MCR 2.116(C)(4) (lack of subject-matter jurisdiction) and (C)(10) (no genuine issue of material fact); trial court found the SPA provided constitutionally adequate notice and that any verbal modification was barred by the SPA’s written-modification clause, and granted summary disposition.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court had jurisdiction to hear collateral attack on foreclosure | SPA and later verbal promise failed to provide constitutionally adequate notice, so court may review and grant relief | Perfecting Church limits collateral attacks absent denial of due process; SPA provided constitutionally adequate notice, so court lacks jurisdiction | Court has jurisdiction limited to due-process challenge; held jurisdiction proper to review notice and found no due-process violation |
| Whether the SPA provided constitutionally adequate notice of foreclosure | SPA did not give actual notice of when full TIPF was due; verbal post-foreclosure promise created factual dispute | SPA plainly notified plaintiff of foreclosure, the 60%/deadline terms, and required written modification; verbal agreement irrelevant and nonbinding | SPA constituted notice reasonably calculated to apprise plaintiff; constitutionally adequate notice was given |
| Whether alleged verbal agreement (post-foreclosure) created a material factual dispute | The verbal agreement altered redemption timing and created a question of fact about notice and opportunity to redeem | Any alleged verbal modification is barred by SPA’s written-modification clause and occurred after title had vested in the treasurer, so it is immaterial | Verbal agreement (even if existed) was irrelevant because it post-dated the foreclosure and the SPA required written modification |
| Whether summary disposition was proper under MCR 2.116(C)(10) and (C)(4) | Disputed facts precluded summary disposition | Documentary evidence (signed SPA) shows no genuine issue and trial court lacked jurisdiction to alter foreclosure absent due-process defect | (C)(10) granted because no factual dispute about SPA’s notice; (C)(4) granted because no constitutional defect found, so court lacked power to alter foreclosure |
Key Cases Cited
- In re Treasurer of Wayne Co for Foreclosure, 478 Mich 1 (2007) (statutory restrictions on collateral attacks unenforceable where owner was denied constitutionally adequate notice)
- Jones v. Flowers, 547 U.S. 220 (2006) (due process requires notice reasonably calculated to inform interested parties of pending forfeiture)
- Sidun v. Wayne Co. Treasurer, 481 Mich 503 (2008) (tax-foreclosure proceedings require constitutional due process protections)
- Gillie v. Genesee Co. Treasurer, 277 Mich App 333 (2007) (distinguishes statutory notice from constitutional notice; title transfer depends on constitutionally adequate notice)
- Morrissey v. Brewer, 408 U.S. 471 (1972) (due process is flexible and depends on the circumstances)