Duran v. Wayne, County of

CourtDistrict Court, E.D. Michigan
DecidedMarch 24, 2025
Docket2:24-cv-10988
StatusUnknown

This text of Duran v. Wayne, County of (Duran v. Wayne, County of) 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
Duran v. Wayne, County of, (E.D. Mich. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

PUBLIC GUARDIAN AND TRUSTEE OF GASTON C. DURAN PROVINCE OF ONTARIO, Case No. 24-cv-10988

Plaintiff, Honorable Robert J. White

v.

WAYNE COUNTY,

Defendant.

ORDER GRANTING IN PART DEFENDANT’S MOTION TO DISMISS

This case involves Plaintiff Public Guardian and Trustee of Gaston C. Duran Province of Ontario’s and purported class members’ claims against Defendant Wayne County (the County) arising out of the County’s process for property foreclosure.1 (ECF No. 1). Before the Court is Defendant’s motion to dismiss the complaint pursuant to Fed. R. Civ. P. 12(b)(6) (failure to state a claim). (ECF No. 13). The Parties fully briefed the motion and the Court held oral argument. For the

1 According to the complaint, Plaintiff was appointed in February 2016 as guardian of the property at issue here, which was owned by Gaston C. Duran and is located in Wayne County. (ECF No. 1, PageID.6). following reasons, the Court partially grants the motion. Specifically, the Court dismisses all Plaintiff’s claims, but the state claims are dismissed without prejudice.

I. Background Plaintiff filed a class-action complaint on April 15, 2024, on behalf of “himself”2 and all similarly situated plaintiffs. (ECF No. 1, PageID.2). The complaint alleges that the County’s process of foreclosing on property under

Michigan’s General Property Tax Act (the GPTA), Mich. Comp. Laws § 211.1 et seq., is constitutionally defective and deprived Plaintiff and similarly situated parties of “just compensation” for their properties. (ECF No. 1, PageID.7-12). Specific to

the Duran property at issue, Plaintiffs allege that the County recorded a judgment of foreclosure for this property on August 9, 2017 (with a notice of judgment of foreclosure dated March 29, 2017), because Duran owed approximately $2,831.80 in delinquent taxes and related expenses. (ECF No. 1, PageID.13-14). Plaintiffs

allege further that, following the foreclosure, the County conveyed the property to the City of Dearborn for $2,831.80 (the amount of debt owed); Dearborn later sold the property for $50,000. (ECF No. 1, PageID.14). Plaintiff asserts that the County

2 It is unclear whether this refers to Plaintiff, the apparent guardian of the property at issue, or Duran, the property’s owner. For the purpose of this motion, the Court assumes that Plaintiff is asserting claims either as a derivative owner of the subject property, or else on behalf of Duran. illegally “took Plaintiff’s equity and/or surplus in the Property” and “has refused to return any of the equity to Plaintiff.” (ECF No. 1, PageID.14-15).

Plaintiff asserts claims of (1) an unconstitutional taking under the Fifth and Fourteenth Amendments, “and/or via” 42 U.S.C. § 1983 and § 1988 (Count I); (2) an unconstitutional inverse condemnation or taking under Michigan law (Count II);

(3) a due process violation under 42 U.S.C. § 1983 and § 1988 (Count III); (4) unjust enrichment (Count IV); and (5) a violation of the Eighth Amendment (Count V). (ECF No. 1, PageID.19-26). Plaintiff also requests declaratory relief (Count VI). (ECF No. 1, PageID.26-27). Concerning the class claims, Plaintiff brings the action

on behalf of the owners of real property in Wayne County during the relevant statutorily-limited time period, who were subject to the unconstitutional process which resulted in the taking and/or unconstitutional forfeiture of their equity, but excluding those who have separately filed their own personal post-forfeiture legal actions in state or federal courts.

(ECF No. 1, PageID.15). The County now moves to dismiss under Fed. R. Civ. P. 12(6), arguing that (1) Plaintiffs’ Counts I, III, and IV are untimely; (2) Counts II through IV fail as a matter of law; and (3) Plaintiffs’ failure to state a claim concerning the Duran property requires dismissal of the related class claims. (ECF No. 13, PageID.117, 123-130). I. Legal Standard To survive a Rule 12(b)(6) motion to dismiss, “a complaint must contain

sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference

that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). The plausibility standard “does not impose a probability requirement at the pleading stage; it simply calls for enough fact to raise a reasonable expectation

that discovery will reveal evidence of illegal [conduct].” Twombly, 550 U.S. at 556. Put another way, the complaint’s allegations “must do more than create speculation or suspicion of a legally cognizable cause of action; they must show entitlement to relief.” League of United Latin Am. Citizens v. Bredesen, 500 F.3d 523, 527 (6th Cir.

2007) (emphasis in original) (citing Twombly, 550 U.S. at 555-56). Although “it is usually not appropriate to dismiss a claim under Rule 12(b)(6) based upon the statute of limitations,” the Court may do so when “the allegations in a complaint

affirmatively show that a claim is time-barred.” Singh v. Proctor & Gamble Co., No. 23-3414, 2024 LEXIS 1672 (6th Cir January 24, 2024). Relatedly, “[w]hen a court is presented with a Rule 12(b)(6) motion, it may consider the Complaint and any exhibits attached thereto, public records, items appearing in the record of the case and exhibits attached to defendant’s motion so long as they are referred to in the Complaint and are central to the claims contained

therein.” Bassett v. Nat’l Collegiate Ath. Ass’n, 528 F.3d 426, 430 (6th Cir. 2008). Both parties attached various exhibits to their briefing on the instant motion, all of which are appropriate for consideration under Rule 12(b)(6).

II. Analysis A. Legal Backdrop On July 15, 2020, the Michigan Supreme Court in Rafaeli, LLC v. Oakland Cnty., 505 Mich. 429 (2020), held that municipalities’ retention of a property owner’s

surplus proceeds (i.e., sale proceeds in excess of debt owed) following foreclosure constituted “an unconstitutional taking without just compensation” under the state’s constitution. Id. at 437. Rafaeli concluded that property owners have a vested property right under the state’s common law, protected by Michigan’s Takings

Clause, “to collect the surplus proceeds that are realized from the tax-foreclosure sale of property.” Id. at 470-72. At the time, the GPTA did not provide any mechanism to return excess proceeds from foreclosure to a property owner; instead,

surplus proceeds were “used to subsidize the costs for all foreclosure proceedings and sales,” with any remainder transferred to the county’s general fund. Id. at 446- 48 (emphasis in original).

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