Taylor v. Jackson

CourtDistrict Court, E.D. Michigan
DecidedJanuary 6, 2025
Docket4:19-cv-12548
StatusUnknown

This text of Taylor v. Jackson (Taylor v. Jackson) 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
Taylor v. Jackson, (E.D. Mich. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION KENNETH TAYLOR, Plaintiff, Case Number 19-12548 Honorable David M. Lawson COUNTY OF OAKLAND, Defendant. ee OPINION AND ORDER GRANTING MOTION FOR ATTORNEY’S FEES Defendant Oakland County foreclosed on plaintiff Kenneth Taylor’s home because he failed to pay his property taxes. Taylor filed this lawsuit as a putative class action alleging that the property was worth more than the amount of the delinquent taxes, and he sought to recover the excess value. Class certification was denied, and Taylor settled his individual claims against the County. Part of the settlement allowed the plaintiff to seek attorney’s fees as a prevailing party under 42 U.S.C. § 1988. A considerable portion of the fees Taylor seeks in his present motion represents work performed on behalf of the absent members of the uncertified class and plaintiffs in other similar cases. Taylor’s attorneys reason that because they filed a number of these cases for several different property owners under the same theory of recovery, they should be able to apportion the value of the work performed on those lawsuits and recover part of it in the present case. Taylor may recover a reasonable attorney’s fee, but only for the work performed on this case. The motion for attorney’s fees will be granted, but not for the full amount sought by the plaintiff. I. After Oakland County foreclosed on Taylor’s home to cover his delinquent tax obligation, and Taylor failed to redeem his property, the County sold it to the City of Southfield, which sold

it to other former defendants in the case. Taylor alleged that his home was worth considerably more than the amount of the property taxes he owed. He sued the County and everyone else in the chain of transfer to recover the excess value and other damages. He also sought to pursue his claim on behalf of a class of similarly situated property owners. As to the Southfield defendants, the plaintiff charged that they conspired to take his property — the value in excess of the delinquent tax debt — and thereby deprive him of his civil rights. The underlying facts concerning the disposition of Taylor’s property were undisputed from the outset of the litigation. Taylor owned a house in Southfield, Michigan. When he failed to pay the real estate taxes due on the property in 2014 and other prior years, the Oakland County Treasurer foreclosed on the property as allowed by the Michigan General Property Tax Act, Mich. Comp. Laws §§ 211.1, et seg. On February 8, 2017, the Oakland County, Michigan circuit court entered a judgment of foreclosure. Taylor did not redeem the property by paying the outstanding tax liability, appeal the foreclosure judgment, or seek post-judgment relief. Exercising a then-applicable provision of the General Property Tax Act, the Oakland County Treasurer took absolute title to the property and conveyed it to the City of Southfield, which in turn conveyed it to defendant Southfield Neighborhood Revitalization Initiative, LLC (SNRJ) for disposition by SNRI and its affiliated entity, Southfield Non-Profit Housing Corporation (SNHC). SNRI entered into a release with Taylor in which he agreed to vacate the property in consideration for a $2,000 payment. However, Taylor refused to vacate the property, and SNRI ultimately evicted him. Despite having equity in the home that exceeded the amount of his unpaid property taxes, Taylor received nothing following the foreclosure.

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Taylor filed a complaint without a lawyer’s help on August 29, 2019, asserting various claims relating to the foreclosure of his home due to unpaid property taxes. The foreclosure resulted in Taylor losing the entire interest in his house, even though he says that the value far exceeded his tax liability. On November 12, 2020, former United States District Judge Stephanie Dawkins Davis adopted a report from a magistrate judge in this Court recommending that the complaint be dismissed without prejudice because the Court lacked subject-matter jurisdiction over Taylor’s claims. However, before Judge Davis filed her opinion, the Sixth Circuit decided Freed v. Thomas, 976 F.3d 729 (2020), which marked a “monumental sea-change” in this circuit with respect to a taxpayer’s right to receive the equity in his home following a tax foreclosure. There, the court of appeals overruled the precedent that Judge Davis relied on when she dismissed Taylor’s complaint. Under the new governing law, federal courts may exercise jurisdiction over claims challenging the right of a local taxing authority to retain foreclosure proceeds in excess of an unpaid tax liability. Freed, 976 F.3d at 734-40. On November 12, 2021, one year after the dismissal, Taylor, now represented by counsel, filed a motion to reopen his case and for leave to file an amended complaint. The Court ultimately granted the motion and reopened the case on March 26, 2023, and Taylor filed an amended complaint through counsel. In the amended complaint, filed on April 10, 2023, Taylor asserted claims against defendant Oakland County for (1) unlawful taking of property without just compensation in violation of the Fifth and Fourteenth Amendments (Count I), (2) inverse condemnation (Count II), and (3) procedural due process violations (Count IID); and he brought claims against defendants City of Southfield, SNHC, and SNRI and the named City officials (Frederick Zorn and Kenson Siver, who also are board members of SNHC and SNRJ) for unlawfully conspiring to violate the plaintiff's property rights (Count IV).

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The Court entertained motions to dismiss filed by defendants City of Southfield, Kenson Siver, Frederick Zorn, Southfield Non Profit Housing Corporation (SNHC), and Southfield Neighborhood Revitalization Initiative, LLC (SNRI). On June 14, 2023, defendant Oakland County filed a motion to strike the class allegations from the complaint, arguing that such claims were foreclosed by the Sixth Circuit’s controlling holding in Tarrify Properties, LLC v. Cuyahoga County, 37 F.4th 1101 (6th Cir. 2022), where the court of appeals upheld a decision denying a motion to certify a class of property owners who suffered a similar loss following tax foreclosures. Id. at 1106. After the motions were set for oral argument, the Court referred the parties to mediation in advance of the hearing, but the retained mediator reported that the parties made essentially no serious effort to achieve a negotiated resolution, preferring instead to await the Court’s rulings on their motions. On January 16, 2024, the Court issued an opinion granting the motions to dismiss by the City-affiliated housing authority defendants, and also granting Oakland County’s motion to strike the plaintiffs class allegations. Taylor v. Oakland County, No. 19-12548, 2024 WL 188376, at (E.D. Mich. Jan. 16, 2024). On June 13, 2024, the Court held a final pretrial conference and a hearing on the parties’ several motions in limine which were filed in advance of trial. After the motion hearing was concluded, the parties indicated their desire to engage in further settlement negotiations. Following a four-hour recess, the parties advised the Court that they had reached an agreement to resolve the surviving individual claim against the County for a payment to the plaintiff of $150,000 and an agreement by the defendant that it would not oppose a fee request under 42 U.S.C. § 1988

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Bluebook (online)
Taylor v. Jackson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-jackson-mied-2025.