Disbursement of remaining tax-foreclosure proceeds under MCL 211.78t; Rafaeli, LLC v Oakland Cnty; Notice; MCL 211.78t(2); Comparing In re Petition of Muskegon Cnty Treasurer for Foreclosure; The harsh-and-unreasonable consequences exception; Substantial compliance; Constitutionality of MCL 211.78t; Unjust enrichment; Jurisdiction; Standing; “Aggrieved party”; Distinguishing Federated Ins Co v Oakland Cnty Rd Comm’n

The court held that the trial court erred as to its interpretation and application of MCL 211.78t when it granted claimants’ motions for disbursement of remaining tax-foreclosure proceeds. It also held that none of claimant-Schwerin’s alternative arguments were valid. Petitioner-State Treasurer foreclosed on real property in which claimants had an interest. The trial court granted claimants’ separate motions for disbursement of remaining proceeds. As a preliminary matter on appeal, the court found that claimants “failed to raise a meritorious jurisdictional challenge.” Next, it agreed with petitioner that the trial court erred by granting claimants’ motions because they failed to comply with the requirements of MCL 211.78t. It noted the effective date of the foreclosure here was 3/31/21. “Similar to the respondents in Muskegon Treasurer, claimants failed to provide timely notice of their intention to claim the remaining proceeds, as is required pursuant to MCL 211.78t(2).” As such, similar to “the respondents in Muskegon Treasurer, [they] forfeited their rights to obtain remaining proceeds.” Finally, the court rejected Schwerin’s alternative arguments for affirmance of the trial court’s order, finding (1) application of the harsh-and-unreasonable consequences exception was not warranted, (2) “neither logic nor caselaw supports Schwerin’s contention that noncompliance with § 78t(2)’s notice requirements may be deemed substantial compliance[,]” (3) his constitutional challenges were meritless, and (4) “an equitable remedy such as the imposition of a constructive trust would contravene the Legislature’s clearly stated intent and essentially nullify MCL 211.78t.” Reversed and remanded.