Ligon v. City of Detroit

739 N.W.2d 900, 276 Mich. App. 120
CourtMichigan Court of Appeals
DecidedJune 26, 2007
DocketDocket No. 264266
StatusPublished
Cited by80 cases

This text of 739 N.W.2d 900 (Ligon v. City of Detroit) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ligon v. City of Detroit, 739 N.W.2d 900, 276 Mich. App. 120 (Mich. Ct. App. 2007).

Opinion

PER CURIAM.

In this inverse condemnation action,1 defendant city of Detroit (the city) appeals as of right a partial judgment for plaintiff William Ligón. Ligón cross-appeals the same judgment. We affirm in part, [123]*123vacate in part, and remand for entry of an amended judgment in favor of Ligón consistent with this opinion.

i

In 1980, Ligón and his partner, Fonzie Robinson, jointly executed a land contract to purchase from Paul Kales a certain parcel of real property located in the city. Ligón and Robinson each held a one-half interest in the property as cotenants and jointly operated a business in a building situated on the land. Although a deed was not recorded, Ligón claimed that he paid off the land contract in 1988.

In about 1990, Robinson filed for bankruptcy, and the bankruptcy estate acquired Robinson’s one-half interest in the property. In 1991, Ligón entered into a land contract to purchase Robinson’s former one-half interest from the bankruptcy estate. At the end of the land contract term in 1995, the bankruptcy trustee delivered a deed conveying Robinson’s former one-half interest to Ligón. The bankruptcy trustee’s deed was delivered in November 1995 and recorded in February 1996.

In January 1996, the city commenced tax foreclosure proceedings against the property, naming Ligón, Robinson, and other defendants. Detroit v Kales, Wayne Circuit Court Docket No. 96-601825-CH. Ligón argued that he had not personally received notice of the tax foreclosure proceedings. In July 1996, a default judgment was entered in the tax foreclosure proceedings. Then, in August 1996, an “Order Vacating Judgment as to William Ligón Only” was entered in the tax foreclosure proceedings. The city later agreed to voluntarily dismiss Ligón altogether as a party to the tax foreclosure proceedings. In October 1997, as a result of the tax [124]*124foreclosure proceedings, the state of Michigan executed a deed reconveying the property to the city. In 2000, the city took possession of the property and building. The city demolished the building “in error” in 2002. Ligón then commenced this action.

n

A trial court’s decision on a motion for summary disposition is reviewed de novo. Hess v Cannon Twp, 265 Mich App 582, 589; 696 NW2d 742 (2005). Constitutional claims are also reviewed de novo. Id. Specifically, appellate courts review de novo whether a taking of private property is constitutional. City of Novi v Robert Adell Children’s Funded Trust, 473 Mich 242, 248; 701 NW2d 144 (2005). Following a bench trial, we review for clear error the trial court’s factual findings and review de novo its conclusions of law. Glen Lake-Crystal River Watershed Riparians v Glen Lake Ass’n, 264 Mich App 523, 531; 695 NW2d 508 (2004). Finally, we review for an abuse of discretion a trial court’s ruling on a motion to amend a judgment. See McDonald’s Corp v Canton Twp, 177 Mich App 153, 158; 441 NW2d 37 (1989).

m

Both the state and federal constitutions prohibit the taking of private property for public use without just compensation.2 US Const, Am V; Const 1963, art 10, § 2; Adams Outdoor Advertising v East Lansing (.After Remand), 463 Mich 17, 23; 614 NW2d 634 (2000). The “property” protected by the constitutions includes not only title, but all character of vested rights, including [125]*125possession, dominion, control, and the right to make any legitimate use of the premises. Rassner v Fed Collateral Society, Inc, 299 Mich 206, 213-214; 300 NW 45 (1941).

IV

On the parties’ motions for summary disposition, the trial court ruled that at the time the city demolished the building, Ligón had a valid one-half ownership interest in the property. The city argues that this ruling was erroneous. We disagree with the city.

Ligón acquired a valid one-half interest in the property as a purchaser under the land contract with Kales, which was recorded. A land contract may be recorded, and the recording of a land contract “shall have the same force and effect” as the recording of a deed. MCL 565.354. As the city correctly concedes, a land-contract vendee is vested with equitable title, and his or her interest is an interest in the real estate. Darr v First Fed S&L Ass’n of Detroit, 426 Mich 11, 19-20; 393 NW2d 152 (1986); Gilford v Watkins, 342 Mich 632, 637; 70 NW2d 695 (1955). A land-contract vendee accordingly is the equitable owner of the property. Pittsfield Charter Twp v City of Saline, 103 Mich App 99, 104; 302 NW2d 608 (1981). Although no deed from Kales was ever recorded, Ligón never gave up his purchaser’s interest under the land contract and never relinquished his equitable title. Ligón acquired a protected one-half interest in the property by way of the land contract with Kales.

When the city began tax foreclosure proceedings in January 1996, it appears that Ligón did not receive notice. As a general rule, when notice to an affected party has been constitutionally deficient, a resulting tax foreclosure judgment against that party violates his or [126]*126her right to due process. See, generally, In re Petition by Wayne Co Treasurer, 478 Mich 1; 732 NW2d 458 (2007). In such a case, the proper remedy is to vacate the judgment of foreclosure and restore the party’s ownership interest in the property at issue. Id. Of particular note here, a party’s knowledge of a tax delinquency does not equate to notice of a foreclosure proceeding. Detroit v John J Blake Realty Co, 144 Mich App 432, 437; 376 NW2d 114 (1984).

Even if Ligón had received constitutionally adequate notice, after the tax foreclosure proceedings were commenced and a default judgment was entered, the city voluntarily dismissed Ligón as a party to the proceedings and the trial court entered an “Order Vacating Judgment as to William Ligón Only.” Because Ligón was dismissed as a party, the foreclosure proceedings necessarily could not have extinguished or impaired his vested property interest. The general rule is that an individual’s property rights cannot be affected or impaired by a tax foreclosure judgment unless he or she is a party to the proceedings. 72 Am Jur 2d, State & Local Taxation, § 805, pp 221-222; 85 CJS, Taxation, § 1278, p 389. Similarly, because the judgment of foreclosure was vacated “as to William Ligón,” it could no longer bind Ligón. A judgment of foreclosure “binds those only who are parties to it. . . .” West Michigan Park Ass’n v Pere Marquette R Co, 172 Mich 179, 187; 137 NW 799 (1912).

Ligón had a protected one-half interest in the property at issue. This property interest was not extinguished by the tax foreclosure proceedings, for which Ligón received deficient notice and from which Ligón was dismissed as a party. The trial court did not err in holding that Ligón had a valid one-half interest in the property at the time the city demolished the building.

[127]*127However, our conclusion in this regard does not answer the question whether the tax foreclosure proceedings affected or impaired the other one-half interest in the property, acquired by Ligón from the bankruptcy trustee in November 1995. Specifically, Ligón argues on cross-appeal that the trial court erred in ruling that the bankruptcy trustee’s conveyance to him of Robinson’s former one-half interest was invalid. We agree with Ligón.

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Cite This Page — Counsel Stack

Bluebook (online)
739 N.W.2d 900, 276 Mich. App. 120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ligon-v-city-of-detroit-michctapp-2007.