Detroit Building Authority v. Wayne County Treasurer

Order                                                                      Michigan Supreme Court
                                                                                 Lansing, Michigan

  September 28, 2007                                                                Clifford W. Taylor,
                                                                                             Chief Justice

  129743                                                                           Michael F. Cavanagh
                                                                                   Elizabeth A. Weaver
                                                                                          Marilyn Kelly
                                                                                     Maura D. Corrigan
  DETROIT BUILDING AUTHORITY,                                                      Robert P. Young, Jr.
           Plaintiff/Cross Defendant-                                              Stephen J. Markman,
                                                                                                  Justices
           Appellee,
  and
  CITY OF DETROIT,

            Intervening Plaintiff/Counter 

            Plaintiff/Cross Plaintiff-      

            Appellee,        

  v                                                        	 C: 129743
                                                           S
                                                           COA: 253479
  WAYNE COUNTY TREASURER,                                  Wayne CC: 02-234701-CH            

          Defendant/Cross Defendant/               

          Counter Defendant-Appellee,                  

  and

  MICHIGAN FINANCIAL
  INVESTMENTS, L.L.C., 

             Intervening Defendant/Cross 

             Plaintiff/Counter Defendant-  

             Appellant.

  ________________________________________/

         By order of March 27, 2006, the application for leave to appeal the July 5, 2005
  judgment of the Court of Appeals was held in abeyance pending the decision in In re
  Petition by Treasurer of Wayne County for Foreclosure (Docket No. 129341). On order
  of the Court, the case having been decided on May 23, 2007, 478 Mich 1 (2007), the
  application is again considered and, pursuant to MCR 7.302(G)(1), in lieu of granting
  leave to appeal, we REVERSE the judgment of the Court of Appeals and we
  REINSTATE the order of the Wayne County Circuit Court setting aside the foreclosure
  sale and quieting title to the property in the plaintiff. The foreclosure sale of publicly
  owned property is prohibited. MCL 211.78g(1). Contrary to the Court of Appeals
  majority's conclusion, the Wayne County Treasurer had reason to know that the property
  was publicly owned because there is no dispute that the plaintiff Detroit Building
                                                                                                                2

Authority, which was incorporated by the intervening plaintiff City of Detroit, MCL
123.951, was the owner of record and had filed both a deed and an affidavit of property
transfer notifying the county that the property was tax exempt.

       MARKMAN, J., concurs and states as follows:

        I concur in the decision to reverse the Court of Appeals; however, I would do so
on different grounds. It is undisputed that the city of Detroit was the taxpayer of record
in the local assessor’s office at the time of the foreclosure. Because the city's interest was
“identifiable by reference to . . . [t]ax records in the office of the local assessor,” MCL
211.78i(6)(c), the Wayne County Treasurer was required to send notice by certified mail.
MCL 211.78i(2). Moreover, because the city's interest was “reasonably identifiable”
under the records of the local assessor, merely posting a foreclosure notice and publishing
such notice in a newspaper was not constitutionally adequate. Mennonite Bd of Missions
v Adams, 462 US 791, 798-799 (1983). Accordingly, the Court of Appeals erred by
concluding that the treasurer "afforded the City the required due process.”




                          I, Corbin R. Davis, Clerk of the Michigan Supreme Court, certify that the
                    foregoing is a true and complete copy of the order entered at the direction of the Court.
                          September 28, 2007                  _________________________________________
        l0925                                                                 Clerk