In Re Petition of Wayne County Treasurer for Foreclosure
367984
| Mich. Ct. App. | Jan 17, 2025Background
- Respondents (Derby Properties, LLC and Justin Voigt) failed to pay property taxes on six properties in Detroit for three consecutive years (2019-2021).
- The Wayne County Treasurer (Petitioner) initiated administrative and judicial foreclosure proceedings on the properties, providing notice by certified mail, first-class mail, publication, and posting.
- Respondents did not contest the foreclosure or redeem the properties; a judgment of foreclosure was entered, vesting title with the county if redemption was not made by March 31, 2022.
- Following foreclosure, respondents moved to intervene, set aside the judgment, and later, to claim the surplus proceeds from the foreclosure sale under MCL 211.78t; all motions were denied by the trial court.
- Respondents appealed the denial of their motion to claim the surplus proceeds, arguing procedural and statutory errors.
Issues
| Issue | Respondents' Argument | Treasurer's Argument | Held |
|---|---|---|---|
| Appellate Jurisdiction | Appeal of postjudgment surplus proceeds denial allows challenge to prior orders | Only foreclosure judgment appeal can challenge earlier orders | Court has jurisdiction to review prior orders via final order appeal |
| Adequacy of Notice | Certified mail was ineffective (receipts marked “Covid-19” rather than signatures) | Notice was provided by all statutory means; actual receipt not required | Statutory and constitutional notice requirements met; no defect |
| Timeliness of Surplus Claim | Claim was timely as judgment not final until appeals exhausted; effective date extended by stipulation | "Effective date" defined by statute (March 31); parties cannot contractually alter it | Statutory effective date controls; parties cannot extend it; claim untimely |
Key Cases Cited
- Sidun v. Wayne Co Treasurer, 481 Mich 503 (due process for notice before property forfeiture; actual receipt not required)
- Republic Bank v. Genesee Co Treasurer’s Petition, 471 Mich 732 (adequacy of notice determined by due process, not statute-specific technicalities)
- In re Treasurer for Wayne Co for Foreclosure, 478 Mich 1 (GPTA’s procedures presumptively satisfy due process)
- Bonner v. Brighton, 495 Mich 209 (standard for review of statutory and constitutional issues)