United States District Court, E.D. Michigan, Northern Division
Magistrate Patricia T. Morris
ORDER STAYING CASE
L. LUDINGTON UNITED STATES DISTRICT JUDGE
Arkona, LLC (“Arkona”) and Dianne Kasbob have
filed a complaint against Defendants Cheboygan County, Buffy
Jo Weldon, Linda A. Cronan, Monroe County, and Kay Sisung.
Arkona claims that it owned real property in Cheboygan County
with a fair market value of at least $505, 000. ECF No. 8 at
PageID.57. Arkona had a tax delinquency of approximately $39,
750. Cronan, as Cheboygan County Treasurer, subsequently sold
the property for $307, 000. ECF No. 8 at PageID.56; ECF No.
8-2 at PageID.79. Arkona claims that Cronan and Cheboygan
County took or destroyed $465, 250 of the property's
equity. ECF no. 8 at PageID.57.
Kosbab claims that she owned real property in Monroe County
with a fair market value of at least $22, 000. ECF No. 8 at
PageID.59. The property had a tax delinquency of
approximately $2, 500. Id. at PageID.59. Sisung, as
the Monroe County Treasurer, subsequently sold the property
for $28, 250. Kosbab claims that Sisung and Monroe County
took or destroyed $25, 750 of the property's equity.
October 7, 2019, Defendants filed a motion to dismiss
Plaintiffs' complaint. ECF No. 11. The next month,
Plaintiff filed a motion for class certification. ECF No. 19.
The parties were then ordered to show cause why the case
should not be stayed pending the Sixth Circuit's
resolution of the case Freed v. Thomas, No. 18-2312
(6th Cir.). For the following reasons, the case will be
stayed pending the Sixth Circuit's resolution of
argue that Defendants are seizing property and maintaining
the equity pursuant to Michigan's General Property Tax
Act (“GPTA”), MCL. §211.78m(8) which
(8) A foreclosing governmental unit shall deposit the
proceeds from the sale of property under this section into a
restricted account designated as the “delinquent tax
property sales proceeds for the year ___”. The
foreclosing governmental unit shall direct the investment of
the account. The foreclosing governmental unit shall credit
to the account interest and earnings from account
investments. Proceeds in that account shall only be used by
the foreclosing governmental unit for the following purposes
in the following order of priority:
(a) The delinquent tax revolving fund shall be reimbursed for
all taxes, interest, and fees on all of the property, whether
or not all of the property was sold.
(b) All costs of the sale of property for the year shall be
MCL §211.78m(8); see also ECF No. 8 at
Defendants COUNTY OF CHEBOYGAN and COUNTY OF MONROE and their
respective treasurers are and have been acting to voluntarily
enforce an unconstitutional statute which each has willingly
assumed to undertake pursuant to ...