e-Journal Summary

e-Journal Number : 82916
Opinion Date : 12/23/2024
e-Journal Date : 01/16/2025
Court : Michigan Court of Appeals
Case Name : In re Petition of State Treasurer for Foreclosure
Practice Area(s) : Litigation Tax
Judge(s) : Per Curiam – Borrello, Maldonado, and Wallace
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Issues:

Surplus proceeds resulting from a tax sale; MCL 211.78t; Dismissal without prejudice pursuant to MCR 2.116(C)(6); Certification of a class in Hathon v State of MI

Summary

The court held that given the Michigan Supreme Court’s decision in Hathon, the trial court erred in granting petitioner-State Treasurer’s summary disposition motion under MCR 2.116(C)(6) in this case concerning tax sale surplus proceeds. Petitioner did not dispute that MCL 211.78t entitled claimant to the surplus proceeds at issue but asserted “that claimant, who never filed a claim in Hathon, was nevertheless a putative class member of Hathon and had not opted out of the class action.” Petitioner argued that as a result, claimant could not maintain this “action while being a putative class member of the action in Hathon at the same time, meaning the trial court’s dismissal without prejudice of the present action was proper pursuant to MCR 2.116(C)(6).” However, the court concluded that because the Michigan Supreme Court vacated its “order affirming recertification of the class in Hathon and remanded that case to the Court of Claims to reconsider the plaintiff’s motion for recertification of class, the basis for the trial court’s order for summary disposition in the present case no longer exists, i.e., plaintiff is no longer a putative member of a class certified in a class action.” Reversed and remanded.

Full PDF Opinion