In rе PETITION BY WAYNE COUNTY TREASURER FOR FORECLOSURE OF CERTAIN LANDS FOR UNPAID PROPERTY TAXES (WAYNE COUNTY TREASURER v WESTHAVEN MANOR LIMITED DIVIDEND HOUSING ASSOCIATION)
Docket No. 249807
Court of Appeals of Michigan
Submitted August 11, 2004. Decided February 24, 2005.
265 Mich. App. 285
Leave to appeal sought.
In re WAYNE CO TREAS PETITION
285
In re PETITION BY WAYNE COUNTY TREASURER FOR FORECLOSURE OF CERTAIN LANDS FOR UNPAID PROPERTY TAXES (WAYNE COUNTY TREASURER v WESTHAVEN MANOR LIMITED DIVIDEND HOUSING ASSOCIATION)
Docket No. 249807. Submitted August 11, 2004, at Detroit. Decided February 24, 2005, at 9:00 a.m. Leave to appeal sought.
The Wayne County Treasurer petitioned the Wayne Circuit Court for foreclosure on several parcels of property under the General Property Tax Act,
The Court of Appeals held:
1. The circuit court retained subject-matter jurisdiction over its previously issued foreclosure judgment to determine if an interested party‘s minimum due process rights were violated by a lack of notice of the foreclosure. The circuit court may modify or
2. The circuit court applied the wrong standard in determining whether minimum due process was observed and remand is necessary for a determination of that issue. Strict compliance with statutory notice provisions is not necessary. If on remand the circuit court determines that the notice procedures did not accord minimum due process, then it is within the court‘s jurisdiction under MCR 2.612(C) to vacate the foreclosure judgment and void the sale of the property to RE/MAX.
Reversed and remanded.
ZAHRA, J., concurring, agreed that the circuit court erred in vacating its foreclosure judgment and declaring the foreclosure certificate and quitclaim deed void, but reached that conclusion because the circuit court lacked subject-matter jurisdiction to invalidate the proceeding underlying the foreclosure judgment and the petitioner‘s absolute title to the Wеsthaven parcel absent a violation of the minimum due process required, which was not apparent from the record. Moreover,
TAXATION — TAX FORECLOSURES — CIRCUIT COURT — SUBJECT-MATTER JURISDICTION.
A circuit court retains its subject-matter jurisdiction over a previously issued foreclosure judgment to determine if the minimum due process required under
Azzam E. Elder, Corрoration Counsel, and Ellen E. Mason, Assistant Corporation Counsel, for the Wayne County Treasurer.
In re WAYNE CO TREAS PETITION
287
OPINION OF THE COURT
Loomis, Ewert, Parsley, Davis & Gotting, P.C. (by Michael H. Rhodes and Kevin J. Roragen), for Westhaven Manor Limited Dividend Housing Association.
Michael A. Cox, Attorney General, Thomas L. Casey, Solicitor General, and Matthew H. Rick, Assistant Attorney General, for the Michigan State Housing Development Authority.
Lawrence R. Walker, P.C. (by Lawrence R. Walker), for Western Wayne Realty, L.L.C.
Before: NEFF, P.J., and SMOLENSKI and ZAHRA, JJ.
SMOLENSKI, J. This is a foreclosure case brought pursuant to the General Property Tax Act (GPTA),
The significant issue in this case concerns the circuit court‘s subject-matter jurisdiction over its previous
I. BASIC FACTS AND PROCEEDINGS
On June 14, 2001, petitioner filed this foreclosure action in the Wayne Circuit Court concerning several parcels of property in Wayne County, including the Westhaven parcel. The Westhaven parcel housed a government-assisted apartment complex for senior citizens. Westhaven Manor Limited Dividend Housing Association (Westhaven Manor) owned the Westhaven parcel, subject to a mortgage held by the Michigan State Housing Development Authority (MSHDA). Petitioner sought to foreclose on the Westhaven parcel for failure tо pay special assessments for drainage improvements of $34.22 for 1997 and $61.15 for 1999, plus interest and fees, totaling approximately $356 when the petition was filed.
On March 4, 2002, the circuit court entered a judgment of foreclosure relating to several parcels of prop-
On March 3, 2003, Westhaven Manor and MSHDA (respondents) initiated postjudgment proceedings before the circuit court to vacate the March 4, 2002, judgment. Respondents claimеd that they did not have notice of the foreclosure action. Their motion raised issues concerning whether statutory notice errors occurred and whether their due process rights were violated. Respondents argued that a “proof of personal visit” that petitioner had filed with the circuit court in support of its request for foreclosure misrepresented that the Westhaven parcel was vacant, and that a notice of foreclosure had not been posted in a conspicuous place.
At a hearing in May 2003, the circuit court determined that respondents were entitled to relief from the March 4, 2002, judgment under MCR 2.612(C). The court granted respondents’ respective motions on the basis of its determination that petitioner failed to adhere to the statutory procedures regarding personal visits and plaсement of the foreclosure notice on the property. The court also noted that, when it ordered foreclosure of the Westhaven parcel, it did not conduct an individual analysis with respect to the property and petitioner‘s compliance with the statutory notice procedures. Thus, the court concluded that petitioner‘s actions failed to comport with due process. On June 20, 2003, the circuit court entered its order vacating the
II. SUBJECT-MATTER JURISDICTION
The principal issue on appeal is whether the circuit court had subject-matter jurisdiction over its previous March 4, 2002, judgment of foreclosure on the Westhaven parcel that vested title in petitioner, allowing the court to modify the judgment pursuant to MCR 2.612(C) (relief from judgment or order).
A. STANDARD OF REVIEW
“Whether a court has subject-matter jurisdiction is a question of law subject to review de novo.” Davis v Dep‘t of Corrections, 251 Mich App 372, 374; 651 NW2d 486 (2002). Also, the interpretation and application of a statute is a question of law reviewed de novo by an appellate court. Parkwood Ltd Dividend Housing Ass‘n v State Housing Dev Auth, 468 Mich 763, 767; 664 NW2d 185 (2003).
B. ANALYSIS
This case turns on our interpretation of the GPTA. The principles of statutory interpretation are well established. The primary goal of judicial interpretation of statutes is to ascertain and give effect to the intent of the Legislature. And the statutory language is the best
In general, subject-matter jurisdiction has been defined as a court‘s power to hear and determine a cause or matter. Bowie v Arder, 441 Mich 23, 36; 490 NW2d 568 (1992). The circuit court has “original jurisdiction in all matters not prohibited by law....”
Circuit courts have original jurisdiction to hear and determine all civil claims and remedies, except where exclusive jurisdiction is given in the constitution or by statute to some other court or where the circuit courts are denied jurisdiction by the constitution or statutes of this state.
Thus, circuit courts are presumed to have subject-matter jurisdiction unless jurisdiction is expressly prohibited or given to another court by constitution or statute. Bowie, supra at 38. Here, the essential question is whether the GPTA, as amended in 1999, divested the circuit court of jurisdiction to correct errors pertaining to tax foreclosure actions after a judgment of foreclosure was entered and the period for redemption expired.
It is the intent of the legislature that the provisions of this act relating to the return, forfeiture, and foreclosure of property for delinquent taxes satisfy the minimum requirements of due process required under the constitution of this state and the constitution of the United States but that those provisions do not create new rights beyond those
required under the state constitution of 1963 or the constitution of the United States. The failure of this state or a political subdivision of this state to follow a requirement of this act relating to the return, forfeiture, or foreclosure of property for delinquent taxes shall not be construed to create a claim or cause of action against this state or a political subdivision of this state unless the minimum requirements of due process accorded under the state constitution of 1963 or the constitution of the United States are violated. [Emphasis added.]
And the GPTA‘s applicable notice provision provides in pertinent part:
(2) The foreclosing governmental unit or its authorized representative shall determine the address reasonably calculated to apprise those owners of a property interest of the pendency of the show cause hearing under section 78j and the foreclosure hearing under section 78k and shall send notice of [these hearings] to those owners, to a person entitled to notice of the return of delinquent taxes under section 78a(4), and to a person to whom a tax deed for property returned for delinquent taxes was issued pursuant to section 72 as determined by the records of the state treasurer, by certified mail, return receipt requested, not less than 30 days before the show cause hearing. The failure of the foreclosing governmental unit to comply with any provision of this section shall not invalidate any proceeding under this act if the owner of a property interest or a person to whom a tax deed was issued is accorded the minimum due process required under the state constitution of 1963 and the constitution of the United States. [
MCL 211.78i(2) (emphasis added).]
Clearly, the applicable provisions of the GPTA require that interested parties, at a minimum, be provided with due process.
The notice provisions contained in
If the proceeding on which an order was based is subsequently determined to be invalid, as were the foreclosure proceedings in this case, then it follows that the order itself is invalid.
Fee simple title to property set forth in a petition for foreclosure filed under section 78h on which forfeited delinquent taxes, interest, penalties, and fees are not pаid within 21 days after the entry of judgment shall vest absolutely in the foreclosing governmental unit, and the foreclosing governmental unit shall have absolute title to the property. The foreclosing governmental unit‘s title is not subject to any recorded or unrecorded lien and shall not be stayed or held invalid except as provided in subsection (7). [Emphasis added.]
The minority would conclude that these provisions, when read together, mandate that only this Court may hold invalid the foreclosing governmental unit‘s absolute title to the property. But
The problem created by such an interpretation cannot be dismissed by relying on a remedy provision contained within the GPTA.
If a judgment for foreclosure is entered under section 78k and all existing recorded and unrecorded interests in a
parcel of property are extinguished as provided in section 78k, the owner of any extinguished recorded or unrecorded interest in that property who claims that he or she did not receive any notice required under this act shall not bring an action for possession of the property against any subsequent owner, but may only bring an action to recover monetary damages as provided in this section.
The section further provides that the Court of Claims has exclusive and original jurisdiction in claims for monetary damages.
If the minority‘s interpretation were adopted, the owner of the extinguished property interest, regardless of the circumstances under which his interest was extinguished, would be limited to a cause of action in the Court of Claims for monetary damages for the notice deficiency. We simply cannot agree with such an interpretation that would deprive an interested party of its property interest without being afforded due process. Such a reading renders the statute unconstitutional. Dow, supra; Ross, supra. Statutes are presumed to be constitutional and should be construed in such a manner if at all possible. Michigan United Conservation Clubs v Dep‘t of Treasury, 239 Mich App 70, 76; 608 NW2d 141 (1999), aff‘d, 463 Mich 995 (2001).
III. RE/MAX‘S REMAINING APPELLATE ARGUMENTS
Having resolved the parties’ jurisdictional dispute, we turn to the other issues raised by RE/MAX on appeal.
A. DUE PROCESS AND THE STATUTORY NOTICE REQUIREMENTS
Because we have determined that a circuit court retains jurisdiction if the owner of a property interest is deprived of due process, we next address RE/MAX‘s claim that the court erred in concluding that Westhaven
But the circuit court did not address whether Westhaven Manor was provided minimum due process. Instead, the court erroneously believed that strict compliance with the statutory provisions was necessary to satisfy due process. The cases cited by the court and respondents regarding the necessity of strict compliance involved prior versions of the GPTA, not the one at issue in this case. Thus, the court applied the wrong standard in determining whether Westhaven Manor‘s due process rights had been violated. Because of the intensely factual nature of this issue and the court‘s admission that it did not follow the procedure in
To guide the court in its analysis, we first note that Michigan‘s Due Process Clause has not been construed more broadly than its federal counterpart. People v Sierb, 456 Mich 519, 523-524; 581 NW2d 219 (1998); English v Blue Cross Blue Shield of Michigan, 263 Mich App 449, 459; 688 NW2d 523 (2004). Accordingly, the court may find helpful the due process principles discussed in Dusenbery v United States, 534 US 161, 167-168; 122 S Ct 694; 151 L Ed 2d 597 (2002), Smith v Cliffs on the Bay Condo Ass‘n, 463 Mich 420; 617 NW2d 536 (2000), and Dow, supra.
B. LAW OF THE CASE AND STARE DECISIS
RE/MAX also argues that thе circuit court did not follow “law of the case” and stare decisis principles, which required that the court not vacate the judgment of foreclosure. We disagree and find that neither doctrine is applicable to this case.
Under the law of the case doctrine, if an appellate court resolves a legal issue and remands to the trial court for further proceedings, the legal question determined by the appellate court will not be decided differently in a subsequent appeal in the same case if the facts remain materially the same. Grievance Administrator v Lopatin, 462 Mich 235, 259; 612 NW2d 120 (2000). Stated another way, the doctrine is applied when the prior appeal involves the “same set of facts, the same parties, and the same question of law ....” City of Manistee v Manistee Fire Fighters Ass‘n, 174 Mich App 118, 125; 435 NW2d 778 (1989). RE/MAX presents no appellate decision that involves the same set of facts and parties as the ones involved in the instant case. Thus, RE/MAX has failed to provide a basis for the doctrine‘s application.
We also reject RE/MAX‘s argument that the doctrine of stare decisis precluded the circuit court from considering respondents’ postjudgment motions. “Stare decisis” means “‘[t]o abide by, or adhere to, decided cases.‘” Robinson v Detroit, 462 Mich 439, 463 n 20; 613 NW2d 307 (2000), quoting Black‘s Law Dictionary (rev 4th ed). It is a principle of policy, rather than a mechanical formula for a court to adhere to its latest decision. Robinson, supra at 464, citing Helvering v Hallock, 309 US 106, 119; 60 S Ct 444; 84 L Ed 604 (1940). Because RE/MAX has not identified any appellate decision that was binding on the circuit court for purposes of deciding the postjudgment motions, the principle of stare decisis does not support RE/MAX‘s position that the court could not consider respondents’ motions.5
C. UNJUST ENRICHMENT AND CONSTRUCTIVE FRAUD
RE/MAX also argues that unjust enrichment and constructive fraud arе not bases for voiding petitioner‘s absolute title. But these contentions are of little consequence because the circuit court did not make a specific finding of fraud and did not vacate petitioner‘s title on the basis of a determination that petitioner would be
Nevertheless, we agree that respondents’ constructive fraud argument presented below is ultimately a claim of lack of notice. Respondents attempt to frаme the essential question on appeal as involving whether petitioner was responsible for fraud or misrepresentation with respect to the personal visit requirement in
Lastly, RE/MAX asserts that the right of redemption is not punitive in nature. But RE/MAX does not clаim, nor does the lower court record indicate, that its argument is relevant to the circuit court‘s decision to vacate the March 4, 2002, judgment. “An appellant may not
IV. CONCLUSION
In this case, the redemption amount for the unpaid special assessments in 1997 ($34.22) and 1999 ($61.15) totaled $404.73 when the property was foreclosed, which included all penalties and interest. After questionable adherence to the notice procedures in
Reversed and remanded. We do not retain jurisdiction.
NEFF, P.J., concurred.
In re WAYNE CO TREAS PETITION
301
CONCURRING OPINION BY ZAHRA, J.
ZAHRA, J. (concurring).
I. INTRODUCTION
I agree with the majority‘s conclusion that the circuit court erred in vacating its judgment of foreclosure on the Westhaven parcel and by declaring null and void the certificate of forfeiture in favor of petitioner as well as the quitclaim deed transferring the Westhaven parcel from petitioner to RE/MAX. I write separately because I conclude the circuit court lacked subject-matter jurisdiction to invalidate proceedings underlying the judgment of foreclosure and petitioner‘s absolute title to the Westhaven parcel. Further, I would not remand this matter for a determination whether respondents’ due process rights were violated. Respondents have not properly preserved or presented any meritorious claim that they were denied their constitutional rights to due process, and the record does not indicate that respondents’ minimum due process rights were violated. Republic Bank v Genesee Co Treasurer, 471 Mich 732; 690 NW2d 917 (2005); Smith v Cliffs on the Bay Condo Ass‘n, 463 Mich 420; 617 NW2d 536 (2000).
II. ANALYSIS
The majority validatеs the circuit court‘s jurisdiction by relying on the requirement of
In Smith, our Supreme Court held “that mailing of tax delinquency and redemption notices to a corporation at its tax address of record in the manner required by the [GPTA] is sufficient to provide constitutionally adequate notice.” Smith, supra at 421-422. More recently, our Supreme Court observed that the failure to comply strictly with statutory notice requirements alone does not give rise to a due process claim. Republic Bank, supra at 739-742. The critical question is whether an individual has been given a “‘meaningful opportunity to be heard....‘” Id. at 742. (citations omitted).
The record reflects that petitioner sent notices of the foreclosure through certified mail to all respondents’ addresses revealed by a title search of the Westhaven parcel. Admittedly, one of the two mailings to Westhaven Manor‘s listed addresses was returned by the post office as undeliverable, though a receipt for the other was returned as delivered. Also, the mailing to MSHDA was returned by the post office as “unknown.” However, that some of the notices did not reach their intended dеstination “does not impose on the state the obligation to undertake an investigation to see if a new address for the [respondents] could be located.” Smith, supra at 429. Further, “there is nothing to indicate that the [petitioner] had been informed of a new address for the [respondents]. Id. Petitioner served notice of foreclosure by publication on three separate occasions. And although it appears that petitioner, through its agent, failed to comply strictly with aspects of the personal visitation requirement of the GPTA, notice of foreclo-
The lack of merit to any due process claim is bolstered by thе parties’ arguments on appeal, which do not properly present or preserve any meritorious claim regarding a failure to provide minimum due process. Specifically, MSHDA concedes in its brief on appeal that it “did not argue in the Circuit Court that [petitioner] violated its due process rights,” and that “the issue in this case is not whether MSHDA‘s lack of notice violated due process.”1 Westhaven Manor likewise concedes in its brief on appeal that “[i]n no way, shape or form... [did] the Circuit Court [hold] that a violation of Westhaven‘s due process rights occurred here.” Rather, respondents contend that the circuit court had authority under MCR 2.612(C) to set aside the order of foreclosure because petitioner failed to comply with the notice provisions of the GPTA, and compounded this failure by erroneously representing to the circuit court that it had fully complied with the notice provisions under the GPTA. Respondents do not assert they were denied their due process rights. Rather, respondents merely argue that they have experienced the type of injustice that MCR 2.612 is intended to remedy. However, in the absence of a due process violation, the circuit court lacked subject-matter jurisdiction to in-
The circuit court also lacked subject-matter jurisdiction to invalidate the foreclosing government‘s absolute title to the Westhaven parcel. The circuit court specifically ordered that “the Certificate of Forfeiture ... as well as the subsequent quitclaim deed purporting to transfer [the Westhaven parcel] from [petitioner] to [RE/MAX] ... are declared to be null and void and of no effect ....” At all times relevant to this dispute,
Fee simple title to property set forth in a petition for foreclosure filed under section 78h on which forfeited delinquent taxes, interest, penalties, and fees are not paid within 21 days after the entry of judgment shall vest absolutely in the foreclosing governmental unit, and the foreclosing governmental unit shall have absolute title to the property. The foreclosing governmental unit‘s title is
not subject to any recorded or unrecorded lien and shall not be stayed or held invalid except as provided in subsection (7). [Emphasis added.]
Subsection 7 provided that a “person claiming to have a property interest under section 78i in property foreclosed under this section may appeal the circuit court‘s judgment foreclosing property to the court of appeals.”
In re WAYNE CO TREAS PETITION
307
CONCURRING OPINION BY ZAHRA, J.
Furthermore, this conclusion is required by provisions of the GPTA that specifically address the present situation and provide a legal remedy for respondents’ claim that petitioner did not provide proper notice of the foreclosure proceedings.
(1) If a judgment for foreclosure is entered under section 78k and all existing recorded and unrecorded interests in a parcel of property are extinguished as provided in section 78k, the owner of any extinguished recorded or unrecorded interest in that property who claims that he or she did not receive any notice required under this act shall not bring an action for possession of the property against any subsequent owner, but may only bring an action to recover monetary damages as provided in this section.
(2) The court of claims has original and exclusive jurisdiction in any action to recover monetary damages under this section.
(3) An action to recover monetary damages under this section shall not be brought more than 2 years after a judgment for foreclosure is entered under section 78k.
The Legislature‘s clear statement in
III. CONCLUSION
In sum, I conclude that the circuit court lacked subject-matter jurisdiction to set aside its judgment of foreclosure and to declare null and void the certificate of forfeiture in favor of petitioner and the quitclaim deed transferring the Westhaven parcel from petitioner to RE/MAX. I would vacate the circuit court‘s postjudgment order dated June 20, 2003. I would not remand this case for further proceedings to address a due process issue that is not supported by the existing record, particularly inasmuch as the respondents have failed to properly preserve or present the issue on appeal.
Notes
“The controlling test as to the meaning of a statutory provision is always the legislative intent when fairly ascertainable. But the ‘intent’ referred to is the one entertained by the legislature at the time of the passage of the act, and not the intent expressed by a subsequent amendment. In the instant case, to interpret the subsequent amendment as an indication of the legislature‘s original intent would be mere speculation, not judicial cоnstruction.” [Detroit Edison Co v Dep‘t of Revenue, 320 Mich 506, 519; 31 NW2d 809 (1948), quoting Iron Street Corp v Unemployment Compensation Comm, 305 Mich 643, 655; 9 NW2d 874 (1943).]
Thus, recent amendments of the GPTA offer only speculation in regard to the Legislature‘s intent in enacting the statutes at issue.
Westhaven Manor further argues that if
Moreover, the limitations established by our Legislature are not merely procedurаl rules, but reflect substantive policy considerations relating to the expeditious return to productive use of property returned for delinquent taxes. See
Also without legal merit is respondents’ claim that the circuit court historically has powers in tax foreclosure cases to modify its judgments. As mentioned, the divesture of jurisdiction can be accomplished under a clear mandate of law. Wikman, supra. Also, a court of equity‘s inherent powers to correct mistakes in a judgment may be limited by the Legislature. Cole v Auditor General, 132 Mich 262, 265; 93 NW 890 (1903). “Courts of equity, as well as of law, must apply legislative enactments in accord with the plain intent of the legislature.” City of Lansing v Lansing Twp, 356 Mich 641, 650; 97 NW2d 804 (1959).
I also reject respondents’ attempt to justify circuit court jurisdiction under MCR 2.612(C) by claiming petitioner‘s failure to strictly comply with