Donald Freed v. Michelle Thomas

CourtCourt of Appeals for the Sixth Circuit
DecidedMay 12, 2025
Docket24-1251
StatusPublished

This text of Donald Freed v. Michelle Thomas (Donald Freed v. Michelle Thomas) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donald Freed v. Michelle Thomas, (6th Cir. 2025).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 25a0124p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ DONALD FREED, │ Plaintiff-Appellant/Cross-Appellee (24-1170/1197), │ Plaintiff-Appellant/Cross-Appellee (24-1170/1251), │ │ > Nos. 24-1170/1197/1251 v. │ │ MICHELLE THOMAS, │ │ Defendant, │ │ GRATIOT COUNTY, MICHIGAN, │ Defendant-Appellee/Cross-Appellant (24-1170/1197), │ │ │ MICHIGAN DEPARTMENT OF ATTORNEY GENERAL, │ Intervenor-Appellee/Cross-Appellant (24-1170/1251). │ ┘

Appeal from the United States District Court for the Eastern District of Michigan at Bay City. No. 1:17-cv-13519—Bernard A. Friedman, District Judge.

Argued: March 18, 2025

Decided and Filed: May 12, 2025

Before: BATCHELDER, LARSEN, and RITZ, Circuit Judges.

_________________

COUNSEL

ARGUED: Philip Lee Ellison, OUTSIDE LEGAL COUNSEL PLC, Hemlock, Michigan, for Donald Freed. Douglas J. Curlew, CUMMINGS, MCCLOREY, DAVIS & ACHO, P.L.C., Livonia, Michigan, for Gratiot County. Matthew B. Hodges, OFFICE OF THE MICHIGAN ATTORNEY GENERAL, Lansing, Michigan, for Michigan Department of Attorney General. ON BRIEF: Philip Lee Ellison, OUTSIDE LEGAL COUNSEL PLC, Hemlock, Michigan, for Donald Freed. Douglas J. Curlew, CUMMINGS, MCCLOREY, DAVIS & ACHO, P.L.C., Nos. 24-1170/1197/1251 Freed v. Thomas, et al. Page 2

Livonia, Michigan, for Gratiot County. Matthew B. Hodges, OFFICE OF THE MICHIGAN ATTORNEY GENERAL, Lansing, Michigan, for Michigan Department of Attorney General.

OPINION _________________

RITZ, Circuit Judge. Donald Freed, Gratiot County, and the state of Michigan appeal the district court’s order awarding Freed attorneys’ fees. We affirm the court’s determination that Gratiot County and Michigan are liable for attorneys’ fees. But for the following reasons, we vacate the court’s fee calculation and remand for further proceedings.

I.

This case is almost seven years old, and Freed’s current appeal is his third before this court.

A.

In 2017, Gratiot County foreclosed on Donald Freed’s home because he did not pay his taxes. Freed’s property was worth $98,800. At the time of foreclosure, Michigan’s General Property Tax Act (GPTA) did not require that “foreclosing governmental unit[s]” return the surplus proceeds from a foreclosure sale to the property owner. Rafaeli, LLC v. Oakland Cnty., 952 N.W.2d 434, 446 (Mich. 2020). So even though Freed owed just under $1,110, the county sold his property for $42,000 and kept everything.

Freed sued Gratiot County and its treasurer Michelle Thomas under 42 U.S.C. § 1983. He alleged that the county took his property without just compensation in violation of the Fifth and Fourteenth Amendments.

Because Freed’s claim implicated the GTPA’s constitutionality, Michigan intervened under 28 U.S.C. § 2403(b). That federal law entitles states to join “any action . . . wherein the constitutionality of any statute of that State affecting the public interest is drawn in question.” 28 U.S.C. § 2403(b). It also makes intervening states “subject to all liabilities of a party as to court costs.” Id. Nos. 24-1170/1197/1251 Freed v. Thomas, et al. Page 3

The district court dismissed Freed’s complaint for lack of subject matter jurisdiction, citing our decision in Wayside Church v. Van Buren County, 847 F.3d 812, 822-23 (6th Cir. 2017). Freed v. Thomas, No. 17-cv-13519, 2018 WL 5831013, at *2-3 (E.D. Mich. Nov. 7, 2018). Freed appealed and we reversed the dismissal. Freed v. Thomas (Freed I), 976 F.3d 729, 732 (6th Cir. 2020). Recognizing that the Supreme Court’s ruling in Knick v. Township of Scott, 588 U.S. 180 (2019), partially abrogated Wayside Church, we held that Freed’s claim was no longer jurisdictionally barred. Freed I, 976 F.3d at 734-41.

While Freed’s first appeal was ongoing, the Michigan Supreme Court decided Rafaeli, LLC v. Oakland County, 952 N.W.2d 434 (Mich. 2020). Rafaeli held that the Michigan Constitution gives former owners of foreclosed property a right to the surplus proceeds from the sale of that property. Id. at 466.

B.

On remand, the county defendants and the Michigan Attorney General conceded that, post-Rafaeli, Michigan law required the government to return surplus proceeds from a foreclosure sale to the property’s former owner. Thus, the parties agreed that Freed experienced a taking.

But the parties disagreed about the value of Freed’s taken property. The state and county argued that Freed could only recover the proceeds from the foreclosure sale that exceeded the amount to which the proceeds exceeded his debt. Freed, on the other hand, claimed that Gratiot County took his “equity” and owed him the entire fair market value of his home (minus liens) at the time of the foreclosure sale—almost $98,000. The county defendants also argued that neither Thomas nor the county could be held liable under various immunity doctrines.

The district court granted partial summary judgment to Freed on his takings claim. Freed v. Thomas, No. 17-cv-13519, 2021 WL 942077, at *2-4 (E.D. Mich. Feb. 26, 2021). We affirmed. Freed v. Thomas (Freed II), 81 F.4th 655, 657 (6th Cir. 2023). Citing Rafaeli, we concluded that the Fifth and Fourteenth Amendments required Gratiot County to pay Freed the difference between the foreclosure sale and his debt. Id. at 658-59. But we rejected Freed’s Nos. 24-1170/1197/1251 Freed v. Thomas, et al. Page 4

equity theory. Id. We also determined that the county was not immune from judgment but dismissed the claims against Thomas as barred by qualified immunity. Id. at 660, 661.

C.

Back in district court, Freed moved for attorneys’ fees. Freed claimed that his attorney worked 366 hours on the case. For 274.5 of those hours, the attorney charged a rate of $525 per hour. The attorney’s hourly rate was $595 for the remaining 91.5 hours, which were spent working on the Freed II appeal. To support his requested fee, Freed submitted a log of his attorney’s work and Michigan Bar documents showing the average rates charged by attorneys in various areas within the state

The county opposed Freed’s motion. So did the state of Michigan, which argued that it could not be made liable for attorneys’ fees.

The district court awarded fees to Freed, though it reduced by 35% both Freed’s claimed hours and rates. To explain the reductions, the court cited evidence that Freed’s attorney overbilled for some services, as well as the benefit that Freed received from the Knick and Rafaeli decisions. The court also referenced, but did not apply, the Johnson factors, which we have stated courts may use to adjust fee awards. See Reed v. Rhodes, 179 F.3d 453, 471 & n.3 (6th Cir. 1999) (citing Johnson v. Ga. Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974)).

The district court then ordered Gratiot County to pay 95% of Freed’s fees and the state of Michigan to pay the remaining 5%. The court based that apportionment on its assessment that Michigan’s intervention did not inordinately increase Freed’s attorney’s workload. All three parties appealed.

While the appeal was pending, Freed initiated post-judgment proceedings. We asked the parties to clarify whether those proceedings deprived us of jurisdiction. See JPMorgan Chase Bank, N.A. v. Winget, 920 F.3d 1103, 1106 (6th Cir. 2019). The parties assured us that the proceedings had concluded, and the district court record confirms as much.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hutto v. Finney
437 U.S. 678 (Supreme Court, 1979)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Tennessee v. Garner
471 U.S. 1 (Supreme Court, 1985)
Webb v. County Board of Education
471 U.S. 234 (Supreme Court, 1985)
City of Riverside v. Rivera
477 U.S. 561 (Supreme Court, 1986)
Will v. Michigan Department of State Police
491 U.S. 58 (Supreme Court, 1989)
Arizonans for Official English v. Arizona
520 U.S. 43 (Supreme Court, 1997)
Fox v. Vice
131 S. Ct. 2205 (Supreme Court, 2011)
Binta B. Ex Rel. S.A. v. Gordon
710 F.3d 608 (Sixth Circuit, 2013)
Mallory v. Harkness
923 F. Supp. 1546 (S.D. Florida, 1996)
Harbor Watch Condominium Association v. Emmet County Treasurer
863 N.W.2d 745 (Michigan Court of Appeals, 2014)
Shannon Van Horn v. Nationwide Property and Casualty
436 F. App'x 496 (Sixth Circuit, 2011)
Cheryl Minor v. Comm'r of Social Security
826 F.3d 878 (Sixth Circuit, 2016)
Wayside Church v. Van Buren County
847 F.3d 812 (Sixth Circuit, 2017)
Murphy v. Smith
583 U.S. 220 (Supreme Court, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Donald Freed v. Michelle Thomas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donald-freed-v-michelle-thomas-ca6-2025.