Donald Freed v. Michelle Thomas, et al.

CourtDistrict Court, E.D. Michigan
DecidedMarch 20, 2026
Docket1:17-cv-13519
StatusUnknown

This text of Donald Freed v. Michelle Thomas, et al. (Donald Freed v. Michelle Thomas, et al.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan 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, et al., (E.D. Mich. 2026).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION DONALD FREED,

Plaintiff, Case No. 17-cv-13519 v. Hon. Matthew F. Leitman

MICHELLE THOMAS, et al.,

Defendants. __________________________________________________________________/ ORDER (1) SUSTAINING IN PART AND OVERRULING IN PART THE OBJECTIONS TO THE REPORT AND RECOMMENDATION (ECF Nos. 173, 174); (2) ADOPTING IN PART THE RECOMMENDED DISPOSITION OF THE REPORT AND RECOMMENDATION (ECF No. 172); (3) GRANTING IN PART AND DENYING IN PART PLAINTIFF’S RENEWED MOTION FOR ATTORNEY’S FEES (ECF No. 162); AND (4) TERMINATING AS MOOT PLAINTIFF’S MOTION TO EXPEDITE (ECF No. 169) AND PLAINTIFF’S MOTION FOR RULING ON PENDING OBJECTIONS (ECF No. 178) In this action, Plaintiff Donald Freed brought claims against Gratiot County alleging, among other things, that the County took his property without just compensation in violation of the Fifth, Eighth, and Fourteenth Amendments when it foreclosed on his residence (for non-payment of taxes), sold the residence, and retained the full amount paid to them for the residence.1 Roughly one year after

1 Freed originally named Gratiot County Treasurer Michelle Thomas as an additional defendant. She did not participate in the fee dispute now before the Court because the then-presiding judge dismissed the claims against her in her individual and Freed filed suit, the State of Michigan, through the Michigan Attorney General, intervened in this action to defend the constitutionality of certain Michigan statutory

provisions governing the foreclosure process that Freed had challenged. The district judge who was then presiding over this action entered judgment in Freed’s favor (after an initial appeal) and later awarded Freed $81,183.37 in

attorney’s fees – an amount that was 35% less than Freed had requested – plus costs. The then-presiding judge ordered the County to pay 95% of that amount and ordered the State to pay 5%. All parties appealed the fee award. Freed challenged the fee reduction as excessive; the State and the County (collectively, the “Fee Opponents”)

argued that the reduction should have been even greater; and the State challenged the allocation of payment responsibility. The Sixth Circuit vacated the fee award in its entirety and remanded for further proceedings.2

Now before the Court is Freed’s renewed motion for attorney’s fees. (See Mot., ECF No. 162.) The Court referred the motion to the assigned Magistrate Judge. On December 10, 2025, she issued a report and recommendation (the “R&R”) in which she recommended that the Court (1) award Freed almost all of the

fees he sought (making only a slight reduction to the hourly rate for one of his

official capacities. (See Opinion and Order Granting in Part and Denying in Part Plaintiff’s Motion for Summary Judgment, ECF No. 100, PageID.1721-1722.) 2 While the parties’ appeals were pending in the Sixth Circuit, the case was re- assigned to the undersigned. (See Text Order, 07/02/2024.) attorneys during some phases of the litigation) and (2) split the responsibility for paying the fee award 50-50 between the Fee Opponents. (See R&R, ECF No. 172.)

The Fee Opponents have now filed separate sets of objections to the R&R. (See Objs., ECF Nos. 173, 174.) Freed has not filed any objections. For the reasons explained below, the Fee Opponents’ objections are SUSTAINED IN PART and

OVERRULED IN PART. And Freed’s fee motion is GRANTED IN PART and DENIED IN PART as set forth below. I A

This case has a long and complicated procedural history. It has spanned over eight years and spawned three published Sixth Circuit decisions on appeal. In its most recent decision, the Sixth Circuit succinctly set forth the aspects of the case’s

history that are relevant to the parties’ fee dispute. For the sake of efficiency, the Court reproduces that account here: 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., 505 Mich. 429, 952 N.W.2d 434, 446 (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.

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, 139 S.Ct. 2162, 204 L.Ed.2d 558 (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, 505 Mich. 429, 952 N.W.2d 434 (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 equity theory. Id.

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Bluebook (online)
Donald Freed v. Michelle Thomas, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/donald-freed-v-michelle-thomas-et-al-mied-2026.