United States District Court, E.D. Michigan, Southern Division
Magistrate Judge Stephanie Dawkins Davis
ORDER GRANTING DEFENDANTS' MOTION TO DISMISS
J. Tarnow, Senior United States District Judge
October 26, 2017, Plaintiff Charles Hunter filed this action
to quiet title pursuant to 28 U.S.C. § 2410(a)(1).
Defendants, the Government and Sterling Mortgage and
Investment Co. (“Sterling”), filed the instant
Motion to Dismiss  for lack of subject matter jurisdiction
on December 7, 2017. Plaintiff filed a Response  on
December 26, 2017. Defendants filed a Reply  on January
9, 2018. On April 10, 2018, the Court held a hearing on the
Plaintiff no longer has a cognizable legal interest in the
subject property, he lacks standing to bring this action
under § 2410(a)(1). Without a waiver of the
Government's sovereign immunity, the Court does not have
subject matter jurisdiction over this case. For the reasons
explained below, the Court GRANTS
Defendants' Motion to Dismiss .
September 30, 1999, Plaintiff received a warranty deed for a
residential property located at 1152 Lakeside Drive in
Birmingham, Michigan (“Lakeside Property”). On
October 21, 2004, Plaintiff executed a mortgage with Wells
Fargo on the Lakeside Property.
2006 to 2011, Plaintiff failed to pay his federal taxes. In
2013 and 2015, the Internal Revenue Service
(“IRS”) recorded multiple liens on the Lakeside
Property for Plaintiff's unpaid federal taxes.
also defaulted on his mortgage. On April 11, 2017, Wells
Fargo executed a non-judicial foreclosure sale on the
Lakeside Property. Wells Fargo attempted to notify the IRS
via certified mail of the sale on March 16, 2017, but
inadvertently sent the notification to the wrong address.
foreclosure sale, Defendant Sterling purchased the Lakeside
Property for $420, 235.82. However, because the IRS did not
receive proper notice of the sale, the liens arising from
Plaintiff's tax liabilities remained on the Lakeside
Property after the sale to Defendant Sterling.
12, 2017, the Government brought an action in this Court
against Sterling and Mr. Hunter to enforce its tax liens on
the Lakeside Property. United States v. Sterling Mortgage
& Investment Co., et al., No. 2:17-cv-12281 (E.D.
Mich. 2017) (“Sterling case”). At the time the
Government filed the Sterling case, Mr. Hunter's
statutory right to redeem the Lakeside Property had not yet
September 18, 2017, the Government and Sterling settled the
Sterling case. According to the settlement agreement,
Sterling agreed to “sell the Lakeside Property and
provide the Government with 50-percent of the ‘net
profits' from the sale.” [Dkt. #8 at 7]. The
Government agreed to “apply those funds to Mr.
Hunter's unpaid federal tax debts.” Id.
Mr. Hunter was not part of settlement negotiations or the
October 11, 2017, Plaintiff's redemption period on the
Lakeside Property expired.
October 26, 2017, Plaintiff filed this action pursuant to
§ 2410(a)(1). He asks the Court to enter a declaratory
judgment requiring the Government to enforce its federal tax
liens on the Lakeside Property over any interest of Defendant