Rahjinah Johnson

CourtUnited States Bankruptcy Court, E.D. Michigan
DecidedJuly 11, 2025
Docket24-51360
StatusUnknown

This text of Rahjinah Johnson (Rahjinah Johnson) is published on Counsel Stack Legal Research, covering United States Bankruptcy 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
Rahjinah Johnson, (Mich. 2025).

Opinion

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

IN RE: Chapter 13 Rahjinah Johnson, Case No. 24-51360 Hon. Lisa S. Gretchko Debtor. ________________________/

OPINION REGARDING MR. WASHINGTON’S OBJECTION TO PROPOSED ORDER IMPOSING SANCTIONS PURSUANT TO 28 USC § 1927

Introduction

It is unusual for this Court to issue a written opinion regarding an objection to a proposed order. However, the issues presented in this case are virtually identical to the issues presented in Leonard Johnson’s bankruptcy case (Case No. 24-51353). On June 10, 2025, Mr. Washington filed an appeal of the Order Confirming Chapter 13 Plan in Leonard Johnson’s bankruptcy case. That appeal has been designated as Case No. 2:25- cv-11756 and assigned to U.S. District Judge Susan K. DeClercq. The original, amended, and second amended Designations of Items to be Included in Record on Appeal (filed at ECF Nos. 106, 118, and 121 in Leonard Johnson’s bankruptcy case) include, inter alia, transcripts of bankruptcy court hearings held in both Leonard Johnson’s bankruptcy case and Rahjinah Johnson’s bankruptcy case on April 10, 2025 (relating to a claim objection) and June 5, 2025 (relating to a motion for sanctions), and this Court’s oral bench opinions delivered at those hearings.

Additionally, during the June 26, 2025 hearing regarding Mr. Washington’s objection to entry of the proposed order memorializing the Court’s imposition of sanctions against him, counsel for the party in whose favor the sanctions were awarded (River Park Place Condominium Association) stated that his client might cross-appeal, seeking sanctions in excess of the amount that this Court awarded.

After the June 26, 2025 hearing, the parties were given a brief time to explore the prospect of mediation. This Court scheduled a telephonic status conference for July 1, 2025, to further discuss the possibility of mediation. During the July 1, 2025 status conference, Mr. Washington stated that he did not wish to participate in mediation, and counsel for River Park Place Condominium Association made an oral motion for costs (under E.D. Mich. LBR 9021-1(b)), claiming that Mr. Washington unreasonably withheld his consent to entry of an order awarding sanctions. This Court denied that oral motion, for the reasons stated on the record at the July 1, 2025 status conference.

Against the foregoing procedural backdrop, this Court writes this opinion to assist the District Court in its work on any potential appeal(s) in this case and to satisfy Mr. Washington’s request1 for specific findings.

Jurisdiction

This Court has subject matter jurisdiction under 28 U.S.C. §§ 1334(b), 157(a) and 157(b)(1), and E.D. Mich. L.R. 83.50(a). The matters described in this opinion are core proceedings under 28 U.S.C. § 157(b)(2)(A), (B), and (O).

Facts A. State Court Litigation and the State Court Judgment After years of state court litigation (“State Court Litigation”) between River Park Place Condominium Association (“Association”) as Plaintiff and Leonard Johnson and Rahjinah Johnson as Defendants, the parties appeared for a bench trial on April 8, 2024, and advised the Wayne County Circuit Court (Judge Ewell) that they had reached a settlement. The settlement was placed on the record in the Wayne County Circuit Court on April 8, 2024. A copy of the transcript (“Transcript”) of that April 8, 2024 settlement on the record was filed with this Court at ECF No. 47-3. The Transcript reflects that Mr. Washington (as counsel for Leonard Johnson and Rahjinah Johnson in the State Court Litigation) placed the terms of the settlement on the record as follows: MR. WASHINGTON: Judge, we have agreed that the parties will agree to a judgment in, in the amount of $200,000 and that the judgment can be entered today…. The Transcript further reflects that Leonard Johnson and Rahjinah Johnson were both present when the terms of the settlement were placed on the record, and each of them

1 This request was contained in Mr. Washington’s objection (ECF No. 75) to entry of the order imposing sanctions against him. agreed to those terms. The Transcript also demonstrates that the Association’s counsel (Mr. Neuman) asked: MR. NEUMAN: And just one, one question for each of you. You understand that a judgment will be entered today in the amount of $200,000. Leonard Johnson and Rahjinah Johnson each answered “yes” in response to Mr. Neuman’s question. On April 9, 2024, the Wayne County Circuit Court (Judge Ewell) entered a Judgment (“State Court Judgment”) “against Rahjinah Johnson and Leonard Johnson in the amount of $200,000, which is inclusive of damages, interest and costs through April 8, 2024.” A copy of the State Court Judgment is attached to the Association’s proof of claim (“Claim”) in this Chapter 13 case. The State Court Judgment recites that it will earn interest at the statutory rate (Claim, p. 5). On or about April 29, 2024, Leonard Johnson and Rahjinah Johnson filed a Motion for Reconsideration/Clarification of the State Court Judgment (“State Court Motion for Reconsideration/Clarification”). A copy of the State Court Motion for Reconsideration/Clarification was not filed with this Bankruptcy Court but is referenced at ECF No. 47-5, p. 2. On or about May 13, 2024, Leonard Johnson and Rahjinah Johnson filed a Motion to Compel Plaintiffs to Enter a Satisfaction of Judgment Based on the Bylaws Indemnification Article I, §6 and Pursuant to MCL 450.2564 c, et seq and MCR 2.620(3) (“State Court Motion to Compel the Entry of a Satisfaction of Judgment”). A copy of the State Court Motion to Compel the Entry of a Satisfaction of Judgment was not filed with this Bankruptcy Court but is referenced at ECF No. 47-5, p. 8. On September 30, 2024, the Wayne County Circuit Court (Judge Ewell) entered an Opinion and Order denying both the State Court Motion for Reconsideration/Clarification and the State Court Motion to Compel the Entry of a Satisfaction of Judgment. A copy of Judge Ewell’s September 30, 2024 Opinion and Order was filed with this Bankruptcy Court at ECF No. 47-5. Specifically, Judge Ewell found that: (1) The Transcript reflects that counsel for the Association specifically asked Rahjinah Johnson and Leonard Johnson if they understood that a judgment for $200,000.00 would be entered against them and they each said “yes” (ECF No. 47-5, p. 6-7). (2) The State Court Judgment accurately reflects the settlement Rahjinah Johnson agreed to at the April 8 2024, hearing (ECF No. 47-5, p. 7). (3) The State Court Judgment was entered in compliance with Michigan law (ECF No. 47-5, p. 7-8). (4) “[S]ince the only settlement terms on the record were that a Judgment would be entered for $200,000.00 against Leonard Johnson and a Judgment would be entered for $200,000.00 against Rahjinah Johnson, without reservation of any of Defendants’ alleged rights to seek indemnity under the Plaintiff’s Bylaws or otherwise, and since the Defendants have not provided the Court with the documentation evidencing their payment of the Judgment, the Defendants’ Motion to Compel Plaintiff’s Entry of a Satisfaction of Judgment is unwarranted” (ECF No. 47-5, p. 9). B. Post-Judgment Skirmishes and the Association’s Judgment Lien Post-judgment skirmishes continued in the Michigan state courts. On November 20, 2024, the Association recorded a Notice of Judgment Lien against Leonard Johnson with the Wayne County Register of Deeds. A copy of this Notice of Judgment Lien is attached to the Claim. C.

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